Northwest Arkansas counties see sales tax growth

BENTONVILLE -- Sales tax receipts rebounded in Benton and Washington counties in May after a month of little or no growth.

"We bounced right back in May after some disappointing numbers in April," Washington County Treasurer Bobby Hill said.

About County Sales Tax

County sales taxes are collected by local merchants and sent to the state Department of Finance and Administration in Little Rock. The state then sends the counties and cities their share of the tax, which is divided among the county and cities on a per capita basis. The revenue received by the counties in May is from sales taxes collected in March.

Source: Staff Report

Receipts for May represent the revenue from each county's one percent sales tax collected in March.

For May, Washington County received $553,523, an increase of $29,588, or 5.35 percent, over the same month last year, Hill said.

"For the year to date, we're at 5.81 percent over last year. That's a $154,724 increase over last year," Hill said.

Brenda Guenther, Benton County comptroller, said that county's May sales tax receipts were $705,033, up from $632,340 in the same month last year. That's an increase of $72,693, or 11.5 percent, Guenther said. For the year to date, Benton County is about $265,000, or 8.7 percent, ahead of the same period in 2014.

Officials in both counties were pleased with the May receipts when compared to April's numbers. Benton County saw an increase of only $280 in April 2015 when comparing to the same month in 2014. Washington County saw its receipts in April 2015 fall below the April 2014 numbers by $17,802.

Washington County is on pace to exceed its projected budget target, Hill said. The county received about $6.2 million in 2014 and budgeted for a 1.3 percent increase. The county is 5.81 percent ahead of the 2014 revenue, he said.

"We're still looking good," Hill said. "If gas prices stay pretty stable through the summer and we don't have a crisis anywhere I can see no reason why the upward trend shouldn't continue."

Tom Allen, Benton County justice of the peace for District 4 and chairman of the Finance Committee, was pleased the county's revenue returned to an upward trend.

"I'd say it's outstanding," Allen said of the 11.5 percent increase. "That certainly makes up for last month's blip. That's a very good indicator. It shows that we are continuing to have a very strong year for our local economy."

Allen remains cautious about the county's finances. Benton County kept its sales tax projection at the same $7.3 million received in 2014.

"Unless we fall on our face we're going to have a surplus in sales tax revenue for the year," he said. "But we've got to be mindful of how we're going to spend it or invest it."

Joel Jones, Benton County justice of the peace for District 7 and chairman of the Public Safety Committee, agreed the county needs to guard its sales tax revenue carefully. He points to the discussion over a new courts facility that could cost the county about $24 million to build.

"We have a lot of decisions in front of us," Jones said. "Unless there's something critical at mid-year, I'd prefer to keep it in reserves."

NW News on 05/30/2015

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