Sales tax revenue dips 5.3% in Northwest Arkansas

by Kim Souza ([email protected]) 231 views 

Sales tax revenue cumulatively reported by Bentonville, Fayetteville, Rogers and Springdale totaled $8.852 million in the June report, down 5.31% from a year ago. Revenue for the four cities in the first six reporting months totals $55.159 million, up 3.6% from last year.

Bentonville continues to see lower year-over-year revenue which is why the cumulative number was down again in the June report. At $1.719 million, Bentonville’s sales tax revenue fell 28.31% from the year-ago period. It was the widest decline of any month thus far in 2024.

Rebates are partly to blame for the sales tax revenue decline from incentives paid to businesses located in Bentonville. The city does not disclose the rebate data in the report. Year-to-date, Bentonville reports sales tax revenue totaling $12.235 million, down 10.4% from the same period in 2023.

The other three cities in the report had positive growth in the June report. Rogers led with a 4.19% increase in sales tax revenue of $2.407 million. In 2024, the city has posted monthly ups and downs, but for the full six months, revenue totals $15.089 million, up 8.48% from the same period last year. Rogers does disclose rebate data in their report and year-to-date results include rebates of more than $854,000 through May.

Springdale reported sales tax revenue of $2.046 million up 2.24% from the year-ago period. For the first half of the year, Springdale reports revenue totaling $11.96 million, up 2.47% from a year ago. City leaders said the slowdown was expected and the city has budgeted accordingly.

Fayetteville, the largest populated city in the region, reported sales tax revenue of $2.68 million, up 1.54% from a year ago. The city has seen weaker sales tax revenue growth compared to the past four years. For the first half of 2024, Fayetteville reports sales tax revenue of $15.873 million, up 0.96% from the same period last year. Growth is slower than expected by city leaders who had budgeted for around 4% growth this year.

REGIONAL SALES TAX (January-June)
Bentonville
2024: $12.235 million
2023: $13.658 million
2022: $11.527 million
2021: $10.45 million
2020: $7.645 million

Fayetteville
2024: $15.873 million
2023: $15.722 million
2022: $14.436 million
2021: $13.16 million
2020: $11.296 million

Rogers
2024: $15.089 million
2023: $13.909 million
2022: $12.912 million
2021: $11.289 million
2020: $10.068 million

Springdale
2024: $11.96 million
2023: $11.671 million
2022: $10.789 million
2021: $9.046 million
2020: $8.171 million