November sales tax revenue falls, should rebound next month
Siloam Springs city sales tax receipts for last month showed a decrease of $137,647.61 when compared to the same month last year.
City sales tax revenue for November 2018 totaled $497,884.73, while in November 2017 this number was $635,532.34, reflecting a 21.7 percent decrease, according to the December issue of City and Town magazine. The sales tax rate in Siloam Springs is 9.5 percent, and the revenue it receives directly typically comes from two percent of this.
The reason for the decrease is due to the discontinuation of the 5/8th cent sales tax in July. Monthly revenues since the tax was discontinued have shown similar decreases when looking at year-by-year comparisons, as only collected 1 3/8 percent was being collected. For example, there was a 23 percent decrease in September and a 32 percent decrease in October.
Voters decided to extend the tax in May and it will be reinstated this month, at which point tax revenues should return to normal levels, said City Finance Director Christina Petriches, according to an Oct. 21 report from the Herald-Leader. As for county sales tax revenue, Siloam Springs saw an increase of $15,108.60, or 5.8 percent, from $260,192.44 in November 2017 to $275,301.04 in November 2018.
For comparison, the sales tax revenues of some other cities in the Northwest Arkansas region are listed below.
• Bentonville — Down $180,143.20, from $1,815,361.45 in November 2017 to $1,635,218.25 in November 2018.
• Eureka Springs — Up $8,194.48, from $252,823.08 in November 2017 to $261,017.56 in November 2018.
• Fayetteville — Up $195,977.61, from $3,593,131.36 in November 2017 to $3,789,108.97 in November 2018.
• Gentry — Up $16,018.84, from $50,784.51 in November 2017 to $66,803.35 in November 2018.
• Lincoln — Up $5,745.74, from $44,272.22 in November 2017 to $50,017.96 in November 2018.
• Rogers — Up $16,135.03, from $3,270,601.31 in November 2017 to $3,286,736.34 in November 2018.
• Springdale — Up $75,902.33, from $2,462,441.66 in November 2017 to $2,538,343.99 in November 2018.