Northwest Arkansas' four largest cities report healthy sales tax gains midway through the year.
Sales tax receipts in Bentonville, Fayetteville, Rogers and Springdale were up about $2.68 million, or 10.2 percent, in the first six months of 2015 compared with the same period last year. Total receipts climbed from $26.18 million to $28.87 million.
Sales Taxes
The following cities in Northwest Arkansas, with the exception of Bella Vista, collect 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, the Northwest Arkansas Democrat-Gazette tracks the 1 percent going into general funds.
CityJune 2014June 2015*Percent Change
Bella Vista$126,078$148,372*17.7 percent
Bentonville$714,355$913,273*27.8 percent
Fayetteville$1,475,961$1,588,211*7.6 percent
Lowell$274,633$356,766*29.9 percent
Rogers$1,184,283$1,312,329*10.8 percent
Siloam Springs$253,576$254,960*0.5 percent
Springdale$950,962$1,050,893*10.5 percent
Source: Staff report
"I just hope it continues," said Denise Land, Bentonville finance director. "We budgeted basically $9.6 million (for the year). At the rate we're going, we're going to hit that in October."
Bentonville's tax receipts are typically the most volatile of the four cities, because businesses there, such as Wal-Mart, historically have received sales tax rebates in batches.
Bentonville receipts in June jumped by about $199,000, or 27.8 percent, from $714,000 in 2014 to $913,000 this year.
June figures reflect April sales.
The city is also up for the calendar year. Bentonville took in $5.39 million in sales taxes during the first two quarters of 2015, a $713,000, or 15.3 percent, increase compared with $4.67 million during the same period last year.
Land noted several factors that may be at play, including increased tourism from multiple running festivals and the Crystal Bridges Museum of American Art.
Sales taxes from purchases made during the Bentonville Film Festival, held May 5 to 9, will be posted next month. Visit Bentonville officials estimate the film festival had a $300,000 to $400,000 economic impact.
Rogers reported the second highest sales tax growth in Washington and Benton counties this month.
The city received about $1.31 million in June, a $128,000, or 10.8 percent, increase over the $1.18 million Rogers posted in June 2014.
With six months to go in 2015, Rogers has received $7.88 million via its 1-cent city sales tax. That's $608,000, or 8.4 percent, more than the city took in during the first six months of 2014.
Casey Wilhelm, Rogers finance director, has said any surplus money in this year's budget will help pay for several large capital projects, including a new fire station, soccer complex and overhaul of the Lake Atalanta area.
A banner sales tax year continued in Springdale. The city received about $1.05 million this month, up $100,000, or 10.5 percent, compared with the $951,000 the city received in June 2014.
Springdale took in $5.99 million during the first six months of the year, a $700,000, or 13.2 percent, gain over the same period in 2014.
That's the city's highest first two quarters of a year in nearly a decade.
"We're getting back to the record high that we had back in 2006," said Wyman Morgan, Springdale financial services director. "We've recaptured and recovered, and now we can possibly start looking at expanding some of our services."
Morgan said several street projects, including improvement to Wagon Wheel Road, Don Tyson Parkway, Elm Springs Road and Arkansas 265, are beginning to pay off.
"Residents realize if they live in Springdale they can get around faster and easier than in other places, and businesses are picking up the new customers," Morgan said. He mentioned a Walmart Supercenter on Elm Springs Road in particular.
Fayetteville took in about $1.48 million in sales taxes in June 2014 and $1.59 million this June, a difference of $112,000, or 7.6 percent.
The city's tax revenue has exceeded last year's figures in each of the first six month of 2015.
Fayetteville took in about $9.61 million from January through June. That's $660,000, or 7.4 percent, more than the first six month of 2014 and about 51.5 percent of what city officials expected to receive when they set the 2015 budget last year.
If Fayetteville ends the year with a surplus, the money will be used, at least in part, to cover employee raises the City Council approved in March.
NW News on 06/26/2015