Sales tax revenue around Northwest Arkansas increased for the month of August, and city administrators said they were pleased to see the steady growth the revenue represents.
Sales tax remitted to the cities in August was collected in July from June’s retail sales.
Comparisons are based on collection from the same month in the previous year. Each city, with the exception of Bella Vista, collects a 2 percent sales tax. One percent of the tax 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.
By The Numbers
Sales Tax Revenue
City*August 2012August 2013Percentage ChangeYTD 2012YTD 2013
Bentonville*$656,619$968,09747.4$6,147,148$6,386,787
Rogers*$1,129,755$1,223,8928.3$8,694,930$9,788,653
Springdale*$881,546$904,6532.6e$6,750,467$6,939,126
Fayetteville*$1,444,987$1,502,2703.9611,464,546$11,935,021
Siloam Springs*228,113$256,00112.21,703,556$1,904,412
Bella Vista*$105,947$116,82910.3$845,904$894,787
Lowell*$250,872$277,82610.7$1,571,5121,717,714
Source: Staff Report
Bentonville had a 47.4 percent increase compared to last year at the same time, however, sales tax received by the city in August 2012 was probably one of the lowest of the year, said Mayor Bob McCaslin.
The large increase could be the result of a large purchase by a business in the city. State officials will not reveal who paid what amount of tax. Large purchases often qualify for rebate under the Streamline Sales Tax Project. Rebates can reduce the amount of sales tax a city receives in any month.
Bentonville received $968,097 in sales tax for June sales, a $311,478 increase over last August when the city received $656,619 in sales tax. The city has shown growth overall.
“Bentonville has a history of not spending everything we take in,” McCaslin said.
Sales tax revenue that exceeds what the city budgeted could be saved for a new fire station the city may build next year, he said.
“It’s nice to be able to feed capital projects out of your current projects and not with debt,” he said.
Rogers received $1,223,892 in August for June sales for an 8.3 percent increase over last August, a difference of $94,137.
The city has had 16 consecutive months with sales tax revenue exceeding $1 million, said Casey Wilhelm, Rogers chief financial officer.
“We’re just seeing a trend. It’s just been our new normal that we’re up every month,” Wilhelm said.
Wilhelm said she's curious to see how the August sales tax holiday will reflect in the city’s October sales tax check from the state.
Springdale and Fayetteville administrators said they are happy with consistent growth.
Springdale received $904,653 in August for June sales for a 2.62 percent increase, or $23,107 over last August. That's better than the average for the year, said Wyman Morgan, Springdale director of finance and administration.
“It’s stabilized. Its pretty consistent now with the increase,” Morgan said.
During seven of the last eight months the city’s average has been up over the same period last year, Morgan said.
Fayetteville received $1,502,270 in August for June sales for a $57,283 increase, or 3.96 percent, above last August.
That takes city sales tax receipts up to a 4 percent average increase for the year, said Paul Becker, Fayetteville finance director. He budged 2 percent.
“I’m satisfied with that,” Becker said.
Springdale’s consistent growth, combined with Fayetteville’s numbers show the overall health of Washington County sales tax, Becker said.
“That’s a very important indicator,” he said.