Jonesboro, Craighead County on pace to shatter last year’s sales tax collections records

Momentum is a key ingredient to the success of any organization, and the most populous city and county in Northeast Arkansas are once again collecting sales tax receipts at an historic rate. Craighead County collected $5.161 million in county sales tax through the end of March, more than 5.9% higher than the $4.870 million collected through the first three months of 2016, according to the Craighead County Treasurer’s Office.

In March, the county reported $1.493 million in sales tax collections, about $100,000 more than was tallied the previous March. Since 2007, the only time more was collected in March was $1.507 million received in 2012.

Craighead County’s seat, Jonesboro, has also been on a torrid tax collection streak. The city collected $4.603 million in 2017, about 3.5% more than in 2016 during the same timeframe. March’s sales tax tallies topped $1.332 million, a nearly 7.6% increase from the previous March. The targeted budget projection for the city sales tax receipt collections are up a little more than 1% for the year, or $21,227.

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.

Craighead County collected $19.372 million in county sales tax in 2016, a 5.2% increase from 2015. The total is also an all-time mark in the county. Since 2010, the county’s sales tax receipts have grown from $15.599 million, a 24% spike.

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 Northeast Arkansas and away from many of the other urban areas in the state, gives it an advantage.

Officials have ideas as to why the area continues to experience unprecedented growth. Agencies have studied patterns such as falling gas prices, weather trends, and others, but nothing has proven definitive. The area’s mix of retail, government, agriculture, manufacturing, food, and other jobs give the local economy a broad tax base. Jonesboro is unusual in the fact that it has had sustained and methodical population growth. The city has averaged increasing its population by 3% every year since the 1970s. It currently has an estimated 77,000 residents.

Unemployment numbers in the city and county did slightly rise to start the year. Craighead County had an unemployment rate of 3.4% in January, a four-tenths of a point increase from December, according to the U.S. Department of Labor. The number of employed workers fell less than 1% to 49,541. Economists attribute some fluctuations in employment numbers during these months to seasonal jobs ending, a major sector in Craighead County and in the Jonesboro metro.

Jonesboro experienced a nearly identical employment trend. The city’s unemployment rate rose three-tenths of a point in January to 3.3%. The number of employed workers fell a little more than 1% to 34,827. The city and county employment numbers are still better than the state and national averages. The numbers are also slightly better than when compared to January 2016.