Rogers’ year-over-year January sales tax revenue dips

Rogers showed a slight dip in sales tax revenue in January compared with the same month a year ago while other city and county governments in the Northwest region of the state received positive reports.

Casey Wilhelm, Rogers finance director, said limitation on dining, shopping and entertainment venues instituted in March 2020 because of the covid-19 pandemic has hit Rogers harder than some locations.

“We’re just going to have to hold our ground until this pandemic is over,” Wilhelm said. “I do think people are going to get back to what they were used to doing.”

She said Rogers will receive about $19.9 million from the 1% sales tax collected last year. The city has kept its 2021 budget flat, projecting the same amount for the coming year, she said.

“We’re going to be fine,” she said.

City and county governments received reports from the state Department of Finance and Administration in January showing sales tax collections from November. Each of the entities has a 1% sales tax.

Rogers received $1,756,420 compared to $1,782,025 in January 2020 for a decrease of about 1.5%.

Bentonville received $1,749,927 compared to $1,173,153 in January 2020, an increase of about 49.2%.

Springdale received $1,465,655 compared to $1,365,091 in January 2020 for an increase of about 7.4%.

Fayetteville received $2,060,954 c0mpared to $1,943,530 in January 2020 for an increase of about 6%.

Countywide sales tax revenue is shared among the county and the cities in the county on a per capita basis.

Benton County received $1,038,929 compared to $871,360 in January 2020 for an increase of about 19.2%.

Washington County received $740,391 compared to $685,952 in January 2020 for an increase of about 7.9%.

City officials said the state data indicates much of the increases were in basic goods and internet sales.

Scott Greenwood said the restrictions on public gatherings are still hampering business at the Oak Plaza Barber Shop in Fayetteville. Greenwood said his business has been cut in half and hasn’t recovered. He said most days the shop has two barbers working compared to five or six in the past.

“It’s by appointment only, and people have to wait outside and wear masks,” Greenwood said. “We always had a lot of walk-up customers. With the restrictions, a lot of people left and didn’t come back. The sales tax may be up, and internet sales may be up, but for barber shops and beauty salons, business is not all the way back.”

Jake Harper, Bentonville’s finance director, said the city should receive about $16.9 million in sales tax revenue for 2020. He said the city budgeted about $15.5 million for this year, basing that on the city’s 2019 revenue.

“We didn’t know, when we were doing the budget back in June and July, what the pandemic was going to hold for us.” he said. “We hope we continue to see some growth in that.”

Fayetteville budgeted about $29.3 million in sales tax revenue for 2020 and is set to end the year with over $30 million, according to Paul Becker, the city’s finance director. The city budgeted about $29.5 million in 2021.

Springdale budgeted about $16.5 million in sales tax revenue for 2020 and should receive around $18 million, according to Wyman Morgan, the city’s finance director.

“Right now, Springdale is in the best financial shape it’s been in in 20 years,” Morgan said.

Benton County lowered its sales tax forecast from $11.4 million to $10 million in June. Brenda Peacock, county comptroller, said the county will receive about $11.2 million for 2020. The county budgeted $10.5 million in sales tax revenue this year.

Washington County Treasurer Bobby Hill said the county exceeded its 2020 projection of $8.1 million in sales tax and will have about $8.6 million in revenue. Hill said this year’s projected revenue is about $7.4 million.