Jonesboro sales tax collections decline year-over-year in June

by George Jared ([email protected]) 0 views 

Jonesboro experienced a decline in sales and use tax collections in June after an uptick in such collections during May. Craighead County had a similar growth and decline pattern for the same months.

The city collected $2.111 million in June, a 6.4% ($143,400) drop when compared to the same month last year, according to records released by the city. In May, the city collected $2.288 million, a 5.5% ($118,000) increase when compared to the same month in 2023.

Sales and use tax collections through the first six months of the year are slightly down from the same time period last year. The city is down 0.6% ($82,000) through June of this year. The city projected budgeted collections are down 0.8% for the year.

To date, the city has collected $13.214 million in sales and use taxes.

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 nexus for those in surrounding counties seeking healthcare, and Arkansas State University is the region’s largest university and employer.

Craighead County had a similar sales and use tax collections pattern.

The county collected $2.398 million, a 5.3% ($133,000) drop from the previous June, according to the Craighead County Treasurer’s Office. In May, the county collected $2.594 million, a 4.5% ($112,000) uptick from the same month in 2023.