Sales tax shows growth in Northwest Arkansas

NWA Democrat-Gazette/File Phto - Sales taxes were up last month in three of the top four cities.
NWA Democrat-Gazette/File Phto - Sales taxes were up last month in three of the top four cities.

Three cities in Northwest Arkansas saw an increase of about 7 percent this month in sales tax receipts.

Springdale was up 7.9 percent over 2015 January receipts. Rogers saw a 7.3 percent and Fayetteville 7.2 percent increase during the same period.

Sales tax returns

City* 2015*2016*Percent change*

Bella Vista*$135,242*$132,397*-2.1 percent

Bentonville*$845,573* $721,889*-14.62 percent

Fayetteville*$1,560,512*$1,672,933*+7.2 percent

Lowell*$231,905*$269,935*+16.4 percent

Rogers*$1,259,776*$1,351,292*+7.3 percent

Springdale*$970,692*$1,047,853*7.9 percent

Siloam Springs*$266,817*$276,605*+3.7 percent

Source: Staff Report

This report tracks a 1 percent general sales tax. Sales tax remitted to cities in January were collected by retailers in November.

Bentonville was down 14.6 percent, following two months of record receipts, said Denise Land, finance director.

Sales tax received in January was down $123,684 from $845,573 in January last year to $721,889 this year.

Land noted in December the city was up 36.3 percent with $1,201,499 in receipts and in November the city was up 57 percent with $1,266,698. Both were record months. She said she is anticipating a business rebate this month brought the total down. She hadn't received a rebate summary as of Monday.

Businesses can qualify for a rebate of sales tax on invoices exceeding $2,500 for items that could be claimed as a business expense. Businesses have six months to request the rebate from the time of purchase, and rebates do not necessarily fall in the month when items were purchased.

Bentonville was up $1,204,799 or 11.9 percent overall in 12-month comparison. From February 2015 to January, the city received $11,278,143, compared with $10,073,344 during the same period from 2014 to 2015.

Springdale grew again this year after a big jump last year, said Wyman Morgan, administrator and financial services director.

The city saw a 7.9 percent increase this month. In January 2015, the city received $970,692, and this year the city received $1,047,853, a difference of $77,161.

"Last year this same month we were up 20 percent," Morgan said, pointing out the January number has risen about 28 percent in two years.

Springdale was up $1,074,583 or 9.3 percent overall in a 12-month comparison. From February 2015 to January, the city received $12,590,874 compared with $11,516,291 from 2014 to 2015.

Rogers had a 7.3 percent increase this month. In January 2015, the city received $1,259,776, and this year the city received $1,351,292, a difference of $91,516.

There have been 23 months of straight increases in month-to-month comparisons, said Casey Wilhelm, Rogers director of finance.

"The whole region is just strong," Wilhelm said, noting growth in other cities.

Rogers was up $1,317,984 or 8.9 percent overall in a 12-month comparison. From February 2015 to January, the city received $16,210,065 compared with $14,892,081 in the same period from 2014 to 2015.

Fayetteville also saw growth.

"2015 has been a very good year for economic activity in Fayetteville," said Paul Becker, finance director.

Growth last year meant this month should have been difficult to beat, Becker said.

Fayetteville had a 7.2 increase for January sales tax receipts. The city received $1,672,933 this month compared with $1,560,512 during the same period last year, a difference of $112,421.

Fayetteville was up $1,389,641 or 7.6 percent overall in a 12-month comparison. From February 2015 to January, the city received $19,794,654 compared with $18,405,013 during the same period from 2014 to 2015.

There are ups and downs in sales tax, Becker said.

"This year is an up (year), and we're very happy with that," he said.

NW News on 01/26/2016

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