Sales Tax Revenue Up in Three Cities, Down in One

Rogers led the way in sales tax revenue collection this month with a 5 percent increase, while Fayetteville and Bentonville logged modest increases. Springdale took a 5 percent plunge.

Sales tax revenue delivered in December reflects October tax collected in November. Comparisons are based on collection from the same month in the previous year.

By The Numbers

Sales Tax Revenue

City December 2011 December 2012 Percentage Change YTD 2011 YTD 2012

Bentonville $773,150 $774,011 +0.1 $7,665,781 $9,166,377

Rogers $1,037,840 $1,089,925 +5 $12,102,897 $13,126,229

Springdale $893,671$848,174 -5 $9,951,966$10,219,414

Fayetteville $1,392,803 $1,407,189 +1 $16,392,477 $17,460,510

Siloam Springs $229,230 $234,230 +2.2 $2,860,141 $2,643,167

Bella Vista $116,843 $113,804 -2.6 $1,269,426 $1,310,791

Lowell $117,141 $337,067 +90 $1.930,231 $2,138,831

Source: Staff Report

Each city, with the exception of Bella Vista, collects a 2 percent sales tax. One percent is devoted to repaying bonds. The other 1 percent goes into each city’s general fund and is available for operations. For the purpose of this report, NWA Media tracks the 1 percent going into general funds.

Rogers, for the eighth consecutive month, received sales tax revenue exceeding $1 million. The city received $1,089,925 compared with $1,037,840 for the same period last year, an increase of $52,085, or 5 percent.

“Receiving more than $1 million in sales tax revenue is becoming the norm rather than exception for us,” said Richard McComas, Rogers’ treasurer and chief financial officer.

“If you compare actual revenue to our budget, we are up $1,126,230 over last year, an increase of 9.3 percent. If you compare actual revenue last year to actual revenue this year, we’re up 8.46 percent,” McComas said.

The 2013 budget estimates sale tax revenue will be about the same next year.

“We expect the revenue will increase, but at some point, it has to flatten out. It can’t continue rising the way it has forever,” McComas said.

Fayetteville had a modest 1 percent increase over the previous year, bringing in $1,407,189 compared with $1,392,803, an increase of $14,386.

“Sales tax revenue was pretty flat this month compared to last year,” said Paul Becker, Fayetteville’s finance director. “Still, we are up about $14,000, and 1 percent, I’ll take that as a positive increase. I would have liked to have seen higher sales tax revenue, but I can live with this. We are up about 6 percent for the year.”

One difference is Bikes, Blues & BBQ was held in September this year rather than October, Becker said.

“We had a major increase in November sales tax revenue because of the festival, so it all works out OK,” Becker added.

Bentonville received $774,011 this month compared with $773,150 last December, an increase of $860 or 0.1 percent increase.

Denise Land, Bentonville’s finance director, couldn’t be reached for comment Thursday. Messages were left on her answering machine, but the calls weren’t returned.

Springdale, after several months of increasing sales tax revenue, took a tumble, receiving $848,174 compared with $893,671 for the same period last year, a drop of $45,497, or down 5 percent.

“Last December, we were way ahead of the previous December, so we dropped back into our normal revenue stream,” said Wyman Morgan, Springdale’s director of administration and financial services.

While revenue may have declined this month, the city is ahead for the year.

“We received more than $10 million in sales tax revenue this year for the first time since 2008. I am pleased with the way we ended the year,” Morgan said.

The Springdale 2013 budget predicts a 4 percent increase in sales tax.

“We think we can make that. We are getting a new Walmart superstore that should increase our future sales tax revenue since that store probably won’t open until 2014,” Morgan said.

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