Jonesboro continues record sales tax collection streak, but overall projection is slightly down for year

Sales and use tax collections slightly dipped during the month of May in Jonesboro. The city collected $2.17 million during the month, a 1.4% ($31,000) drop from the previous May.

It followed the month of April when the city collected $2.076 million, a 10% ($188,000) increase from April of 2022. For the year, the city has collected $11.042 million, a 7% ($719,000) uptick from the previous year. It’s the first time the city has surpassed $2 million in each of the first five months to start the year.

The volume of collections may still be at a record-setting pace, but the projected collections are slightly down for the year when compared to what city officials have budgeted.

For the month of May, the projected budgeted amount was down 6.1% ($140,000). In April it was up 6.3% ($123,000). Year to date, the city is down 0.2% ($26,000) when compared to projected collections.

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 mirrored Jonesboro’s sales and use tax collection pattern. The county collected $2.48 million in May, a less than 1% ($27,000) drop from the previous May. For the year, the county has collected $12.525 million, which is nearly 7% ahead of the first five months in 2022.