Northwest Arkansas sales tax strong for December

Springdale led the region in percentage growth of sales tax for the holiday season.

This month's sales tax receipts climbed 17.3 percent for Springdale from $879,036 in February 2014 to $1,031,099 in February 2015, a $152,063 increase.

City20142015*Percent change

Bella Vista$115,728$100,952*-12.8 percent

Bentonville$893,261 $841,178*-5.8 percent

Fayetteville$1,713,483$1,872,412*+9.3 percent

Lowell$257,867$345,145*+33.8 percent

Rogers$1,409,112$1,611,772*+14.4 percent

Siloam Springs$274,960$296,566*+7.9 percent

Springdale$879,036$1,031,099*+17.3 percent

Source: Staff Report

February sales tax received by the cities was collected in December, pointing to strong Christmas sales.

It's good news for Springdale, said Doug Sprouse, mayor.

Sprouse attributes part of that growth to an improving economy, but the new Walmart Supercenter at Elm Springs Road has been a boost. The Elm Springs area is ripe for more development, Sprouse said.

"That area is really going to blossom, probably before the ballpark area does," he said.

Rogers had the highest increase in dollars.

The numbers were bound to be good this year, said Casey Wilhelm, director of finance.

"We're up against a really bad December last year," she said.

Bad weather kept sales down and shoppers inside during December 2014. Wilhelm expected steady growth.

Rogers sales receipts were up 14.4 percent with $1,611,772 received this February compared to $1,409,112 in February 2014. The $202,660 was the highest dollar difference among the four cities.

It's a good performance for a city that opened no new box stores in the past year, Wilhelm said.

Fayetteville, too, showed a significant increase.

Sales tax receipts this month were up 9.3 percent over February 2014. The city received $1,872,413, compared to $1,713,483, an increase of $158,930.

"It must have been a happy Christmas for a lot of people," said Paul Becker, finance director.

The February receipts represent the opening of the new year in finance and can signal a positive or negative trend for the year. This year's start makes his projected 1-2 percent increase look more than solid, Becker said.

Bentonville showed a 5.8 percent drop comparing February 2014 and 2015 receipts, falling from $893,261 to $841,178, a decrease of $52,083.

Denise Land, finance director, said she budgets $800,000 a month for sales tax receipts.

"As long as we can collect what we budget we're good," she said.

Businesses can request sales tax rebates on purchases of $2,500 or more and have six months to do so. Historically Bentonville sales tax rises and falls with rebate requests from large business purchases.

Still, averaging January and February receipts, Bentonville had an increase of 7.2 percent over the same two months last year. Between January and February of 2014, the city received $1,573,332, but that rose to $1,686,751 in January and February of 2015.

Rogers went from $2,654,389 received in January and February of 2014 to $2,871,548, an 8.2 percent increase so far this calendar year.

Fayetteville went from $3,176,707 received in January and February of 2014 to $3,432,924 in the same months in 2015. That is an 8.1 percent increase.

Springdale had the highest growth between the two months. Between January and February of this year the city received $2,001,791, compared to $1,687,291 for the same period last year, growth of 18.6 percent.

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 02/28/2015

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