Northwest Arkansas sales tax revenue pullback continues through July report
Sales tax is an indicator of consumer spending on goods and services in communities. The cumulative sales tax revenue reported by the four largest cities in Northwest Arkansas in July totaled $9.533 million, down 9.28% from the year-ago period.
Bentonville, Fayetteville, Rogers and Springdale have seen their cumulative sales tax decline sequentially each month of this year with the gaps widening in the past three months. Year-to-date the cities’ cumulative sales tax revenue totals $64.692 million, down 1.18% with Bentonville leading the decline.
Bentonville’s monthly sales tax reported in July totaled $2.198 million, down 32.42% from a year ago making it the widest decline thus far in 2024. The city has seen sales tax revenue fall every month since February. Mayor Stephanie Orman said the city has seen rebates totaling more than $4.9 million in 2024, more than double the rate last year. Through July, Bentonville’s sales tax revenue totals $14.434 million, down 14.65%.
“On one hand all the investment we see in Bentonville is a positive for the city long term. We also budget conservatively on the back end for times like this and we have a sound financial outlook,” she said.
Fayetteville also saw lower monthly numbers in the July report with sales tax revenue of $2.654 million, down 2.82% from a year ago. Fayetteville also reports higher than expected rebates and city leaders are pleased with the ongoing investment throughout the city with three new hotels coming to the downtown area, including a Motto by Hilton to be located directly across from the Walton Arts Center on Dickson Street and West Avenue.
For the full seven months of reports, Fayetteville’s sales tax revenue totaled $18.528 million, up 0.4% from a year ago.
Springdale continues to see steady but slower sales tax revenue growth in 2024 with July numbers totaling $2.24 million, up 3.89% from a year ago. Mayor Doug Sprouse recently said the city’s growing population and continued investment by retail and restaurant operators have kept the sales tax revenue steady even as spending on good is down from pandemic highs. For the first seven months of the year, Springdale’s sales tax revenue totals $14.1 million, up 2.68% from the period in 2023.
Rogers reported revenue of $2.54 million in July, up 3.13% from a year ago. The city has seen revenue growth fluctuate for much of this year with the gains outpacing the declines most of the time. Rogers has rebates totaling $942,441 through June, up 13% from last year ,which has offset revenue gains. Sales tax revenue through the first seven reporting months totals $17.629 million, up 7.67%.
REGIONAL SALES TAX (January-July)
Bentonville
2024: $14.434 million
2023: $16.912 million
down 14.65% year-to-date
Fayetteville
2024: $18.528 million
2023: $18.453 million
up 0.4% year-to-date
Rogers
2024: $17.629 million
2023: $16,372 million
up 7.67% year-to-date
Springdale
2024: $14.1 million
2023: $13,731 million
up 2.68% year-to-date