Northwest Arkansas regional sales tax indicates growth

Sales tax income for May jumped for cities in Northwest Arkansas.

Sales tax received by cities in May represents March sales. For the purpose of this report the Northwest Arkansas Democrat-Gazette tracks the 1 percent of sales tax that goes into the cities' general funds. Each city, with the exception of Bella Vista, collects 2 percent sales tax and devotes 1 percent to repayment of bonds.

INFOTEXT

City20142015percent change2014 YTD total2015 YTD totalpercent change*

Bentonville$813,591$1,088,331+33.8 percent $3,958,779$4,472,967+13 percent

Bella Vista$133,262$171,448+28.7 percent$603,955703,129+16.4 percent

Fayetteville$1,516,534$1,647,228+8.6 percent $7,475,394$8,022,660+7.3 percent

Lowell$250,317$234,562-6.3 percent$1,199,616$1,294,5567.9 percent

Rogers$1,246,771$1,400,510+12.3 percent$6,086,332$6,566,437+7.9 percent

Springdale$941,066$1,056,121+12.2 percent$4,338,278$4,938,543+13.8

Siloam Springs$247,634$276,941+11.8 percent$1,234,944$1,344,2508.9 percent

Source: Staff Report

Bella Vista collects a 1 percent sales tax.

Bentonville jumped $274,740 in the amount of sales tax received this month over the same period last year.

The city took in $813,591 in sales tax in May 2014 and $1,088,331 in sales tax this May, a 33.8 percent increase. The only other times the city has exceeded the $1 million mark for 1 percent of its sales tax receipts was in July 2014, March 2013 and February 2012.

It's a record-setting amount, said Denise Land, finance director. Land budgets $800,000 a month for 1 percent of the sales tax income. Last year's sales tax income averaged just under $826,000 a month.

Isolating what caused the increase is speculation, Land said. March's spring break could have had something to do with the increase in spending. Travelers could have been coming to Crystal Bridges Museum of American Art, but there's no direct catalyst for the increase.

Businesses in Bentonville commonly request rebates from the state of sales tax paid on business purchases, so it's possible the year will level out.

"We can have a dip or two," Land said.

The city is up for the calendar year. Bentonville took in $3,958,779 in sales tax receipts from January through May of 2014. This year the city took in $4,472,967 during the same period, a 13 percent increase.

While Bentonville had the most significant increase, cities around the region, most of which had flat receipts last month, showed growth from March sales.

Receipts in Rogers were up 12.3 percent from $1,246,771 in May 2014 to $1,400,510 this month, a difference of $153,739.

"It's not what we expected, but we're very pleased," said Casey Wilhelm, Rogers' director of finance.

The increase is a bit of a mystery, she said. Rogers had no major stores open in March and no major events so it's difficult to say why sales tax receipts were up so significantly over last year, Wilhelm said.

The city is also up for the calendar year. The $6.5 million the city has received in sales tax thus far is 46 percent of what Wilhelm expected for the entire calendar year. The surplus will help with large capital projects in the city, completion of a new fire station, soccer complex and overhaul of the Lake Atalanta area. The $17.5 million Lake Atalanta project was approved Tuesday night and was slated to come from reserve. If sales tax money continues to exceed projections the city will not have to tap reserve, Wilhelm said.

From January through May last year sales tax receipts totaled $6,086,332. This year during the same time period they totaled 6,566,437, an increase of 7.9 percent.

Springdale posted a steady increase of 12.2 percent.

The city took in $941,066 in sales tax in May 2014 and $1,056,121 in sales tax this May, a difference of $115,055.

"We're thankful that our revenue continues to rise," said Mayor Doug Sprouse.

Growing tax revenue will help build improvements that will, in turn, expand the tax base, Sprouse said.

"We're depending on increasing revenues," he said.

Springdale is up 13.8 percent for the calendar year. From January through May last year sales tax receipts were $4,338,278. This year the city took in $4,938,543 during the same period, a $600,265 increase.

Fayetteville showed an 8.6 percent increase in May receipts. The city took in $1,516,534 in sales tax in May 2014 and $1,647,228 in sales tax this May, a $130,694 difference.

It's been a strong first quarter, said Paul Becker, finance director, and the city is happy with the results.

Overall for the calendar year the city was up 7.3 percent with $7,475,394 in sales tax receipts from January through May 2014 and $8,022,660 through the same period in 2015.

Receipts from April, were more or less flat. The upward trend across the region is a good sign, Becker said.

"I don't think it's an anomaly and I hope it continues in the future," he said.

NW News on 05/29/2015

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