NW Arkansas tax revenue rises

Growth in region credited to economy, population increase

FAYETTEVILLE -- Increasing sales tax revenue is a reflection of Northwest Arkansas' strong economy and is likely to continue for the foreseeable future, according to a University of Arkansas economist.

"We are in our 101st consecutive month of [national] economic growth," said Mervin Jabaraj, interim director for the Center for Business and Economic Research. "That's just a few months away from being the second-longest ever. As long as the economy chugs along nationally, Arkansas and Northwest Arkansas should continue to do well."

Jabaraj said other economic indicators, including the state unemployment rate, are also positive. He said Arkansas has had several large manufacturing announcements, mostly linked to overseas markets.

"Those kind of announcements bring jobs and pay taxes," he said. "A weaker dollar has pushed exports up, and in the past year or so, most of our trading partners have done well."

Sales tax revenue is up in Northwest Arkansas' four largest cities and Benton and Washington counties.

Bentonville Mayor Bob McCaslin and officials in other cities credit the increase to the area's growth. Bentonville has received $10,110,950 in revenue for the year to date, up from $9,648,743 for the same period in 2016, according to the city. Sales tax collections are through September.

"Some of it is building, as building does generate sales tax," McCaslin said. "A lot of it is the hospitality industry, and retail is also strong."

Barry Moehring, county judge of Benton County, said a member of the Federal Reserve recently called Northwest Arkansas "the Gold Coast of the Midwest."

Moehring said, "Overall, the entire region is enjoying a nice level of prosperity."

Paul Becker, Fayetteville's chief financial officer, also credited the region's overall economy for his city's growing sales tax revenue. Year-to-date receipts of $17,802,213 are ahead of 2016 by $615,891 or 3.58 percent.

The city's receipts are about $1 million ahead of what was budgeted for the year to date, Becker said.

"It's a little less than we'd like, but it's still positive growth," Becker said.

Wyman Morgan, Springdale's director of administration and finance, said the city's sales tax collection is up nearly 5.5 percent so far this year compared to 2016.

The city has received $13,272,772 in 2017, according to figures from Springdale. For all of 2016, the figures show the city received $13,189,898.

Morgan said the Sam's Club opening in Springdale likely explains some of the increase.

Amazon started collecting taxes and remitting the money to the state March 1.

In Rogers, the city's sales tax revenue is also increasing, according to Casey Wilhelm, the city's finance director. Rogers has received $16,921,033 for the year to date, according to Wilhelm. For all of 2016, the city received $17,260,350.

"I'm estimating we'll be around $18.3 million at the end of the year," Wilhelm said. "Our budget was $16.5 million. We're very conservative on our budget here in the city. It will just make our reserves grow."

Brenda Guenther, comptroller for Benton County, said the county has received $8,120,839 for the year to date, which is about 7 percent more than the same period last year, according to Guenther. The county budgeted $8.1 million in sales revenue for 2017.

Washington County Treasurer Bobby Hill said the county has collected $6,719,796 for the year to date, up by 6.7 percent from 2016. That year, he said, the county received about $6.9 million.

"So we'll easily surpass our projections for 2017," he said.

Metro on 12/11/2017

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