Northwest Arkansas sales tax revenue rallies 9.87% in October, up 12.62% since 2014

Sales tax revenue was up 9.87% in October in Northwest Arkansas’ four largest cities compared to a year ago, putting the region on track for another record year.

Fayetteville, Springdale, Bentonville and Rogers reported a combined $5.521 million in sales tax revenue in the October report. It was the best October on record and the second highest total receipts this year for the respective cities. October sales tax reflects a 2% tax for goods and services sold in August. Half of that revenue goes to retire debt and the remaining 1% flows into the city budgets. This report reflects the latter 1%.

Bentonville reported the highest October revenue increase at 28.77% over a year ago. The city  has seen volatile swings in its month-to-month sales tax revenue and the $1.157 million reported in October is the second highest this year behind the $1.234 million reported in February.  On the slower end of the growth chart there is Fayetteville whose revenue grew just 2.07% in October. That said, the $1.771 million in revenue reported by Fayetteville was the best October on record for the city.

CITY COLLECTIONS
Following are the tax receipts (1%) for each city in the October report.
Bentonville: $1.157 million, up 28.77%
Fayetteville: $1.771 million, up 2.07%
Rogers: $1.431 million, up 6.43%
Springdale: $1.161 million, up 10.98%

With just two months left in 2016, city budgets are in good shape thanks to what has already been a record year of sales tax revenue in the four cities. In the past two years their overall sales tax revenue is up 12.62%, growing by $619 million since October 2014.

Fayetteville had a stellar year in 2015 with a 7.51% overall increase in sales tax revenue, the biggest in the city’s recent history. While the city continues to see growth, the rate has tapered in 2016. Fayetteville’s sale tax revenue through October totaled $17.093 million, up 5.12% year-over-year. While the growth is behind that of last year the city has added an additional $834,600 to its coffers from higher sales tax revenue. Mayor Lioneld Jordan said he expects a strong finish to 2016 with record enrollment at the University of Arkansas and continued investment from multifamily and mixed-used construction near the Northwest Arkansas Mall retail area. Fayetteville’s sales tax revenue has been in record territory for the past four months with revenue above the $1.7 million threshold in each 30-day period. Typical November and December revenue is strong in Fayetteville because of its large retail shopping district.

Historically, Springdale’s sales tax revenue has lagged other peer cities because of its lack of retail exposure. But continued investment from Wal-Mart Stores with a new supercenter on the west side of town, a new Neighborhood Market on Interstate 49 and the Don Tyson Parkway, and Sam’s Club under construction gives local residents more choices to shop at home. Mayor Doug Sprouse has said the Sam’s Club will make a big difference in overall sales tax growth when it opens next year. But that’s just the beginning of what will be a growth spurt for the western corridor as Arkansas Children’s Hospital Northwest, located in Springdale, opens late next year.

Through October Springdale has collected revenue of $10.982 million, up 6.43% over a year ago. In that time the city has added $664,000 more to its coffers than a year ago. Springdale, like Fayetteville, has a tough comparison from 2015, which was a record 10.22% growth rate from the prior year. City officials say they are ahead of budget and pleased with overall revenue.

Sales tax revenue in Bentonville through October totaled $9.151 million, up 2.4% from the $8.933 million reported a year ago. The city added $217,754 more this year from increased sales tax. With two months still to go, the city is only $649,000 away from its annual budget of $9.8 million. City leaders are excited about a full fall calendar of events which should bode well for sales tax revenue. The International Mountain Biking Association World Summit is slated for Nov. 10-12 and is a sold out event.

Kalene Griffith, CEO of Visit Bentonville, said between 500 and 700 biking enthusiasts are expected to attend. She said the entire Summit will be held in downtown Bentonville with the help of local businesses offering up meeting space. The region’s trail system will be the main feature. Griffith said guests are booked at 21C and a couple of other overflow hotels in the city.

The largest of the retail centers in the region is Rogers and the city continues to add new shopping venues with the recent opening of Stein Mart as well as a second location for Ross Stores in the southwest part of the city. The retail growth helped the city boost sales tax revenue to $14.351 million through October. City officials budgeted annual revenue of $15.264 million and with two months still to go, Rogers is at 89% of that goa. The city is $1.026 million ahead of last year’s revenue through October.

The retail shopping expansion has helped but city officials are equally proud of the efforts to expand its eateries and craft brewers. Seven Brews has been approved to locate at 2101 S. 52nd St., and Ozark Beer Company will be at 109 N. Arkansas St. Raisin Cane’s recently opened in Rogers as did Zoe’s Kitchen. Retail office expansion continues in the western part of the city and restaurants/retail are slated to go into several mixed-used projects now under construction.

SALES TAX REVENUE (January through October)
Bentonville
2016: $9.151 million
2015: $8.933 million
2014: $8.319 million

Fayetteville
2016: $17.093 million
2015: $16.257 million
2014: $15.186 million

Rogers
2016: $14.351 million
2015: $13.324 million
2014: $12.396 million

Springdale
2016: $10.982 million
2015: $10.318 million
2014: $9.370 million