Northwest Arkansas sales tax growth rose 12.84% in 2022

by Kim Souza ([email protected]) 927 views 

The four largest cities in Northwest Arkansas combined for a record $102.686 million in sales tax revenue during the 12 reporting months in 2022, up 12.84% from 2021. It was the second highest growth rate for the combined cities and the highest amount in history.

The increase was attributed in part to inflation and the overall continued population growth in Benton and Washington counties, according to city officials. Over the past decade, the two-county area has grown its population from 446,834 in 2012 to 548,125 at the end of 2022, according to the U.S Census Bureau. In that same decade, sales tax revenue has more than doubled from $50.071 million to the $102.686 million noted in the December report.

December’s report reflects October transactions.

Springdale had total monthly revenue of $2.016 million, up 24.82% from the year-ago period. Mayor Doug Sprouse said the growth is somewhat tied to higher prices, but at nearly 25% the city’s growth rate is well above the boost it gets from higher prices. He remains somewhat cautious about growth in 2023 and said the city has adequate reserves to weather an economic slowdown should it occur.

Bentonville reported monthly revenue of $1.972 million, up 25.78% from the prior year-period. The December report also reversed 36.88% revenue declines reported in November and 4.78% declines reported in October. Rogers reported monthly sales revenue of $2.327 million in December, up 8.66% from the month last year. Fayetteville had monthly revenue of $2.579 million in the December report, up 7.65% from the same month in 2021.

For the 12 months reported in December, Rogers had total revenue growth of 12.97%, slightly below the record growth rate of 15.6% reported in December 2021. Rogers had total 2022 revenue of $26.875 million, a 12-month record. The stellar revenue growth was somewhat fueled by price inflation but Mayor Greg Hines said consumers were eager to get out and enjoy experiences in 2022 with savings they had accumulated amid the shutdown. Over the past decade, Rogers has grown sales tax revenue from $13.136 million to $26.875 million as of the December 2022 report.

Bentonville reported annual revenue of $22.785 million in the December report, up 8.77% from the year-ago period. Bentonville has seen its annual sales tax revenue growth from $9.265 million to $22.785 million from year-end 2012 through 2022.

Fayetteville reported annual revenue of $29.963 million in calendar 2022, up 10.49% from the year-ago report. It was a record year for Fayetteville in terms of total dollars collected, but was shy of the record growth rate of 14.7% the city achieved in calendar 2021. Over the past decade, Fayetteville has grown its sales tax revenue to $29.963 million in 2022 from $17.46 in 2012.

Springdale added $23.061 million to its coffers, up 20.46%, and also the best year on record for the city. Over the past decade, Springdale has seen its sales tax revenue growth from $10.219 million to $23.061 million.