Sales tax revenue increased for much of the region this month.
Fayetteville and Rogers had sales tax increases of more than 8 percent in June. Tax revenue increased 1.8 percent in Springdale. Bentonville had a 4.5 percent decrease.
Sales tax revenue reported in June reflects April tax collected in May. Comparisons are based on collections from the same month in the previous year. 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 Online tracks the 1 percent going into the general funds.
Fayetteville showed the highest increase compared with figures from the same period last year. The city received $1,437,509 compared with $1,323,533 last year, an increase of $113,976 or 8.6 percent.
Steady growth has put the city $782,000 ahead of budget and covered a $765,000 salary package for city employees put in place during the first quarter, said Paul Becker, Fayetteville’s finance director.
“Our budget looks good,” Becker said.
Rogers had an 8.5 percent increase this month compared with June 2011. The city received $1,078,768 compared with $994,147 last year, an increase of $84,621.
“The latest figures indicate a trend we have been watching for the past several months,” Hines said.
For eight of the last 12 months, the city has received $1 million or more in sales tax revenue. This is the first June in the history of the city it has received $1 million, Hines said.
The 2012 budget increased sales tax revenue by 4 percent, Hines said.
“We have been tracking at 8.9 percent ahead of last year. That’s 4.9 percent higher than we anticipated. I’d say the city is doing well,” Hines said.
Receipts in Springdale were 1.8 percent higher this month than this year at the same time. The city received $839,385 up from $824,582 last year, an increase of $14,803.
Wyman Morgan, Springdale’s director of finance and administration, said he sees growth in Springdale’s future. Three new restaurants have opened in Springdale in the last few months, Morgan said, and upcoming construction on the Razorback Greenway also will bring tax dollars to the community.
“We think Springdale is on the verge of coming up,” Morgan said.
Bentonville had a 5 percent decrease compared with last year’s June numbers. The small drop does not worry Denise Land, Bentonville finance director. The city’s sales tax receipts are still up for the year, Land said.
“This is just a hiccup,” Land said.
Bentonville took in $664,781 in sales tax compared with $699,598 last year, a decrease of $34,817. Although receipts were down in June, in May the city had a 12.5 percent increase, the strongest showing in the region.
Sales tax receipts were up in 7.6 percent in Lowell, 1.4 percent in Bella Vista and 0.5 percent Siloam Springs.