Craighead County, Jonesboro Sales Tax Revenues Climb In September

The numbers were one-tenth of one percent off, but the result was the same.

Both Craighead County and the city of Jonesboro saw their sales tax numbers go up in September, with officials touting a stronger economy and people with more spending power.

For September – based on July 2015 numbers – Craighead County brought in $1,548,181.88 while the city of Jonesboro collected $1,388,430.71. Craighead County was up 6.83% compared to the same period in 2014, while Jonesboro was up 6.82%, the numbers showed.

Overall, both Craighead County and Jonesboro are showing increases in revenues year-to-date. So far this year, Craighead County has collected $13.4 million in sales tax, up $714,000 compared to the first nine months of 2014. Jonesboro is also up, bringing in $12.4 million so far this year. The number is about $600,000 more than what was collected in the same time in 2014.

Craighead County Treasurer Terry McNatt, D-Brookland said there have been a lot of positive factors leading to the increased revenues. He said lower gas prices, with gas as low as $1.85 a gallon in Jonesboro Thursday, have put a little more money into people’s pockets. Also, Mother Nature has helped with the good weather helping push construction. The county has seen increases in 14 out of the last 18 months, with three out of the last four months seeing positive construction growth.

County sales tax revenues were up 8% in June, down 1% in July and up 7.35% in August.

CITY NUMBERS
The city sales tax revenues have also seen increases over the past several months. Deputy Finance Director Mike Burrow said the city’s sales tax is up roughly 7%, compared to this time in 2014.

Burrow said while “Jonesboro is hanging in there”, having Arkansas State University in Jonesboro as well as retail growth has helped the city in a big way. Another aspect, Burrow said, is car sales.

“If the car business is doing well, then the sales tax is doing well,” Burrow said.

According to the Federal Reserve Bank of St. Louis’ Burgundy Book for the Memphis region, car dealers are benefiting from the situation.

“Anecdotal information indicates consumer spending was mixed. Several local business contacts reported sales slightly above 2014 levels in the second quarter while others stated business was flat. Multiple local auto dealers indicated relatively strong sales at the end of the second quarter and into the third quarter, attributing this growth to low interest rates and low gas prices,” the book noted.

Burrow said while food, including meat and beef has seen increases, he believes people are optimistic.

“People are feeling better about the economy. Plus, the employment numbers are doing well,” Burrow said.

Construction projects are also accelerating sales tax growth for the city. Earlier this month, Jonesboro Mayor Harold Perrin said the city had received nearly $12.4 million worth of building permits with the numbers even among commercial and residential projects.