Northwest Arkansas sales tax receipts rise

Sales tax collection in Northwest Arkansas' four largest cities continued to climb this month, with Springdale once again leading the pack.

The city's tax receipts rose 18.7 percent, from $813,815 in March 2014 to $966,085 this month, a difference of $152,270.

Sales Tax Collection

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.

CityMarch 2014March 2015*Percent Change

Bentonville$762,246$854,057*12 percent

Bella Vista$110,629$144,894*31 percent

Fayetteville$1,325,512$1,483,153*11.9 percent

Lowell$218,898$283,729*29.6 percent

Rogers$1,037,374$1,123,302*8.3 percent

Siloam Springs$216,761$246,595*13.8 percent

Springdale$813,815$966,085*18.7 percent

Source: Staff report

The increase matches Springdale's growth for the year. The city took in $2,967,875 during the first three months of 2015, compared with $2,501,106 in the first quarter of 2014 -- also a change of 18.7 percent.

"We think it's because of all of the infrastructure we've put in place the last 10 years," said Wyman Morgan, Springdale administration and finance director, on Friday. "Businesses are looking to create jobs where people want to live and where people can get around."

Morgan mentioned improvement to Wagon Wheel Road, Don Tyson Parkway, Elm Springs Road and Arkansas 265 in particular.

While Springdale experienced the largest percentage growth in March, Fayetteville posted the highest dollar increase.

Sales taxes there grew $157,641, or 11.9 percent, from $1,325,512 last March to $1,483,153 this month. The city is showing growing sales overall for the year. During the first three months of 2014 the city received $4,502,219 in sales tax compared with $4,916,077 in 2015, a difference of 9.2 percent.

Taxes distributed to cities in March represent January sales.

Don Marr, Fayetteville Mayor Lioneld Jordan's chief of staff, said weather may have had something to do with this month's increase.

"We're ecstatic about the results, but it is over a relatively sluggish January of the prior year," Marr said Friday.

Up to 5 inches of snow blanketed much of Northwest Arkansas for more than two days in January 2014. By comparison, this January was mild.

Morgan, the Springdale finance director, said recent sales tax increases shouldn't be solely attributed to weather, however.

"If you look at the past year, we're up 13 percent for the most recent 12 months compared to the 12 months before that," he said. "So it's beginning to be pretty consistent."

Bentonville also made a strong showing in March. Last year, the city took in $762,246 compared with $854,057 this month, a difference of $91,811, or 12 percent.

Year-to-date collections are up 8.8 percent in Bentonville -- from $2,335,578 in the first quarter of 2014 to $2,540,808 this year.

"Our budget is $9.6 million for the year," said Denise Land, city finance director. "$800,000 a month is what we would like to average, and, so far, we're doing that."

Land said Bentonville officials will formulate a plan for what to do with any surplus sales tax revenue later in the year when they set a budget for 2016. She mentioned a $1 million fire truck as an option.

"It's nice to have some savings or reserves for when the big expenses happen," Land said.

Rogers had the smallest sales tax increase among Northwest Arkansas' four largest cities in March but still made healthy gains. Sales taxes climbed by $85,928, or 8.3 percent, from $1,037,374 in March 2014 to $1,123,302 this month.

Rogers' year-to-date growth is holding steady, too. During the first three months of 2015, the city received $3,994,850, compared with $3,691,763 last year -- an increase of 8.2 percent.

Overall, the region's four largest cities collected $4,426,597 this month, a $487,650, or 12.4 percent, increase over the $3,938,947 collected in March 2014.

Year-to-date collections have grown by 10.7 percent -- from $13,030,666 in the first quarter of 2014 to $14,419,610 this year.

NW News on 03/28/2015

Upcoming Events