April douses Hot Springs with strong tax receipts

HOT SPRINGS — The spring rebound from a lethargic winter for collections of the 1 percent sales tax Hot Springs levies in support of its general fund continued in April, increasing 3.71 percent compared with the previous April and putting collections 2.88 percent ahead of last year’s pace.

April’s $1,057,765 was $37,862 more than the previous year, giving the city $4,340,952 through the first third of the year. The total exceeded the city’s monthly revenue forecast by $48,256, or 4.8 percent. Through four months, collections are $131,551, or 3.1 percent, ahead of revenue projections.

The tax raised $13,125,333 last year.

April’s showing built on March’s 6.96 percent increase. The city’s finance department said records dating back to 1995 indicated that it was the largest year-over-year March increase. March and April made up for a slow February that put the year-to-date total for the first two months 0.03 percent behind last year’s pace. February collections of $1,005,366 fell 3.19 percent short of last year’s mark, but January’s total ticked up 3.43 percent on the strength of $979,612 in collections.

April collections of the 3 percent sales tax the Hot Springs Advertising and Promotion Commission assesses on prepared food and lodging inside the corporate limits also followed up on a record-setting March. The $591,288 was 4.06 percent more than last year, putting the $2,181,883 collected through the first four months 2.2 percent ahead of last year’s mark.

The commission said March’s $673,912 total was the most of any month in the tax’s more than 50-year history. The commission’s taxing authority extends to about 300 restaurants, food trucks, concession stands, convenience and grocery stores and more than 70 hotels and RV parks.

Per city code, the tax is due on the 20th day of the month and can be used to promote the city, operate and maintain the Hot Springs Convention Center and public recreational facilities inside the city.

March and April collections of the 0.5 percent sales tax Garland County levies in support of its general and solid waste funds also showed signs of life after a dormant winter. The $873,698 realized in April beat last year’s mark by 18.4 percent, and the $873,696 for March was 7.62 percent more than last year.

The $3,087,953 collected through the first four months is 5 percent ahead of last year’s pace. The tax opened the year on a down note, with January and February missing last year’s marks by 3.16 percent and 4.10 percent, respectively.