Sales tax receipts up 20 percent

Despite the pandemic, Siloam Springs sales tax receipts for July were up 20.56 percent — or $135,571 — compared to the same month last year.

The tax receipts represent sales made in May and distributed in July. Sales tax receipts were $795,020 in July 2020 compared to $659,449 in July 2019, according to the August issue of “City & Town” magazine.

Siloam Springs county sales tax receipts were down 0.12 percent or $4,032 to $319,745. Yearto-date totals show Siloam Springs sales tax collections are up 11.9 percent compared to the same time in 2019, according to City Administrator Phillip Patterson. The numbers represent an improvement over last year, when July year-todate totals were down 1.1 percent compared to 2018.

Sales tax receipts are one of the factors city officials watch to gauge the health of the local economy along with other factors such as construction permits and new jobs, Patterson said.

While the city doesn’t receive data on individual businesses, it does receive information on how much sales taxes are collected from types of businesses, categorized by North American Industry Classification (NAICS) codes.

Using the codes to compare year-to-date numbers, the city is up significantly in sales tax collected from restaurants, groceries, online shopping, building materials and general merchandise, Patterson said.

Arthur Hulbert, president and CEO of the Chamber of Commerce, said sales tax receipts show the flow of money and the freedom with which people are willing to spend it. While most people are surprised to see Siloam Springs’ sales tax receipts up during the pandemic, it is good news for the local government and the community, he said.

Hulbert noted that larger box stores, such as Walmart and Lowes, are having record sales, which could be driving sales tax receipt increases. Some industries, such as health care, are struggling, while others, such as housing and construction, seem to be skyrocketing, he said. People have also been very supportive of their community, he said.

“People in Siloam Springs care about the local community and have made purposeful choices to keep money in their community and shop local,” he said.

Several other smaller cities in Northwest Arkansas saw major increases in July sales tax receipts, such as Lincoln, up 39.27 percent; Gentry, up 12.63 percent; Gravette up 35.23 percent; and Bella Vista, up 32.51 percent. Eureka Springs was an exception, down 29.94 percent.

Meanwhile, some of the larger cities saw decreases in July, such as Bentonville, down 22.88 percent; Fayetteville, down 0.78 percent; Rogers, down 1.85 percent; and Springdale, down 0.49 percent.

Siloam Springs sales tax receipts come from its 2 percent sales tax. The total sales tax rate in Siloam Springs is 9.5 percent.

City sales tax receipts are used for utility infrastructure, repayment of wastewater treatment plant bonds, the city’s general fund, public safety and the street department.

A share of county sales tax receipts pays on two water utility infrastructure bonds.