Sales Tax Revenue Up In Northwest Arkansas Cities For April

The largest cities in Benton and Washington counties posted positive sales tax numbers for April, with Bentonville recording the highest percentage increase.

Sales taxes received in April reflects sales tax collected in February.

By The Numbers

April Sales Taxes

City * 2013 * 2014 * Percentage Change * YTD * 2013 * 2014

Bentonville * $671,902 * $809,609 * +20.49 * $3,462,703 * $3,145,186

Rogers * $1,089,715 * 1,147,790 * +5.3 * $4,719,104 * $4,839,552

Springdale * $834,571 * $896,105 * +7.37 * $3,375,333 * $3,397,211

Fayetteville * $1,371,828 * $1,456,640 * +6.18 * $6,004,771 * $5,958,859

Siloam Springs * $227,316 * $247,988 * +9.09 * $974,133 * $987,309

Bella Vista * $109,599 * $141,147 * +28.78 * $435,242 * $470,692

Lowell * $179,624 * $238,217 * +32.61 * $909,347 * $949,298

Source: Staff Report

Bentonville received $809,609 in sales tax this month, a $137,707 increase over $671,902 collected last year for a 20 percent increase. Total collection for the year, despite the increase this month, are tracking behind 2013 by more than $300,000.

"We were down 29 percent last month and up 20 percent this month, but that doesn't mean much. I budget for $750,000 in city sales tax revenue a month. So far, we have been over that amount every month this year. What hurt us last month was the $1 million sales tax we collected in 2013 compared to our March collection this year," said Denise Land, Bentonville finance director.

March sales tax is based on January sales tax collected in February. There was snow in February this year, which Land said hurt retail sales, dragging tax collection down.

Rogers sales tax increased 5.3 percent this month, compared with the $1,089,715 collected last year. The city received $1,147,790 this month, a $58,079 increase. Rogers collection for the year are higher than the same period last year -- up by more than $120,000.

"Like everybody else, we had a rough start this year because the bad weather kept people from shopping during the holidays, but we seem to be back on track now," said Casey Wilhelm, Rogers finance director.

"We are looking pretty good, but not great for the year. We are up about 2 percent over what I budgeted for sales tax revenue. As long as we are over our revenue projection, I don't have a problem," Wilhelm said.

Springdale got back on track this month following a bumpy start in January. The city collected $896,105 this month compared with $834,571 a year ago, a $61,534 difference, or a 7.3 percent increase. Collection is up this year by nearly $22,000.

"This is the biggest increase we've had since September. What a great way to start spring," said Wyman Morgan, Springdale director of finance and administration.

"We are ahead of last year in city and county sales tax collections. Now I am looking for a double-digit month," Morgan said with a laugh.

Fayetteville was up $84,812 over the previous April sales tax collection of $1,371,828. This month the city collected $1,456,640 for a 6.1 percent increase. Collection for the year are down slightly compared with the first four months of last year. Fayetteville's coffers are down $45,912 compared with the same period last year.

"We bounced back a little this month after a rocky start at the first of the year," said Paul Becker, Fayetteville finance director.

"It was a welcome relief to be up 6 percent in city sales tax and 7 percent in county sales tax revenue. Things seem to be looking up. Hopefully we are on an upward trail and everything will smooth out the rest of the year," he said.

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 is devoted to repaying bonds. The other 1 percent goes into each city's general fund. For the purpose of this report, NWA Media tracks the 1 percent going into general funds.

NW News on 04/23/2014

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