BENTONVILLE -- Officials in Benton and Washington counties said a double-digit percentage increase in sales tax revenue for March is a positive sign for Northwest Arkansas' economy.
Benton County's sales tax receipts for March, which represent taxes collected in January, were up by 17 percent over the same month last year. For the first quarter of the year overall, Benton County is up by 10.6 percent, according to Brenda Guenther, comptroller. The county's sales tax revenue for the year is more than $190,000 greater than the first three months of 2014, Guenther said.
Washington County reported an 11.5 percent increase this month over March 2014, said Treasurer Bobby Hill. For the year to date, Washington County is up 8.8 percent, having collected $142,938 more this year than in the same period last year.
"That is a $58,527.60 difference," Hill said of the March tax report. "This is the 12th consecutive month of growth in sales tax, and it's the best March showing since 2010."
The continued low price of gasoline, when compared to 2014, and new construction seem to be boosting the economy, Hill said.
"I still think it has a lot to do with gas prices," he said. "People have more money to spend. I am noticing a lot of construction, which means more jobs and more people spending money."
Washington County projected a 1.3 percent increase in its sales tax revenue for 2015, so the 8.82 percent increase so far is welcome news, Hill said.
"I would take that in a minute." he said.
Benton County officials were more cautious about their 2015 revenue projection, keeping the budget at the same $7.3 million budgeted in 2014. Benton County's revenue fluctuated throughout 2014.
Tom Allen, justice of the peace for District 4 and chairman of the Finance Committee, said the Quorum Court probably will wait for a few more months before reviewing the budget projection. The justices of the peace have to be mindful of several major projects the county is considering, Allen said.
"We certainly can use the money," he said. "We've got the War Eagle Bridge project. We've got the courthouse project, and we're potentially looking at a jail expansion project. We've got plenty of places to put new money."
If the budget projection is unchanged any additional revenue will simply go into the general fund, Allen said. The Quorum Court has typically reviewed revenue and spending in mid-year, Allen said.
"A prudent person, knowing you're receiving more money than anticipated, you need to plan what you're going to do with it," he said."The jail project was not budgeted. War Eagle Bridge was not budgeted. The courthouse project we've got two estimates at $24 million to $26 million. We don't have that in the bank."
NW News on 03/26/2015