Jonesboro and Craighead County continue strong sales tax receipt growth into 2017

Craighead County and its seat, Jonesboro, set all-time sales tax collection records in 2016. The trend accelerated during the first month in 2017, according to the city and county. Jonesboro tallied $1.488 million in city sales tax and use receipts in January, a 6.19% increase from the previous January. Craighead County collected $1.667 million, a 7.9% increase. Both totals are all-time records for collections in January in the county and city, according to figures released.

“I was kind of hoping the numbers would be good, but when I saw the 7.9% growth I just smiled,” Craighead County Treasurer Terry McNatt told Talk Business & Politics. “I get calls from around the state from people asking ‘How are you guys doing this?’ Right now, any guess would be speculation.”

Assessing why the sales tax receipts have been so positive during the last couple of years is a difficult task. Jonesboro Mayor Harold Perrin recently told Talk Business & Politics he’s asked the state to give more detailed information about which businesses and sectors are producing this sales tax growth.

Officials have ideas, but many are just speculative at this juncture, McNatt said. His office has studied patterns such as falling gas prices, weather trends, and others. Nothing they’ve looked at has proven definitive, he said. The area’s mix of retail, government, agriculture, manufacturing, food, and other jobs give the local economy a broad tax base, McNatt said.

Jonesboro is often referred to as the “Hub City” in Northeast Arkansas because many in the surrounding communities come to the city for healthcare, to shop, dine, and other activities. Some have suggested its unique geographic position, in the center of NEA and away from many of the other urban areas in the state give it an advantage. Jonesboro Regional Chamber of Commerce Executive Director Mark Young has said the city’s steady population growth during the last few decades is another reason why the economy has grown at a strong clip.

“I know it’s a cliche, but people in this area really work well together … many of our elected officials have a business mentality and a pro-growth mentality,” McNatt said. “I think that really helps.”

The city’s tax haul in January was better than all but one month in 2016, and the county’s was better than all but two months last year. In 2016, the city collected $17.326 million, a 4.43% increase from the previous year. Collections were down during only two months last year – March and June – and the downturn in those months was about 2% combined. Every other month showed positive growth.

Jonesboro’s tax growth as compared to its projected and budgeted growth in January was also higher. City officials projected the sales tax revenue to be $1.457 million, meaning it’s up 2.1% more than has been budgeted.

McNatt said his office will watch in the coming months as new numbers come in. The county treasurer wonders if other factors, such as holiday spending will impact sales tax receipts in the coming months. Credit card bills are now coming due, and it might eat into people’s disposable income.

“We’re going to keep an eye on it … we’re very blessed here,” he said.