Cumulative sales tax revenue reported in March was up 13.97% for the four largest cities in Northwest Arkansas. Bentonville, Fayetteville, Rogers and Springdale reported total sales tax revenue of $7.642 million, with each city posting double-digit percentage gains.
Sales tax revenue reported in March is generated from a local 1% tax each city charged for the sale of goods and services in January. The revenue goes into the respective city’s operating budget. Through the first three month of reports in 2022, the four cities have collected $24.748 million in sales tax revenue, up 13.28% over the same period in 2021.
January revenue reported in March totaled $2.2182 million in Fayetteville, up 10.56% from the same month last year. The March report in Springdale showed sales tax revenue of $1.633 million, up 11.83%. The calendar year reports show Springdale sales tax revenue totaling $5.278 million in 2022, up 15.28% from the same period in 2021.
Rogers reported revenue of $1.853 million in January, up 11.87% from a year ago. It was also the best March report on record for the city that continues to experience growth in its retail sector. Through the first three month reports of this year, Rogers’ sales tax revenue totals $6.636 million, up 13.86% from 2021, a record year for sales tax revenue growth. Mayor Greg Hines said the city budgeted for a 13% annual increase in sales tax revenue this calendar year after budgeting for no increase in 2021.
Bentonville reported the biggest percentage increase in the March report with revenue rising 22.23% from the same month last year. January sales tax revenue reported this month totaled $1.973 million, a record March for the city. This calendar year through March, the city reports total revenue of $5.478 million, up 5.12% from the like period of 2021.
The National Retail Federation expects retail sales will grow between 6% and 8% to $4.86 trillion in 2022. This bodes well for city sales tax revenue growth which is also fueled by inflation.
“Most households have never experienced anything like this level of inflation, and it is expected to remain elevated well into 2023,” said NRF Chief Economist Jack Kleinhenz. “Although a roller coaster ride of incoming data is expected in the next few months, consumer fundamentals remain in place. Household finances are healthy and strong job and wage growth should support solid growth for consumer spending for 2022.”