Jonesboro’s sales and use tax collections down 4.5% in February

Nearly every month for almost a decade Jonesboro’s sales and use tax collections have outpaced the same month from the previous year and that has led to unprecedented growth with records being set each year. The city’s collection streak declined in February, however.

The city collected $2.57 million during the month, a 4.5% ($118,485) drop from the same month in 2023, according to city records. For the year, the city has collected $4.834 million, which is still 1.4% ($64,987) ahead of the collections pace during the first two months of last year.

Despite the drop in sales tax collections, the city’s predicted budget is still ahead of projections. The budgeted figures for last month were only off by 0.8% ($19,566). Through the first two months this year collections are 2% ahead of what was budgeted.

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 collected $2.833 million during the month of February, about $114,000 less than it collected during the same month last year. To date, the county has tallied $5.5 million in sales and use tax, slightly ahead of its pace last year.