Sales tax jumps up across Northwest Arkansas

Sales tax revenue received this month by the four largest Northwest Arkansas cities showed strong September spending.

Springdale was up 6.1 percent, Fayetteville was up 8.7 percent, Rogers had an 11.1 percent increase and Bentonville showed a 57 percent increase this September compared to last year.

NWA Sales Taxes

City20142015*Percent change

Bella Vista$145,047$138,527*- 4.5

Bentonville$807,035$1,266,698*+57

Fayetteville$1,564,289$1,700,603*+8.7

Lowell$258,127$246,683*-4.4

Rogers$1,255,3851,$395,056*+11.1

Siloam Springs$253,093$291,117*+15

Springdale$984929$1,045,040*+6.1

Source: Staff Report

Sales tax collected in September is remitted to cities from the state in November. This report tracks 1 percent of sales tax across the cities that feeds general funds.

The Bentonville increase was an anomaly, said Denise Land, finance director. Bentonville often sees large businesses apply for sales tax rebates from the state outside the month in which the money was spent, so a rebate in some other month may reduce money received from the state, she said. Still, the city has almost hit her revenue projection for 2015.

November sales tax revenue in Bentonville hit $1,266,698, up $459,663 over last year's $807,035 for the 57 percent increase.

"This is our biggest month ever," Land said. "It was like Santa Claus came early."

The city saw growth in calendar year receipts in January through November this year over last year taking in $10,200,328 this year compared to $9,026,349 last year, an increase of 13 percent.

In Rogers, November sales tax revenue hit $1,395,056 compared to $1,255,385 last year, a difference of $139,671 or 11.1 percent.

The numbers were stronger than anticipated, said Casey Wilhelm, director of finance in Rogers.

The city was also up for the calendar year so far. Receipts in January through November this year over last year increased 7.8 percent from $1,3651,632 to $1,4719,276.

Fayetteville sales tax revenue received this month grew 8.7 percent with $1,700,603 this year compared to $1,564,289 last year, a $136,314 difference.

The increase shows the contrast between a weak and a strong September, said Paul Becker, Fayetteville finance director.

Back-to-school sales tax dollars won't predict whether the holiday season will top last year, Becker said. Early winter numbers were strong and weather can be a factor in spending, he said.

However, judging by the September numbers and growing trend, people apparently are more comfortable spending this year than last, he said. Holiday sales tax is likely to top 2014 receipts, but not by the same margin as the September comparison, he said.

A comparison of sales tax receipts from January through November of this year in Fayetteville shows $17,958,219 so far compared to $16,750,291 last year, a 7.2 percent increase.

Springdale's sales tax receipts this month were 3 percent higher than a 2006 record, said Wyman Morgan, administrator and financial services director.

The city took in $1,045,040 compared to $984,929 last November, a difference of $60,111 or 6.1 percent.

Springdale's growth comes from everyday shoppers and is unlikely to be affected in the coming months by holiday shoppers, he said. Morgan said he was pleased with the consistent increase shown this year.

Between January and November sales tax revenue was up 9.7 percent compared with the same period last year moving from $10,355,292 to $11,363,329 this year.

As the cities get close to the end of the calendar year some already have exceeded sales tax received during 2014 with money that has come in through November.

From January to November in Bentonville, the city's receipts are already $292,487 above last year's January through December receipts of $9,907,842.

Springdale is $9,474 ahead of last year's entire calendar year collection of $11,353,854

Rogers needs $158,306 in receipts to surpass last year's $14,877,582 total.

Fayetteville, which has the highest sales tax income of the four with $18,307,726 last calendar year, will eclipse last year's take after an additional $349,507 in sales tax receipts.

NW News on 11/26/2015

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