Northwest Arkansas sales tax revenue pullback continues through July report

Northwest Arkansas Sales Tax Revenue Sees Continued Decline

Sales tax revenue in Northwest Arkansas, which comprises the cities of Fayetteville, Springdale, Rogers, and Bentonville, has continued to experience a decline. The cumulative sales tax revenue reported by these cities in July totaled .533 million, marking a significant drop of 9.28% from the same period last year.

This decline is part of a larger trend in the region, with the May report showing a combined revenue of .614 million, a decrease of 0.51% compared to last year. The June report also saw a notable drop, with revenue dipping 5.31% from the previous year.

The downturn in sales tax revenue can be attributed to a combination of factors. In Bentonville, year-over-year revenue fell 28.31% in the June report, largely due to rebates paid to incentivized businesses. This has led to a 10.4% decline in Bentonville’s sales tax revenue so far in 2024 compared to the same period in 2023.

Other cities in the region, such as Rogers and Springdale, have seen mixed results. Rogers reported a 4.19% increase in sales tax revenue for June, while Springdale saw a 2.24% gain for the same period. Fayetteville, the largest populated city in the region, reported a modest 1.54% increase in sales tax revenue for June.

The decline in sales tax revenue has significant implications for these cities. As sales tax revenue is a key indicator of consumer spending, these drops suggest that citizens are spending less on goods and services. This could be a sign of a slowing economy and may influence how city leaders budget and allocate resources.

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