Sales tax revenue in Northwest Arkansas mixed in January report

Consumers did their part in active spending in Northwest Arkansas in late 2018 which resulted in January sales tax revenue totaling $5.799 million among the region’s four largest cities. Revenue fell 29.44% from the prior-year period because of a decline in the Bentonville revenue from a record high in January 2018.

Excluding the Bentonville data, the region saw sales tax revenue rise 5.45% in January with Fayetteville, Springdale and Rogers reporting combined revenue of $4.683 million, compared to $4.441 million in the prior-year period. Bentonville’s January revenue totaled $1.116 million, down 70.47% from the record $3.778 million reported in January 2018.

Each city collects 2% local tax on the sale of goods and services. Half of that tax goes to retire debt and the other 1% flows into the respective city budgets. This report reflects the latter. The January revenue related to taxes collected in November creating a two-month lag in the data.

City officials have said they are pleased with sales tax growth in recent years. Bentonville’s revenue ran abnormally high in 2018 and city officials are not surprised to see the lower number to start 2019. Bentonville city officials budgeted for $11.1 million in sales tax revenue in 2018, and actual revenue totaled $16.488 million, a gain of 37.9% over the prior year. The January 2019 revenue for Bentonville represents solid gains over the 2017 revenue of $886,077.

Rogers reported January sales tax revenue of $1.567 million, up 2.66% from the prior-year period. This was a solid start to 2019 on the heels of a 5.89% revenue gain for all of 2018 when compared to the prior year. Rogers also reported the  2018 revenue was negatively impacted by rebates totaling $1.313 million. Rogers Mayor Greg Hines budgeted for $18.4 million in sales tax revenue this year, up 6.9% from 2018. The city budgeted for $17.2 million in sales tax revenue last year, with total receipts exceeding that at $19.238 million.

Fayetteville reported January revenue growth of 4.89% with total receipts of $1.867 million, compared to $1.78 million in the year-ago period. For all of 2018, Fayetteville reported sales tax revenue of $22.218 million, up 4.58% from the prior year. Mayor Lioneld Jordan recently gave his State of the City address highlighting some of the accomplishments from 2018 as well as outlining future plans for a 2019 proposed bond initiative that would be funded by renewing the city’s 1-cent sales tax voters approved in 2006. The package is expected to generate $226 million in additional revenue to be spent on multiple city projects. Debt retirement would take 12-15 years, the city said.

“This city is forever looking toward the future, never content with where it is, but rather, where it is going to be,” Jordan said during his address.

Jordan added in 2018 Fayetteville welcomed 327 new businesses creating about 1,000 new jobs.

Springdale reported the biggest gain in January sales tax revenue rising by 10.17% to $1.249 million, compared to $1.134 million reported in January 2018. This gain comes after 3.93% sales tax revenue growth throughout  2018. The city reported $15.045 million in sales tax revenue for 2018, ahead of the $14.718 million budgeted by the city for the year. This included $1.617 million in rebates. Looking to 2019, the city budgeted $15.560 million in sales tax revenue, projecting 5.72% year-over-year growth.

Following are businesses eyeing the region for locations in 2019.
• Eyemart Express, 2600 W. Pleasant Crossing Drive, Suite 60 in Rogers
• Verizon Store, 2204 Promenade Blvd., space 18000 in Rogers
• Saltgrass Steakhouse, J.B. Hunt Drive in Rogers
• Torchy’s Tacos, 1541 W. Martin Luther King Blvd., in Fayetteville
• U.S. Pizza, 7322 W. Sunset Ave., Suite A in Springdale