Sales tax revenue in four NWA cities up 9.32% in September report

by Kim Souza ([email protected]) 507 views 

The four largest cities in Northwest Arkansas reported cumulative sales tax revenue of $7.858 million in the September report, up 9.32% from the prior year and basically flat against the same period in 2019.

September sales tax revenue is generated from the local sales each city collected in July for goods and services rendered. The cities each allocate 1% of their local tax dollars toward their annual budgets and this report reflects that percentage. Other local taxes go to satisfy debt and are not included in this report.

The September revenue indicates a slowdown from the four prior months of double-digit gains over last year’s results. Rogers and Fayetteville each reported solid double-digit gains in September of 17.05% and 14.78%, respectively. Springdale showed gains of 9.75%. Bentonville’s revenue was down 4% from a year ago. But the city continues to see unprecedented gains in sales tax revenue this year, as this was the first month in 2021 where growth did not occur.

At $1.806 million in revenue reported this month, Bentonville has grown sales tax revenue by more than $500,000 compared to the same period in 2019. Through the first nine reports this year, Bentonville has added $15.766 million to its city coffers, a gain of 30.4% from the same period last year and 39.3% from the like period in 2019.

Rogers is finishing the year stronger than it started. Sales tax revenue for the September report totaled $2.038 million, up 17% from a year ago and up 19% from the pre-COVID period of 2019. Through the first nine months of reports sales tax revenue in Rogers totaled $17.469 million, ahead of the $15.314 million in the same period last year. That’s an annual gain of 14%. Compared to pre-COVID year of 2019 sales tax revenue has grown 16% through the September report.

Springdale reported sales tax revenue of $1.742 million in the September report, a gain of 9.75% from a year ago. Like the other cities in the region, sales tax revenue is also stronger than the pre-COVID year of 2019. For the first nine months reported this year Springdale tax revenue totaled $14.151 million, up 11.69% from the same period last year and 21.9% higher than the same period in 2019. Springdale has added $1.48 million more to its city revenue this year compared to the same nine months of 2020. Compared to the non-COVID year of 2019, the city has seen revenue growth of $2.54 million.

Fayetteville is also off to the races this year with higher than expected tax revenue growth. The September report showed revenue growth of 14.78% from the same month last year. Revenue totaled $2.303 million, up roughly $300,000 from the same time last year and up $500,000 from the like month in 2019.

Through the first nine months of reports this year Fayetteville’s sales tax revenue totals $19.886 million, better than the $17.257 million in the same period last year. When compared to the pre-COVID year of 2019, sales tax revenue growth to the city coffers totals $3.167 million. Fayetteville is on track for another record year of sales tax revenue growth outpacing the 4.65% gains last year, and the 1.68% annual growth from 2019.