Northwest Arkansas sales tax revenue growth slows to 3.13% in recent reports

The four largest cities in Northwest Arkansas had combined sales tax revenue of $10.367 million in their February reports, up 3.13% from the year-ago period. Bentonville, Fayetteville, Rogers and Springdale each collect local tax on the sale of goods and services.

Three of the four cities had slightly positive growth in the February report. Bentonville has posted 14 consecutive months of double-digit growth through the January report, but the streak ended as the city posted revenue of $2.409 million, down 2.94%. So far in 2024, Bentonville’s reported sales tax revenue totals $4.567 million, flat against the same period last year.

Bentonville Mayor Stephanie Orman said the state of the city is very strong as more people choose to live, work and play there. She was not concerned about the slower start to 2024, noting the city is resilient.

Rogers’ sales tax revenue rose 9.64% to $2.87 million from a year ago. The growth reverses flatter results of the two previous reports. Rogers is one of two large retail centers in the region with destination retail such as Bass Pro Shops and entertainment venues like Topgolf and Dave and Buster’s. Year-to date, Rogers reports sales tax revenue of $5.207 million, flat to a year ago.

Fayetteville is the other large retail center in the region and the largest by population when counting the students at the University of Arkansas. Sales tax revenue in the recent report was $2.943 million, up 1.65%. A year ago, the city reported revenue growth of 7.27%. Year to date, Fayetteville reports total sales tax revenue of $5.624 million, also flat with a year ago.

The City of Springdale is off to a steady start with December spending pushing sales tax revenue up 4.28% to $2.144 million reported in February. This compares to gains of 5.63% in the January report and declines of 2.53% reported in December.

Mayor Doug Sprouse said consumers are spending more on necessities leaving less money for eating out and discretionary purchases. He was pleased with the results reported this month, which reflect December purchases. He said most families will spend ahead of Christmas and other special occasions. He expects slower growth this year and budgeted more conservatively, while also noting the city is in strong fiscal shape. Year-to-date revenue for Springdale is $4.179 million, up 1% from the same period last year.