NWA sales tax revenue on the rise

Retail businesses across Benton and Washington counties are seeing a little more traffic with a 5.27% increase in sales tax collections during January when compared to the prior year.

The cities of Fayetteville, Springdale, Rogers, Bentonville and Siloam Springs together reported $4.27 million in sales tax collections last month. A year ago, the same cities collected $4.06 million.

January’s tax revenue reflects sales in November, remitted to the state in December, creating a two-month lag in the city reporting. Each of the five cities collects a 2% sales tax which is divided evenly between the cities’ general operating fund and the repayment of bonds.

Four of the five cities surveyed saw healthy increases in January tax revenue. However, Bentonville posted a 12.57% year-over-year drop.

Bentonville Mayor Bob McCaslin said despite a few negative months the city ended 2011 with $300,000 ahead of the annual budget. City officials expect the extra traffic related to the Crystal Bridges Museum of American Art to increase tax collection this year.

2012 TAX COLLECTIONS (January)
(Data represents a 2% sales tax collected by each city, compared to prior year period.)
Bentonville: $606,202, down 12.57%
Fayetteville: $1.37 million, up 8.82%
Rogers: $1.04 million, up 9.13%
Siloam Springs: $468,614, up 7.6%
Springdale: $793,108, up 9.13%
Source: Respective cities.

For the full year of 2011, the five cities collected $534.3 million in tax revenue, up 2.3% from 2010. Rogers led the region with the largest annual increase, collecting $12.1 million, up 6.7% from the prior year. Fayetteville reported its best year in tax collections since 2008, according to the city’s Finance Director Paul Beck. Fayetteville’s collections rose 4.52% in 2011 to $16.4 million.

The Springdale Chamber of Commerce said Wednesday, the city issued 330 new business licenses in 2011 giving the town a big step forward in retail venues.

Springdale’s 2011 collections totaled $9.88 million, up 2.15% from a year ago. Siloam Springs collected $5.73 million during 2011, down a fraction from the prior year.

FULL-YEAR TAX COLLECTIONS
Bentonville
2011: $8.322 million
2010: $8.496 million

Fayetteville
2011: $16.392 million
2010: $15.682 million

Rogers
2011: $12.102 million
2010: $11.342 million

Siloam Springs
2011: $5.732 million
2010: $5.745 million

Springdale
2011: $9.879 million
2010: $9.671 million