Consumer spending in Northwest Arkansas rebounded in July pushing the September sales tax revenue report up 9.69% over last year among the region’s four largest cities.
Fayetteville, Bentonville, Springdale and Rogers reported cumulative sale tax revenue of $5.354 million in the monthly report, the best September on record for the region and second only to February revenue this year.
With the exception of Fayetteville, the other cities each posted double-digit gains in their September sales tax revenue when compared to the same month last year. September sales tax reflects a 2% tax for goods and services sold in July. Half of that revenue goes to retire debt and the remaining 1% flows into the cities’ budget. This report reflects the latter 1%.
September Sales Tax
• Bentonville: $978,254, up 14.55%
• Fayetteville: $1.728 million, up 5.6%
• Rogers: $1.448 million, up 10.38%
• Springdale: $1.199 million, up 11.18%
BENTON COUNTY GAINS
Through September the four cities report sales tax revenue totaling $58.716 million, which is up 9.48% from the same period last year. In the first nine months of 2016 the cities already surpassed the full-year tax revenue collected in 2015 by more than $4 million. Last year total revenue for the year was $54.547 million. The prior year total annual sales tax revenue was $52.547 million. Each city in this report is ahead of budget and in record territory for tax revenue collections in 2016.
Bentonville’s strong tax revenue in September reversed a 17.41% drop in August continuing the see-saw effect the entire year with respect to sales tax. Bentonville city officials budgeted $9.8 million in sales tax revenue for this year, which equates to roughly $816,670 each month. Through September the city budgeted cumulative revenue of $6.533 million, but actual revenue totals $7.993 million putting the city coffers $1.46 million ahead of budget with three months to go.
Retail investment continues with Bentonville officials approving large scale development plans earlier this summer for new retail and restaurant developments such as Urban Edge to be located on North Walton Ave., Core Brewery downtown on Main Street and a new development from Gild Corporation, parent of Guess Who and Macadoodles Liquor stores.The city approved a single story 13,050 square feet building that will include restaurant space and retail space. The second phase of the project will consist of a two-story 16,500 square feet building utilized for office and retail space, according to city records.
Retail development in Rogers continues to expand, boosting tax revenue to $12.919 million through September. The city budgeted annual collections of $15.264 million or about $1.27 million each month on average. Rogers has already received 84.6% of its annual budget projections through September, with three months to go. Historically, tax revenue in October, November and December grew by a minimum of $100,000 per month in each of the past three years.
City officials in Rogers recently approved Seven Brews pub which will be located at 2101 S. 52nd St., as well as Ozark Beer Company to be located at 109 N. Arkansas St. The Anime Cafe will be located at 124 W. Walnut St., and Fuzzy’s Taco Shop will open soon at 4204 S. J.B. Hunt Drive in western Rogers. Discount retailer’s Stein Mart and Ross will open next month in Rogers giving shoppers more options. It is the second store for Ross in Rogers.
RECORD COLLECTIONS IN WASHINGTON COUNTY
Springdale tax collections also are trending 18.3% higher this year reporting total revenue through September of $9.821 million, compared to $8.301 million reported a year ago. The city’s revenue is already 78.48% of the entire collections last year. While the city is losing its K-Mart store in mid-December, Mayor Doug Sprouse doesn’t see that having a major impact on sales tax as the city continues to add other retail establishments. The new Sam’s Club is already under construction just west of Interstate 49 and Highway 412, which is a stone’s throw from the new Arkansas Children’s Hospital well underway. Sprouse and city leaders expect more retail development to pop up in this western area around the hospital which is slated to open in January 2018. Sam’s Club should open in late 2017.
Fayetteville’s sale tax revenue through September totals $15.321 million, up 18.2% over the $12.961 million reported in the year-ago period. City officials expect a strong finish to 2016 with record fall semester enrollment again at the University of Arkansas and continued investment from multifamily and mixed-used to infill development like the new Taco Bell on Dickson Street.
Fayetteville’s sales tax revenue has been in record territory for the past three months with revenue above the $1.7 million threshold in each 30-day period. Revenue has been trending about $100,000 over last year’s results through the summer months and 2015 was a record year. Mayor Lioneld Jordan expects sales tax revenue for Fayetteville to set a set an annual record given the growth the city has seen in population and business investment in 2016.
SALES TAX REVENUE (January through September)
2016: $7.933 million
2015: $7.189 million
2016: $15.321 million
2015: $12.961 million
2016; $12.919 million
2015: $10.719 million
2016: $9.821 million
2015: $8.301 million