Sales tax revenue was up in November in three of the major cities in Northwest Arkansas, but dropped in Fayetteville.
Bentonville topped the list with the highest percentage increase compared with the same period last year. Sales tax revenue for November was $807,034, compared with $599,836, an increase of $207,198, or 34.5 percent.
By The Numbers
Sales Taxes
City*2013*2014*Percentage Change
Bentonville*$599,836*$807,034*+34.5
Rogers*$1,196,428*$1,225,385*+2.4
Springdale*$900,313*$984,929*+9.4
Fayetteville*$1,593,271*$1,564,289*-1.8
Siloam Springs*$235,668*$253,046*+7.4
Bella Vista*$119,409*$145,047*+21.5
Lowell*$284,196*$258,126*-9.2
Source: Staff Report
Infotext
At A Glance
Sales Tax Project
The Streamline Sales Tax Project is a multi-state project that seeks to standardize tax policy
throughout the United States in an effort to get Congress to pass legislation requiring mail order and
Internet retailers to charge sales tax.
Rebates are part of the Streamline Sales Tax Project.
Before Jan. 1, 2008, county and city taxes throughout Arkansas were only charged on the first
$2,500 of any single invoice. That cap no longer exists for individuals because of the project
requirements.
However, the cap still applies to businesses’ purchases through a rebate from the Department of
Finance and Administration. The business owner must pay the sales tax, then file for, a rebate
within six month of the invoice date.
Walmart, the world’s largest retailer, files for rebates, but city officials never know when the
rebate will hit.
Source: Staff Reports
Sales tax revenue in Bentonville is like a roller coaster, said Denise Land, finance director.
"With the streamline tax code we never know when a rebate to a business is going to hit. We can have double-digit increases one month and a double-digit drop the next, but I don't too excited one way or the other," Land said.
"We are going to hit $9 million in sales tax revenue this year, we are going to exceed our revenue budget projection for the year, so everything is fine in Bentonville," she said.
Springdale sales tax revenue has been on the rise the past few months, and November was no exception. Sales tax revenue for November was $984,929, compared with $900,313 last year, an increase of $84,616 or 9.4 percent.
Sales tax revenue in Springdale peaked in 2005 at $12,484,017, then began a steady decline. Revenue didn't start rebounding until 2012, when it rose to $10,219,414, from a low of $9,671,457 in 2010.
"We are very happy that we are finally on the right track," said Wyman Morgan, city administration and finance director.
"Our sales tax revenue is up 6.7 percent over the previous 12 months. We're on the right road, we just have to make up what we lost the past few years. We would like to get back so we could compete with Fayetteville and Rogers, and I think we will be there in about six months," he said.
Rogers' sales tax revenue has been increasing since 2000, when the annual revenue was $5,516,705. The city received $14,134,423 in sales tax revenue in 2013, and city officials say that total will likely be higher by several thousand dollars this year.
Rogers received $1,225,385 in sales tax revenue this month compared with $1,196,428 last year, an increase of $28,957 or 2.4 percent.
"What can you say, but thank you," said Casey Wilhelm, city finance director.
"Rogers is still growing, and that's good. What amazes me is the increase in sales tax from 2000 to now. Sales tax revenue has improved by about $7 million in the past few years, which is great," Wilhelm said.
Sales tax revenue in Fayetteville didn't fare as well, with revenue dropping 1.8 percent compared with last November. The city received $1,564,289 compared with $1,593,217 last year, a difference of $28,982. Fayetteville's sales tax revenue is slightly behind the annual total last year. The city received $18,031,437 in 2013. With one month left in the year, sales tax revenue in Fayetteville, stands at $16,750,290. To exceed the previous year, next month's sale tax revenue will have to reach at least $1,281,148.
"It's been an up and down year for us. We are somewhat behind my sales tax revenue projection for this year," said Paul Becker, city finance director.
"We are also behind last year's sales tax revenue. I feel certain we will make up the difference in time," Becker said.
NW News on 11/25/2014