Northwest Arkansas cities report stronger tax revenue to start 2015

The largest four towns in Northwest Arkansas continue to show improved sales tax revenue collections. The cities report $14.419 million in sales tax revenue collected in November, December and January, up 10.65% from the $13.031 million reported in the same period last year.

City finance directors are pleased with their revenue reported thus far in calendar 2015. 

Revenue reported to the cities in March was generated from the sale of good and services in January, and remitted to the state in February, creating a two-month lag in the reporting.

The March report shows the following collections for the four cities.
• Bentonville: $854,057, up 12.04%
• Fayetteville: $1.483 million, up 11.89%
• Rogers: $1.123 million, up 8.29%
• Springdale: $813,815, up 18.71% 

All of the cities collect a 2% tax on goods sold and services rendered. Half of that goes toward debt repayment and the remaining 1% flows into each city’s operating budget. 
This report reflects the latter 1%. 

City finance directors are pleased with their revenue thus far all noting revenue to date is above budget with healthy increases in each of the four cities. A temperate January across Northwest Arkansas compared to last year is likely one of the reasons for the solid year-over-year gains in the March report. That and fuel prices are some 40% cheaper than a year ago.

Revenue reported over the past three months was also strong across all four cities with Springdale leading the pack amid continued restaurant and retail growth in the city. Following is the cumulative revenue from the previous three months (November, December and January).
• Bentonville: $2.54 million, up 8.7%
• Fayetteville: $4.916 million, up 9.19%
• Rogers: $3.994 million, up 7.5%
• Springdale: $2.967 million, up 18.66%

City leaders have told The City Wire they expect 2015 to bring stronger sales tax numbers among lower unemployment numbers and fuel deflation which is putting extra money into consumer pockets.

Diane Swonk, chief economist at Mesirow Financial, said if oil prices stay low, gas savings throughout the U.S. economy could reach $300 billion this year. That’s about $550 additional dollars per two-car household. In the two-county area that’s more than $100 million based on the number of households noted in the most recent Census records.

POSITIVE OUTLOOK
While Springdale is playing catch-up with the other cities, Mayor Doug Sprouse expects sale tax revenue will be up incrementally through the summer. He expects another bump next year when Sam’s Club reopens a new Springdale location — a missing factor from the city’s tax base since 2006, when the retailer pulled up stake and moved to Fayetteville.

Foghorns recently opened a new Springdale restaurant and Panda Express is slated to open at 1087 N. 48th St., later this summer, according to permits on file with the Arkansas Department of Health.

Bentonville is looking forward to the opening of the Scott Family Amazeum July 15 which will bring more visitors to the city. The city is also getting more eateries in the coming weeks that could pull additional sales tax dollars into city coffers. The new restaurants include:
• Ramo d’Olivo – March opening;
• Oven and Tap – April 6;
• Smashburger -Mid April;
• Fresh Seafood Market – April 14; and
• Belfry Restaurant – Summer opening.

In Fayetteville, a Whataburger on MLK is now under construction, and Freddy’s Frozen Custard and Steakburgers have staked out locations on Salem Road in the West Wedington area of the city. The much anticipated Whole Foods shopping center is expected to open later this year. Raising Cane’s Chicken has already put permit work into action in the North College Avenue shopping center where Whole Foods will open.

Rogers is never outdone when it comes to attracting restaurants and retailers. The city will soon welcome Pei Wei Fresh Kitchen, Uncle Maddios Pizza, a new Haverty Furniture, and a Burlington Coat Factory at Pleasant Crossing near the Cavender’s that has relocated Rogers from Springdale.