FAYETTEVILLE - Sales tax revenue in Rogers and Bentonville increased by more than 5 percent this month compared with the same period last year, with Fayetteville and Springdale also showing positive increases.
Sales tax revenue received in December reflects October sales taxes remitted in November.
Comparisons are based on collections from the same month in the previous year. Each city levies a 2 percent sales tax. One percent is devoted to repaying bonds. The other 1 percent goes into each city’s general fund and is available for operations. The figures below only pertain to the 1 percent tax that supports the cities’ general funds.
Bentonville had the highest increase in revenue with a 5.85 percent increase over December 2012. Sales tax revenue for the month is $819,262, compared with $774,011 last year, a difference of $45,250. Figures have been rounded.
“Our sales tax revenue for the year is significantly higher than what we budgeted,” said Bob McCaslin, Bentonville mayor. “We budgeted for $8.7 million in sales tax revenue, and we’ve collected $726,000 more than what’s in the budget.”
Looking ahead, McCaslin said he is optimistic about growth of Bentonville’s economy.
“Our hospitality and hotel business is expected to increase with the opening of new hotels and restaurants scheduled for next year. We are also expecting more retail stores to open, which should increase our sales tax revenue,” McCaslin said.
Rogers’ sales tax for the month reached $1,147,392, an increase of $57,466 from a year ago when $1,089,925 was received, or an increase of 5.3 percent.
Rogers’ sales tax revenue has been on a steady increase since the last two months of 2011 when revenue began topping $1 million per month. City sales tax revenue continued to be in seven figures during all of 2012 and 2013, with each month’s revenue higher than the same month in the previous year,according to sales tax revenue spreadsheets.
Casey Wilhelm, city finance director, said Rogers topped 2012’s total by more than $1 million.
“The council and the mayor are pretty conservative when it comes to setting the budget. The budget for next year predicts our sales tax revenue will increase over this year, but not by much. I would rather budget revenue low and exceed revenue projections that have to explain why we missed the budget,” Wilhelm said.
Fayetteville’s sales tax revenue totaled $1,457,601 this month compared with $1,407,189 for the same period last year, an increase of $50,411 or 3.6 percent.
“We are continuing to do well,” said Paul Becker, Fayetteville’s finance director. “We surpassed our sales tax budget this year, and I think the economy will remain healthy next year.
Springdale’s December sales tax revenue of $852,789 was a 0.5 percent increase - $4,614 - more than the $848,174 city received in the year ago period.
Arkansas, Pages 12 on 12/26/2013