Northwest Arkansas sales tax revenue up 7.54% in May report

by Kim Souza ([email protected]) 680 views 

The four largest cities in Benton and Washington counties reported cumulative sales tax revenue of $8.875 million in May, up 7.54% from the May 2021 report. Revenue reported in May reflects 1% of the local sales tax collected and reported by businesses in March.

Inflation is playing a part in the higher tax revenue. The consumer price index rose 8.3% from a year ago this month. Consumer prices rose 1.3% from April. Four the first five reporting months of the year, the four cities have collected $40.975 million, better than the $35.971 million in the same reporting period of 2021.

Fayetteville’s May revenue report totaled $2.507 million, down 2.86% compared to $2.581 million a year ago. In calendar 2022, Fayetteville reported $11.948 million in sales tax revenue, up from $10.834 million in the year-ago period. The annualized gain of 10.28% is ahead of the 7% annual growth the city officials predicted for the year.

Springdale reported its first-ever $2 million month with revenue totaling $2.004 million, up 15.94% year-over-year. For the first five monthly reports this year, Springdale had sales tax revenue totaling $8.934 million, up 20.7% from the same period last year, which did include stimulus.

Bentonville also had a stellar May report with sales tax revenue up 14.92% from the same month in 2021. The city had revenue of $2.108 million reported this month, which was also the strongest revenue figure reported by Bentonville in 2022. During the first five months of 2022, Bentonville reported revenue of $9.384 million, up 11.47% from a year ago.

Rogers reported strong sales tax numbers in May totaling $2.254 million, up 6.98% from a year ago. Again, the May numbers reflect taxes generated in March, creating a two-month lag in the reporting. Rogers city officials remain cautious as the year continues given the runaway inflation that will eventually have a crippling impact on consumer spending in the coming months. That said, the city also reports strong numbers in its restaurant and entertainment venues at this time.

The city reports total revenue through the May report to be $10.706 million, up 14.88% from the same period in 2021. Rogers has budgeted for total 2022 revenue of $22.5 million, up 13% from the prior year budget and $1.289 million less than revenue collected in 2021.