Springdale Tops Region In Sales Tax Percentage Increase

Springdale was the regional leader in sales tax revenue percentage increase this month with Bentonville and Rogers revenue down slightly and Fayetteville up just over 1 percent.

Springdale received $1,037,872 this month compared with $904,652 for the same period last year, a $133,220 increase, or 14.7 percent.

By The Numbers (w/logo)

Sales Taxes

City*2013*2014*Percentage Change

Bentonville*968,097*$907,936*-6.2

Rogers*$1,223,891*1,212,517*-0.9

Springdale*$904,652*$1,037,872*+14.7

Fayetteville*$1,502,270*$1,525,198*+1.5

Siloam Springs*$256,000*$279,315*+9.1

Bella Vista*$116,829*$135,737*+16.1

Lowell*$277,825*$238,744*-14.1

Source: Staff Report

"We are up 4.8 percent for the past 12 months compare to the previous 12 month. This is the highest sales tax revenue we have ever received," said Wyman Morgan, director of finance and administration.

The increase couldn't have come at a better time, Morgan said.

"The 1 percent sales tax we get for the general fund doesn't all go in the general fund. We take about $4.1 million off the top for debt service, that's in addition to the 1 percent sales tax we collect for debt service. We put 50 percent of the 1 percent sales tax in the general fund, and if there is any revenue left, we put it into our capital improvement fund. We haven't been putting much in the improvement fund the past few years," Morgan said.

The Walmart Supercenter, which opened this month in Springdale, is expected to add to tax revenue, Morgan said.

"We won't know how much the new Walmart will add until we see the November sales tax numbers. November is the first time we will have a full month of sales tax revenue reported," Morgan said.

August sales tax numbers are based on June sales, collected in July. September will be the first full month of sales at the new Walmart, those taxes will be reported in September, collected in October and disbursed to the city in November.

Fayetteville managed to stay in positive numbers this month, but Bentonville and Rogers posted negative numbers compared with August 2013.

Fayetteville sales tax revenue was up 1.5 percent compared with the same month last year. The city received $1,525,198 compared with $1,502,270 for the same period last month, a $22,928 increase.

"I wish we were up a little more, but it is better to be up a little than down," said Paul Becker, Fayetteville finance director.

"We are up about 3 percent for the year. Students are returning to the university campus, and football season begins next month so I expect to see an increase in sales tax revenue in the next few months. We had a rocky start this year, but it's improving, and I think we are going to hit our sales tax revenue budget by the end of the year," Becker said.

Rogers received $1,212,517 this month compared with $1,223,891 last year, a $11,374 drop, or 0.9 percent.

"It a slight downturn, but I'm not worried," said Casey Wilhelm, city finance director.

"I don't see anything new in the way of retail stores opening in the next few months. I expect our sales tax will be relatively flat for the next few months," Wilhelm said. "We budgeted for $14 million in sales tax revenue this year. Right now we're in the 70 percentile on sales tax revenue. I think we will get the $14 million we budgeted by the end of the year," Wilhelm said.

Bentonville was hit the hardest with a 6.2 percent drop compared with the same month in 2013. The city received $907,936 compared with $968,097 in August 2013, $60,161 less.

Denise Land, Bentonville finance director, didn't return three phone calls to her office Thursday seeking comment.

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 08/22/2014

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