Tuesday, December 24, 2013
Rogers and Bentonville sales tax revenue increased by more than 5 percent this month compared to the same period last year, with Fayetteville and Springdale also showing positive increases.
Sales tax revenue received in December reflects October sales tax collected in November.
Sales Tax Numbers For August
City * 2012 * 2013 * Percentage Change * YTD * 2012 * 2013
Bentonville * $774,011 * $819,262 +5.8 * $7,665,781 * $9,354,168
Rogers * $1,089,925 * $1,147,392 * +5.3 * $13,126,229 * $14,416,536
Springdale * $848,174 * $852,789 * +0.5 * $10,219,414 * $10,501,271
Fayetteville * $1,407,189 * $1,457,601 * +3.6*$17,460,510 * $18,031,437
Siloam Springs * $234,230 * $240,104 * +2.5*$2,643,167 * $3,139,902
Bella Vista * $113,804 * $121,912 * +7.1 * $1,310,791 * $1,372,339
Lowell * $337,067 * $223,174 * -33.7 * $2,138,831 * $2,768,931
Source: Staff Report
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 Media tracks the 1 percent going into general funds.
Bentonville had the highest increase in revenue with a 5.8 percent increase over last December. Sales tax revenue for the month is $819,262, compared with $774,011 last year, a difference of $45,250. Figures have been rounded.
“Our sales tax revenue for the year is significantly higher than what we budgeted,” said Bob McCaslin, Bentonville mayor. “We budgeted for $8.7 million in sales tax revenue, and we’ve collected $726,000 more than what’s in the budget.”
Looking ahead McCaslin said he is optimistic about growth of the Bentonville economy.
“Our hospitality and hotel business is expected to increase with the opening of new hotels and restaurants scheduled for next year. We are also expecting more retail stores to open, which should increase our sales tax revenue,” McCaslin said.
Rogers’ sales tax for the month reached $1,147,392 an increase of $57,466 over last year when $1,089,925 was received, or an increase of 5.3 percent.
Rogers sales tax revenue has been on a steady increase in the last two months of 2011 when revenue began topping $1 million per month. The city sales tax revenue continued to be in seven figures during all of 2012 and 2013, with each month’s revenue higher than the same month the previous year, according to sale tax revenue spreadsheets.
“We have received more than a $1 million this year than in 2012,” said Casey Wilhelm, city finance director.
“The council and the mayor are pretty conservative when comes to setting the budget. The budget for next year predicts our sales tax revenue will increase over this year, but not by much. I would rather budget revenue low and exceed revenue projections that have to explain why we missed the budget,” Wilhelm said.
Fayetteville sales tax revenue reached $1,457,601 this month compared with $1,407,189 for the same period last year, an increase of $50,411 or 3.6 percent.
“We are continuing to do well,” said Paul Becker, Fayetteville finance director. “We surpassed our sales tax budget this year, and I think the economy will remain healthy next year.
Springdale barely made into positive numbers this month with sale tax revenue of $852,789, a 0.5 percent increase, or $4,614 over the same period last year when the city received $848,174.
Wyman Morgan, Springdale director of finance and administration, could not be reached for comment Monday as Springdale City Hall was closed for the Christmas holiday.