Sales taxes rebound in August

Numbers released last week show expectations the city had for sales tax collections to rebound in August were justified, as monthly collections increased 2.60 percent compared to the previous August.

The $1,103,785 raised in August by the 1-percent sales tax Hot Springs levies in support of its general fund outperformed last year’s mark by $28,019, ending a summer slump that saw downturns of 0.32 and 3.13 percent in June and July.

The $8,901,083 collected through the first eight months is

1.98 percent ahead of last year’s pace largely on the strength of a March-April-May rally that beat the 2017 spring quarter by 5.57 percent. The tax is projected to raise

$13,384,683 in 2018 but is slightly behind the revenue forecast, trailing by $20,604.

A 2-percent increase from the $13,125,334 total in 2017 was projected this year. The finance department told the Hot Springs Board of Directors earlier this week that a 1.5-percent increase is expected in 2019.

The city based its expectations for a strong August on collections the Hot Springs Advertising and Promotion Commission reported for the month. The 3-percent sales

tax the ad commission levies on prepared food and lodging inside the city climbed 15.98 percent, taking in $539,566 from the roughly 300 restaurants, grocery stores and food trucks and the more than 70 hotels, RV parks and campgrounds within its taxing authority.

The $4,494,730 collected through the first eight months is 3.20 percent ahead of last year’s pace.

The 0.50-percent countywide sales tax Garland County levies in support of its general and solid waste funds are on a similar trajectory. The $6,162,965 collected through August is 3.30 percent in front of last year’s mark, outpacing it by $196,670.

The $776,836 collected in August was 7.27 percent more than last year, and the $812,719 collected in July was 8.56 percent more than last year.