Regional sales tax collections continue growth; Booneville sees decline

November county sales tax collections in Crawford, Franklin, Logan and Sebastian counties totaled $3.42 million, up 9% over collections in the same period in 2007, according to figures from the Arkansas Department of Finance & Administration.

Despite thousands of regional layoffs in the past six months and a national recession, sales tax collections in the region continue to post increases — double-digit growth in some cities and counties.

“I’m astounded and pleasantly surprised that our tax receipts are up,” said Rusty Myers, director of economic development for the Western Arkansas Planning & Development District.

He said it will be interesting to see if declines in growth appear as the national recession filters into Arkansas.

Booneville was one city that did see a decline in November sales tax collections, posting $94,626 in the month, or 15.1% below collections in November 2007. The city’s collections January-November are up 6.6% over the same period of 2007.

Myers said it is “fair speculation” to consider that some of the collection decrease in Booneville is related to the loss of more than 800 poultry processing jobs in that city,

The jobs were lost following a March 2008 fire that destroyed most of the 150,000-square-foot Cargill meat processing facility. The company decided not to rebuild the plant. An analysis by the University of Arkansas Center for Business and Economic Research in Fayetteville estimated the payroll loss at $18.3 million, with the loss of 800 jobs having a potential multiplier affect of 1,806 jobs lost in Logan County.

Logan County posted a 7.8% decline in November sales tax collections ($154,417) compared to November 2007 ($167,555) collections. However, Logan County collections January-November are $2.39 million, up more than 34% over the same period in 2007.

Ozark continues to post the biggest percentage gains in monthly sales tax collections among regional cities. That city had $80,087 in November 2008 collections, up 36.1% compared to November 2007. For the first 11 months of 2008, the city’s collections were up 19.6%.

Susan McIlroy-Stokes, director of the Ozark Area Chamber of Commerce, has suggested some of the boost is from local merchants being more aggressive in pulling Interstate 40 traffic into the community.

REGIONAL SALES TAX COLLECTIONS
Top 10 cities – sales tax collections in the region

Fort Smith
November 2008: $3,445,231
November 2007: $3,222,957
up 6.8%
collected $38.87 million Jan.-Nov., up 10.6% over the same period in 2007.

Van Buren (Van Buren’s sales tax rate dropped 1% in April 2008)
November 2008: $334,734
November 2007: $440,358
collected $4.34 million Jan.-Nov., down 14.7% over the same period in 2007.

Alma
November 2008: $202,764
November 2007: $168,174
up 28.2%
collected $2.23 million Jan.-Nov., up 20.9% over the same period in 2007.

Greenwood
November 2008: $161,678
November 2007: $143,043
up 13%
collected $1.78 million Jan.-Nov., up 15% over the same period in 2007.

Booneville
November 2008: $94,626
November 2007: $111,520
down 15.1%
collected $1.11 million Jan.-Nov., up 6.6% over the same period in 2007.

Ozark
November 2008: $80,087
November 2007: $58,815
up 36.1 %
collected $831,046 Jan.-Nov., up 19.6% over the same period in 2007.

Mansfield
November 2008: $29,685
November 2007: $26,540
up 11.8%
collected $332,972 Jan.-Nov., up 11.5% over the same period in 2007.

Mulberry
November 2008: $20,555
November 2007: $23,368
down 12%
collected $298,422 Jan.-Nov., up 1.3% over the same period in 2007.

Paris
November 2008: $25,720
November 2007: $23,604
up 8.9%
collected $280,011 Jan.-Nov., up 13.6% over the same period in 2007.

Charleston
November 2008: $26,272
November 2007: $21,499
up 22.2%
collected $276,470 Jan.-Nov., up 13.2% over the same period in 2007.

Collections by Fort Smith regional counties

Sebastian County
November 2008: $2,485,737
November 2007: $2,291,243
up 8.9%
collected $28.13 million Jan.-Nov., up 11.2% over the same period in 2007.

Crawford County
November 2008: $553,457
November 2007: $496,800
up 11.4%
collected $6.39 million Jan.-Nov., up 12.8% over the same period in 2007.

Franklin County
November 2008: $227,102
November 2007: $181,616
up 25%
collected $2.62 million Jan.-Nov., up 23.8% over the same period in 2007.

Logan County
November 2008: $154,417
November 2007: $167,555
down 7.8%
collected $2.39 million Jan.-Nov., up 34.7% over the same period in 2007.