Sales tax collections down in Jonesboro, Craighead County to start year

Sales and use tax collections dropped in Jonesboro, and Craighead County experienced a significant drop in January when compared to collections during the same month the previous year.

In January, the city collected $2.13 million, a 7.7% ($178,619) decline when compared to January 2024, according to data released by Jonesboro City Hall.

When compared to budget projections, collections were down 4.4% ($105,473). The reduction comes after the city was slightly down in terms of collections the year before.

The city collected $26.16 million in 2024, a dip of 0.4% ($98,780) when compared to 2023. The city missed its projected budget by 4.1% ($1.1 million) last year, despite the fact it was the second most ever by the city.

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 health care, manufacturing, government, retail, agriculture and others.

The city also is a nexus for those in surrounding counties seeking health care, and Arkansas State University is the region’s largest university and employer.

Craighead County had a slightly larger dip in collections. The county collected $2.43 million in sales and use taxes last month, a 9.1% ($238,000) decline from the previous year.