April tax collections show mixed results

April collections of the 1-cent sales tax Hot Springs levies in support of its General Fund were 5.32 percent lower than the April 2016 total, but the city’s finance department said the downturn shouldn’t raise alarm.

The $1,019,903 collected in April was $57,297 less than what was realized during the previous April. Year-overyear collections for February were off the 2016 pace by

8.56 percent, with March’s total up 6.62 percent. The

$4,219,297 businesses collected during the first four months of 2017 is 1.07 percent, or $45,476, less than what was collected over that time last year.

The tax raised $12,581,886 in 2015 and $13,122,238 last year. It was projected to net $13,541,026 this year but is 3.5 percent, or $153,270, behind the budget forecast. Collections have failed to meet projections during each of the first four months of 2017.

Finance Director and Treasurer Dorethea Yates said the numbers may not be a true reflection of economic activity. The last time collections failed to exceed the previous year’s total was 2009, she said.

“Though our numbers are showing a reduction so far

this year, I think it’s too early to be concerned about this,” she said. “The monthly results can be significantly impacted by rebates or by a large taxpayer failing to file a timely return.

“Indications from the (Hot Springs Advertising and Promotion Commission) and (Oaklawn Racing & Gaming) are that May was a very strong month. I’m expecting some good numbers for the city as well for May.”

April collections of the

3-cent sales tax the ad commission assesses on prepared foods and lodging were up 9.24 percent compared to April 2016, with the $568,191 total besting last year’s mark by $48,059. The

$2,133,773 collected through April outpaced the first four months of 2016 by 6 percent, or

$122,679.

The city also levies a halfcent sales tax for its police and fire funds, with the police department receiving 60 percent of the proceeds and the fire department 40 percent. The

2017 budget forecast projects the tax will collect $6,770,513 this year.

March collections of the half-cent sales tax Garland County levies for its solid waste and general funds were up 7.66 percent, or $62,199. The

$2,203,070 collected during the first quarter of the year exceeds last year’s pace by 4.8 percent, or $101,454. Eighty percent of the proceeds support the General Fund and 20 percent goes to the solid-waste account.

Businesses will begin collecting a five-eighths-cent sales tax starting July 1 to secure the $54.6 million bond issue voters approved last June for road improvements. The tax is expected to pay off the debt by 2023.