February reports show Northwest Arkansas sales tax revenue up 3.19%

Consumer spending was up nationwide during the holidays, but that didn’t translate to big sales tax gains for the the four largest cities in Northwest Arkansas. Fayetteville, Bentonville, Springdale and Rogers cumulatively reported sales tax revenue of $6.254 million in the February report, up 3.19% from a year ago.

Three of the four cities saw positive year-over-year results with Rogers leading the way with a 15.65% increase in February revenue. Springdale and Fayetteville posted gains of 3.76% and 1.35%, respectively. Bentonville’s sales tax revenue declined 11.17% from a year ago. Mayor Bob McCaslin recently told Talk Business & Politics the city is accustomed to retail rebates relating to its largest employer having an impact on the tax revenue reports. He said the city budgets conservatively and expects modest growth in revenue this year.

February sales tax revenue is from goods and services sold in December. Each city collects a 2% local tax. Half of that goes to debt reduction and the remaining 1% flows in city operating budgets. This report reflects the latter 1%.

FEBRUARY SALES TAX REPORT (year-over-year)
Bentonville: $1.096 million, down from $1.234 million in February 2016 report
Fayetteville: $2.051 million, up from $2.034 million
Rogers, $1.932 million, up from $1,671 million
Springdale: $1.174 million, up from $1.131 million

Rogers budgeted $16.5 million in sales tax revenue for the year, which averages to $1.375 million each month. For the first two months of this year revenue is $691,000 ahead of budget.

Springdale continues to see growth in its sales tax revenue. February revenue is up 13.87% from the same month two years ago. City officials are bullish on the city’s prospects for growth this year thanks to development in the western corridor around the new Arkansas Children’s Hospital and new Sam’s Club, each slated for completion this year.

Fayetteville Mayor Lioneld Jordan recently gave his annual address to the city council outlining his plans for this year. Jordan expects modest gains in sales tax revenue in 2017 which will help pay for the implementation of his Fayetteville First Economic Plan. Jordan says the city will continue to pay down debt while also adding new infrastructure  and improving operations and technology applications across the city government.

Consumer sentiment readings for the month of December, which correlated with this month’s revenue exceeded analysts expectations. At 98.2 the index rose to its highest level since January 2004. Since that time the Michigan Consumer Sentiment moved higher to 98.5 in January,  but retreated to 95.7 this month in the preliminary reading.

SALES TAX REVENUE (January – February)
Bentonville
2017: $1.982 million
2016: $1.956 million
1.32%

Fayetteville
2017: $3.78 million
2016: $3.696 million
2.27%

Rogers
2017:$3.444 million
2016:$3.022 million
13.96%

Springdale
2017: $2.349 million
2016: $2.179 million
7.8%