Sales Tax Revenue Climbs Across Region, All Cities See Rise

Sales tax revenue for the major cities in Northwest Arkansas was higher this month than the same month last year with Springdale receiving the most revenue, followed closely by Bentonville and Rogers.

Springdale sales tax revenue was $1,042,894 compared to $906,466 for the same period last year. Revenue was up $136,428, an increase of 15.1 percent.

By The Numbers

Sales Taxes

City*2013*2014*Percentage Change

Bentonville*$848,281*$930,010*+9.6

Rogers*$1,165,994*$1,274,634*+9.3

Springdale*$906,466*$1,042,894*+15.1

Fayetteville*$1,579,933*$1,654,728*+4.7

Siloam Springs*$254,822*$269,270*+5.7

Bella Vista*$120,592*$144,624*+19.9

Lowell*$216,375*$249,215*+15.2

"I think the increase is due to the opening of the Walmart Supercenter on Elm Springs Road," said Wyman Morgan, administration and finance director for Springdale.

"The increase doesn't represent a full month of sales tax revenue because the store wasn't open the entire month of August. Next month we should get a full month of tax revenue," Morgan said.

Sales tax revenue is based on August sales, collected in September and distributed to the cities in October.

"We're in good shape for the year. I expect we will finish the year ahead of last year," Morgan said.

Bentonville sales tax revenue is ahead for the year, said Denise Land, city finance director.

"We're up $780,000 over the first 10 months of the year compared to last year. I don't have a problem with that," Land said.

For the month, Bentonville received $930,010, $81,729 over the $848,281 received in October 2013, a 9.6 percent increase.

"We are on track to collect $9.5 million this year compared to the $9.3 million we collected last year. We budget tight and will do it again this year. I don't think I will project we will collect $10 million in sales tax revenue next year." Land said. "We might, but I'm going to budget for about $9.5 million. If sales tax revenue is higher, that's just fine with me."

Sales tax revenue in Rogers continued upward in October. The city received $1,274,634 this month compared to $1,165,994 last October, a $108,640 increase, or 9.3 percent.

"Revenue looks good for the whole region," said Casey Wilhelm, Rogers' finance director.

"We are at 89 percent of what I anticipated for the year, or about $14 million. I feel certain we will reach $14.5 million or higher this year," she said. "We've already collected $12,396,246 with two months to go. We are in good shape on the budget, and everything is looking good."

Fayetteville sales tax revenue increased 4.7 percent over October 2013. The city received $1,654,728 this month compared to $1,579,933 for the same period last year, a $74,795 increase.

"We are actually about $85,000 behind where we should be for this time of the year," said Paul Becker, Fayetteville finance director.

"I'm not too worried. I think we will make up the difference by the end of the year. It's always good when we're up over last year. I wish it were more, but I can live with being up 4.7 percent over October 2013," Becker said.

"We have a lot of capital improvements going on right now. As we complete those improvements, I believe sales tax revenue will increase," Becker said.

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 10/23/2014

Upcoming Events