Jonesboro sales tax collections up nearly 7% at midyear point

During the first six months of 2023, sales and use tax collections have remained better than all-time highs collected for the first half of any year and budget projections are even with what has been projected in Jonesboro and Craighead County.

The city collected $2.254 million in sales and use tax in June, a 5.8% ($122,658) increase as compared to the same month last year, according to records released by the city. This year the city has collected $13.296 million, a 6.8% ($841,789) increase when compared to the first six months in 2022.

One area that has been down compared to recent years is the yearly collections compared to the projected budget. For the year, the total amount collected is only $223 above what was projected.

Sales tax figures 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.

Northeast Arkansas’ hub city has a diversified workforce that has helped it to withstand national economic downturns in recent decades, according to officials. That diverse mix of jobs include healthcare, manufacturing, government, retail, agriculture and others. The city also is a hub for those in surrounding counties seeking healthcare, and Arkansas State University is the region’s largest university and employer.

Craighead County mirrored Jonesboro’s sales and use tax collection pattern. The county collected $2.53 million in June, a 10% increase from the previous June. For the year, the county has collected $15.056 million, which is nearly 8.5% ahead of the first six months in 2022.