Sales Tax Revenue Climbs In All Four Big Cities

Sales tax revenue was up in the four largest cities in Washington and Benton counties -- for the month and year -- with Springdale topping the list.

Springdale sales tax revenue was $998,562, up 17 percent, compared to December 2013. Last year the city took in $852,789 in December, a difference of $145,773. For the calendar year, the city received $11,353,854 in sales tax revenue, up $852,582 from the $10,501,271 the city received in 2013.

Sales Tax Revenue For December

City*2013*2014*Percentage Change

Bentonville*$819,262*$881,492*+7.6

Rogers*$1,147,392*$1,225,950*+6.8

Springdale*$852,789*$998,562*+17

Fayetteville*$1,457,601*$1,557,435*+6.8

Siloam Springs*$240,104*$258,278*+7.6

Bella Vista*$121,912*$153,848*+26

Lowell*$223,174*$342,122*+53

Source: Staff Report

"This the first time since 2006, our benchmark year, that our December sales tax has exceeded 2006. The past six months of sales tax revenue have been very good. If the first six months of the year had been as good, we would have a really great year," said Wyman Morgan, Springdale administration and finance director.

"We have a new Neighborhood Market and a Sam's Club opening next year, which should increase our sales tax revenue. I think it has finally turned around for the city," he said.

The increasing sales tax revenue will allow the city leaders to do some projects they haven't been able to afford, Morgan said.

Rogers sales tax revenue for the month was $1,225,950, up $78,559 compared with the same period last year when the city received $1,147,392, a difference of 6.8 percent. For the calendar year, the city received $14,907,581 compared with $14,134,423 last year.

"We've had some good numbers this year, and this month is no exception," said Casey Wilhelm, Rogers finance director.

The city's tax revenue is up about 5 percent over the previous year, Wilhelm said.

"We budgeted for $14 million in sales tax revenue this year, and we exceeded our budget, which is very nice. We budget on the conservative side, but we anticipate getting more revenue than we budget for," Wilhelm said.

Fayetteville sales tax revenue was up 6.8 percent this month at $1,557,435 compared with $1,457,601 last year, a difference of $99,834. For the calendar year, Fayetteville received $18,307,726, up $276,289 compared with last year at $18,031,437.

"I was pleasantly surprised by our sales tax revenue this month. Springdale's sales tax revenue has been climbing, and that increases our county sales tax revenue. I'm happy with our numbers this month. I hope November and December sales tax revenue will surpass what we did last year," said Paul Becker, Fayetteville finance director.

Bentonville received $881,492 this month compared to $819,262 for December last year, an increase of $62,230, or 7.6 percent. The city also topped last year's 12-month total of $9,354,166 to $9,907,841 this year, an increase of $553,675.

"We had a great year in 2013, and good year this year, just not as good as 2013," said Denise Land, Bentonville finance director. "In the 2014 budget, I estimated sales tax revenue at $9 million, and we exceeded that, so we're in good shape."

Land raised the estimated sales tax revenue in 2015 to $9.6 million.

"I hope we can reach $10 million in tax revenue next year, but I not willing to bet on it in the budget," she said.

December sales tax revenue represents October sales collected in November.

Each city, with the exception of Bella Vista, collects 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, NWA Media tracks the 1 percent going into general funds.

NW News on 12/23/2014

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