December Snow, Ice Puts Dent In Area Sales Tax Revenue

Saturday, February 22, 2014

ROGERS -- The December snow and ice appears to have dampened retail sales in Northwest Arkansas, based on the sales tax revenue.

Sales taxes received in February reflects December tax collected in January. Comparisons are based on collection from the same month in the previous year.

By The Numbers (w/logo)

February Sales Taxes

20132014*Percent Change

Bentonville$936,369$893,260 -4.6

Rogers$1,466,092$1,409,111*-3.8

Springdale$916,049$879,035*-4

Fayetteville$1,757,006$1,713,482*-2.4

Siloam Springs$246,854$274,959*+11.3

Bella Vista$110,853$115,728*+4.3

Lowell$204,530$257,866*+26

Source: Staff Report

Each city, except 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.

Bentonville received $893,260 this month compared with $936,369 for the same period last year, a $43,109 decrease, or 4.6 percent.

"We dropped a little, but I kind of expected it because the snow and ice kept everybody home for a week," said Denise Land, Bentonville finance director.

"I budgeted $750,000 per month in sales tax revenue. We may be down compared to last year, but we're still ahead with the $893,000 we did get. I would be happy to get $893,000 every month for the rest of the year," she said.

Rogers' sales tax revenue dropped by 3.8 percent compared with last year. The city received $1,409,111 this month compared with $1,466,092 last February, a $56,981 decrease.

"I'm not thrilled with the decrease, but I think it's just a blip and we will trend up the remainder of the year," said Casey Wilhelm, Rogers finance director.

"I think November was a bigger sales month than December, at least that's what I've heard. I also heard that Cyber Monday was bigger than Black Friday for the first time last year, that could be part of the downturn. The weather in December wasn't much help either," she said.

"We should see a bump when the Amp opens this year," Casey said of the Walmart Arkansas Music Pavilion. "I didn't account for any additional increase in sales tax revenue because of the Amp, so if we see the increase I expect, it will just make our bottom line look better."

Fayetteville dropped $43,524 in sales tax revenue this year. The city received $1,713,482 compared with $1,757,006 last year, a 2.47 percent decrease.

"Of course I'm disappointed, but I think the weather played a part in reducing sales tax revenue. It's early in the year, I'll wait to see how we fair next month," said Paul Becker, Fayetteville finance director.

Springdale dropped 4 percent compared with last year. The city received $879,035 this month compared with $916,049 for the same period last year, a $37,014 decrease.

Wyman Morgan, Springdale director of finance, echoed Becker, saying the weather may be the reason sales tax revenue dropped.

"This is the first time in two years we've had negative sales tax revenue in January and February. I really think the winter storm kept people from shopping in December. Residents may have shopped online when they couldn't get out. That could be part of it, too," Morgan said.

Sales tax revenue in Lowell, Bella Vista and Siloam Springs climbed this month compared with last year, with Lowell having the largest increase of 26 percent, or $53,336. Lowell received $257,866, compared with $204,530.

NW News on 02/22/2014