Sales Tax Revenue Climbs

Three Cities Show Increase

Springdale sales tax revenue increased this month with Rogers and Fayetteville numbers also showing increases over last year, while Bentonville’s numbers dipped slightly.

Comparisons are based on collection from the same month in the previous year. Each city, except 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 operation. For the purpose of this report, NWA Media tracks the 1 percent going into general funds.

By The Numbers

Sales Taxes

City 2012 2013 Percentage Year to date 2012 Year to date 2013

Bentonville $870,094 $869,852 -0.02 percent $3,499,606 $3,632,557

Rogers $1,145,748 $1,203,222 +5 percent $5,386,905 $5,922,324

Springdale $821,040 $899,737 +9.5 $4,186,022 $4,275,072

Fayetteville $1,435,816 $1,473,322 +2.6 percent $7,139,617*$7,478,095

Bella Vista $109,599*$115,375 +5.3 percent $527,642 $542,219

Lowell $189,259 $235,491 +24.4 percent $876,797 $1,144,840

Siloam Springs $278,621 $253,803 -8.9 $1,218,335 $1,171,989

Source: Staff Report

Sales tax revenue for May is based on March sales collected in April.

Springdale received $899,737 this month compared to $821,040 for the same period last year, an increase of $78,696, or 9.5 percent.

“This will help us quite a bit,” said Wyman Morgan, Springdale’s director of administration and financial services.

“Our sales tax collections are ahead of the first five months of last year. I think the economic situation in Springdale is slowly turning around. We’ve had a few new businesses open and some of existing businesses seem to be doing better. If Congress approves the Internet sales tax collection bill, it will change the world. A revenue increase will depend on how many people in our city buy items on the Internet,” he said.

Rogers continued its run of $1 million in collection. The city has received more than $1 million a month for 14 months, a record for the city.

City coffers improved by $1,203,222 month compared to $1,145,748 for May of last year, a $57,474 or 5 percent increase.

“I’m very pleased. The city is doing well. We have just about reached the amount of sales tax revenue I expected to collect in six months ,without adding in the May figures,” said Casey Wilhelm, Rogers financial director.

“We are in good shape financially. As far as I’m concerned, life is good in Rogers,” Wilhelm said.

Fayetteville’s sales tax revenue continued to climb as well. The city received $1,473,322 this month compared to $1,435,816 for the same period last year, a $37,505 or 2.6 percent increase

“We’re up about 4.4 percent over last year at this time,” said Paul Becker, Fayetteville finance director.

“I’m glad to see an increase, I would like it better if it were more than 2.6 percent, but it’s still up and not down. We are ahead for budget this year and I am happy with the results,” Becker said.

Bentonville’s sale tax revenue dropped for the second consecutive month, although not by much.

Sales tax revenue for May dropped $242 below what the city received for the same period last year. The city received $869,852 this month compared to $870,094 for May last year, a 0.02 percent drop

“Well I don’t the think the world is coming to an end if we’re down less than 1 percent over the previous year for May,” said Denise Land, Bentonville finance director.

“For the year we are up more than $100,000 over last year. I always budget pretty conservatively, so as long as we are ahead of the previous year, we are in good shape,” Land said.

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