story by Kim Souza
ksouza@thecitywire.com
Consumer spending in May helped boost sales tax revenue 5.86% higher across Northwest Arkansas' four largest cities, according to the July reports from Fayetteville, Springdale, Rogers and Bentonville.
Cumulative collections in these anchor cities totaled $4.407 million in July, a gain of more than $244,000 from the year-ago period.
July revenue represents taxes on goods sold and services rendered in May. The cities collect a local 2% tax which is split evenly between their budgets and their parks. This report reflects the 1% going toward the cities’ general operating funds.
July Sales Tax Revenue
Bentonville: $816,897, up 8.65%
Rogers: $1.177 million, up 7.16%
Springdale: $907,096, up 4.64%
Fayetteville: $1.505 million, up 4.16%
Bentonville Finance Director Denise Land noted in an email that the city is tracking better than budget and slightly ahead of last year. The city budgeted revenue of $720,000 per month and has collected roughly $800,000 on average, according to city records.
Land recently attributed the stronger collections this year to additional traffic related to Crystal Bridges Museum of American Art, but added that the business economy is also better with more travelers coming in and out of the region.
Through the first half of 2013 passenger enplanements at Northwest Arkansas Regional Airport were up 3.18% from a year ago. More than 80% of that traffic is business-related travel.
Rogers, a major retail hub in Northwest Arkansas, continues to attract new businesses that keep fueling the tax collections higher. Monthly collections have topped $1 million for 15 consecutive months. City officials credit a steady stream of new eateries and retail that have come online this year.
Damgoode Pies recently opened a large restaurant at 3604 W. Walnut in Rogers, The pizza restaurant moved into a venue vacated by The Rib Crib more than four years ago. Dickey’s Barbecue and Slim’s Chicken’s are the latest eateries to call the bustling Pinnacle area home.
Slim’s recently relocated to Pinnacle Hills Parkway from its former site at 3600 W. Walnut.
The growth in Washington County is a little slower but Springdale and Fayetteville continue to stay ahead of budget with their collections this year.
Springdale city officials say they are pleased with the steady collections as they continue to invest in infrastructure projects that they hope will spur future development near Arvest Ballpark once the Don Tyson interchange off of I-540 is completed.
In Fayetteville, city officials need to see a 2% gain in collections to stay ahead of budget and so far this year, but revenue is trending up an average of 4%.
Sales tax collections are a lagging indicator so it’s important to put the numbers in context with their time sequence of events such as consumer spending reports from the same month.
Deloitte senior economist Daniel Bachman said in May: “The labor market has stabilized, and initial unemployment claims fell nearly 6% since this time last year, while real home prices continued to climb and real wages crept up.”
Despite snow falling in Northwest Arkansas on May 1, consumer spending managed to rebound throughout the country based on an uptick of 0.6% in May’s retail sales. Americans spent more on cars, home improvements and sporting goods, according to the National Retail Federation. Since May, consumer sentiment has continued to rise and retail sales have held their own with the exception of softness in the fast-food restaurant business.
Sale Tax Collections(June report; year over year)
Rogers
2013: $8.564 million
2012: $7.531 million
13.71%
Bentonville
2013: $5.418 million
2012: $4.829 million
12.19%
Fayetteville
2013: $10.432 million
2012: $10.022 million
4.09%
Springdale
2013: $6.034 million
2012: $5.891 million
2.42%