Craighead County, Jonesboro see huge jump in sales tax collections

Craighead County Treasurer Terry McNatt said Monday the increase in sales tax revenues in April was needed after a slower than normal March.

By contrast, Craighead County saw its largest sales tax collection for the month of April in the past decade, while Jonesboro followed suit with a 13% jump at the same time, officials said Monday (April 25).

The Craighead County one-cent sales tax brought in $1.621 million in April – a 14.35% increase over the same period in April 2015. The Jonesboro one-cent sales tax collected $1.458 million in April, up $169,930 over April 2015.

Last month, the county sales tax brought in $1.364 million – up 0.32% from the same time in March 2015. The city sales tax brought in $2.192 million last month, down about a quarter of a percent over the same period.

Both McNatt and Jonesboro Finance Director Suzanne Allen were at a loss for words as to why the April increase in revenue happened. When pressed for a reason, both Allen and McNatt said the arrival of tax refunds may have put spending money into the pockets of residents. Another impact may involve construction, McNatt said.

A 300-home subdivision is being built in Brookland, with crews working around the clock to build homes, McNatt told Talk Business & Politics. McNatt said the construction of the homes and several other subdivisions meant crews buying goods as well as spending money on basic necessities.

“From the last time we talked, I noticed that they already have three houses framed in the subdivision,” McNatt said. “Those folks have really been working.”

The county sales tax has brought in $6.492 million so far this year, up about $400,000 compared to the first four months of 2015. The city sales tax has brought in $5.904 million so far this year, up $271,791 compared to the first four months of 2015.

Both said gas prices so far have not appeared to cause an impact on collections. The gas prices in Jonesboro Monday (April 25) were in the $1.85 to $1.95 per gallon price range, up from levels earlier this year closer to the $1.50 mark.

McNatt said while it appears the overall economy is still fragile, people are willing to spend money.

“It has been a major blessing,” McNatt said of the increased revenues. “I mean, there is a lot of traffic every day in this town.”