Jonesboro sales tax collections jump in April, third month of 20 percent growth
Inflation, lingering supply chain issues, the aftermath impacts of the pandemic and other factors may have a dampening effect on the economy in Northeast Arkansas in 2022. But consumers continue to spend record amounts of money in Jonesboro and Craighead County if sales and use tax receipts are an indicator.
During the month of April, the city of Jonesboro collected $1.427 million in sales and use taxes, a 21.6% ($253,518) jump from the same month in 2021, according to records released by the city. It’s the third time this year that monthly collections grew by 20% or more when compared to the previous month in the previous year.
For the year, the city has collected $6.434 million, a 16.9% ($930,684) uptick from the same four months in 2021. When compared to the budgeted projections, it’s about 8.2% ahead of predicted pace.
Sales tax numbers lag by 60 days meaning the numbers released were collected two months prior. Economists consider sales tax collections as a leading economic indicator, one that can show how a local economy can be expected to perform in the short-term.
The collections period typically cuts off during the last week of the month depending on how the calendar days fall.
Craighead County’s sales tax growth during the last year may be more impressive than Jonesboro’s. The county collected $2.020 million during April, a 20% ($337,477) increase from the same month in 2021. For the year, the county has collected $9.107 million in sales and use tax, a 16% upswing when compared to last year.
April marked the 12th month in a row that the county’s collections topped $2 million or more, something the county has never done. The first four months of 2022 mark the first-time that every month has topped $2 million in collections.
The first time the county ever collected $2 million or more in sales and use tax was February 2018, according to the Craighead County Treasurer’s Office.