Craighead County, Jonesboro See Sales Tax Drop

After several months of increases, the sales tax revenues for Jonesboro and Craighead County saw large drops for May, according to figures released this week.

The city of Jonesboro brought in $1,295,700.07 – nearly $85,000 or 5% lower than the same time in May 2014.

Meanwhile, Craighead County had a 3% drop or about $45,000 during May, bringing in $1,469,628, compared to the same time in 2014.

Overall, the county’s sales tax has brought in nearly $7.6 million so far this year, a 43% increase over last year.

Craighead County Treasurer Terry McNatt said the drop in revenues this month may have something to do with gas prices going up.

The gas prices at several Jonesboro gas stations were in the $2.35 to $2.40 price range Tuesday, up from several months earlier.

McNatt said he believes the increased prices have created a mindset.

“It does not take much to modify someone’s (spending) behavior today,” McNatt said, noting people may be trying to save money for future needs or basic necessities.

Another possible reason involves the continued rains in Northeast Arkansas.

With rains muddying fields, farmers cannot work on their crops. And if farmers cannot work in their fields, they cannot spend money and pay sales tax, McNatt said.

In looking at the numbers Tuesday, McNatt said he found an interesting pattern.

Since 2008, the county’s sales tax numbers in May, compared to the year before, have been a proverbial yo-yo.

In even-numbered years, the county has seen increases, sometimes double-digits, while in odd-numbered years, the county has seen drops, McNatt said.

The county saw a 5.34% increase in 2008, an 8.15% increase in 2010, a 10.75% increase in 2012 and a 5.65% increase in 2014.

The numbers were down about 3% in 2009, about 5% in 2011 and about 2.5% in 2013, the numbers showed.

McNatt had no explanation as to why the numbers fluctuated, but said people are normally creatures of habit.

McNatt also said he is optimistic that the good numbers will return, especially with the announcement of two major expansions in Jonesboro – a $12 million expansion at Hytrol Conveyors and a $45 million expansion at Frito-Lay.

“It is a good thing. Hopefully, we will get some sun outside and the fuel prices will go down,” McNatt said.