Bentonville, Springdale push January sales tax revenue higher

Continued sales tax revenue growth is important to the burgeoning Northwest Arkansas region as the four largest cities have plenty of infrastructure expansion to fund in 2015 and beyond. Fortunately, the revenue continues to increase for the cities.

Revenue growth got off to a strong start in the January report as the cities of Bentonville, Fayetteville, Rogers and Springdale reported a total $4.633 million in sales tax collections, a gain of 10.4% from the year-ago period. The biggest portion of the gain came from Bentonville’s and Springdale’s double-digit growth over the same period last year.

Each of the cities collect an additional 2% sales tax on goods and services that is split evenly between debt repayment and city budgets. This report reflects the 1% revenue that’s funneled to each city’s operational budgets. January’s revenue reflects sales in November.

January Sales Tax
Bentonville: $845,573, up 24.33%
Fayetteville: $1.560 million, up 6.65%
Rogers: $1.249 million, up 1.16%
Springdale: $970,692, up 20.10%

2015 EXPECTATIONS
Bentonville Mayor Bob McCaslin said the city expects sales to grow in 2015 based on planned new business and restaurant developments. With that, McCaslin said the city will budget its expenses conservatively to maintain it’s strong fiscal balance sheet.

Several new restaurants have already staked out Bentonville for openings in the near future including Smashburger and a locally-owned Fresh Seafood Market downtown. Smashburger will open in April and the seafood market will open in mid-February.

Springdale has several new retail venues already open or coming soon to the city. Casey’s General Stores has built several new sites with the latest expected to open this spring at Don Tyson Parkway and Interstate 49. The Walmart Neighborhood Market next door to Casey’s is also expected to open later this spring or early summer. 

“The Walmart Supercenter and the new McDonald’s out on Elm Springs Road are both doing very well and boasting our numbers each month,” said Springdale Mayor Doug Sprouse.

He’s also excited about other new businesses like CVS Pharmacy, Sam’s Club and Foghorns Chicken which are also opening this year. 

Fayetteville tax revenues were just under the budgeted amounts over the past 12-month period falling short 0.06%, according to city records. That said, the tax revenue collected in the city rose 2% for the 2014 reporting year compared to 2013.

Jeremy Pate, director of the city’s development division, said the new Whole Foods is slated to open this fall and the city also approved plans for the Raising Cane’s Chicken restaurant that will go next door to the retail store. Pate said the city also just approved a new bar and restaurant on Block Ave, near the square. He said the Big Star Pub owner is Archie Shaffer IV, who also owns King Fish and co-owns Flying Burrito.

There are several new eateries planned to open in Rogers in 2015 as well as another Neighborhood Market near the downtown area. Casey Willhelm, finance director for the city of Rogers, recently said sales tax growth in 2014 was steady at 4.24%, rising $605,520 from the prior year. The city grew its tax revenue each month last year except for February and March, when collections ran slightly behind the prior year.

January revenue was the strongest number to start the year in city history at $1.259 million.

Willhelm said the Walmart AMP and its entertainment shows are likely to help boost sales tax numbers again this spring. She expects Rogers to keep the steady and conservative growth numbers going throughout this year.

2014 TAX REVENUE (12 months)
Bentonville
2014: $10.073 million
2013: $10.103 million
0.3%

Fayetteville
2014: $18.404 million
2013: $18.043 million
2%

Rogers
2014: $14.892 million
2013: $14.286 million 
4.24%

Springdale
2014: $11.516 million
2013: $10.469 million
10%