NWA sales tax revenue soars in new report, up 17% in Springdale

Higher sales tax revenue is another sign of an improved economy across Northwest Arkansas as the year winds to a close. The region’s four largest cities reported cumulative revenue of $4.663 million in the December report. That represents a gain of 9% over the $4.277 million reported a year ago.

Springdale led the December improvement posting a 17% jump in sales tax thanks largely to the new Walmart Supercenter and other retail development this past year. Springdale reported $998,562 in revenue for December. Mayor Doug Sprouse expects that number will increase as the city continues to announce more development into 2015 and early 2016.

The reports from the cities reflect sales in October.

Along Don Tyson Parkway near the Interstate 49 exchange, Casey’s General Store is up with construction moving along ahead of schedule. Next door, dirt work for the new Neighborhood Market is already underway with the store expected to open in late 2015.

“We have been told that Sam’s Club could also open in late 2015, if things go as planned. Otherwise it will be early 2016. Sam’s will be another retail draw for the city,” Sprouse said.

He expects to have more announcements on the west side of I-49 when the city has completed its widening of 56th street from U.S. 412 down to Don Tyson Parkway. Sprouse said this expanded westside corridor should be done by the time Sam’s Club opens at U.S. 412.

“We are very pleased with the 17% gain this month, but it’s been a good year all along with an 8% rise for the year. We’re on the right path, we do have some catching up to do but we’re excited about what to expect in 2015 and beyond,” he added.

Bentonville finance director Denise Land said 2014 was a great year for the city, even though there were some ups and downs along the way. Bentonville reported December revenue of $881,492, a gain of 7.6% from the $819,262 reported a year ago.

“With this month’s collection, we have exceeded our budget of $9 million and still have one month to go,” Land told The City Wire.

The city also has several retail projects underway including a new Neighborhood Market  on Central Avenue and the Mid-Town Development just off the downtown square. Crepes Paulette, one of the most popular food trucks in the city, has applied for a permit for a permanent eatery at the Thrive Bentonville project, a multifamily complex under construction by ERC of Fort Smith near downtown.

In Rogers, sales tax revenue rose 6.8% in December with $1.225 million reported. Rogers Finance Director Casey Wilhem said the gains have been pretty consistent all year. She said the city has already exceeded its $14 million annual budget projections which she admits were conservative.

More retail development is underway in the Pinnacle Hills area of Rogers. Pei Wei Asian  and Haverty Furniture are already under construction in that area. Also in western Rogers near Pleasant Grove Road the retail strip center which will house at least two new eateries is slated for completion later this year.

In Fayetteville, sales tax revenue rose 6.8% in December, one of the best months the city has reported this year. Through September Fayetteville’s sales tax was trending below budget nearly 1% – the only city in this report to do so.

However the strong report in December, which reflects sales in October, indicate the city made up some ground as it added nearly $100,000 more to the coffer. The city reported tax revenue of $1.557 million, compared to $1.457 million in the year ago period.

City officials in Fayetteville told The City Wire last month they expected to make up the shortfall against the budget projections by year-end.

(Each of the cities collect a 2% tax on sales and services. That tax is remitted to the state and comes back to the city in revenue two months later. Half of that tax (1%) is used to repay debt and other 1% flows into the city operating budget. This report reflects the latter.)

SALES TAX REVENUE (January through October collections)
Bentonville
2014: $9.907 million
2013: $9.354 million
5.9%

Fayetteville
2014: $18.207 million
2013: $18.031 million
0.97%

Rogers
2014: $14.907 million
2013: $14.134 million
5.47%

Springdale
2014: $11.353 million
2013: $10.501 million
8.11%