City, SFC sales tax collections increase in May

State agencies report FCity revenue up over $175,000 during past month

Forrest City will receive about $175,000 more in sales tax money from May sales than the previous year.

In Forrest City, during May, revenue from city sales taxes increased nearly $100,000 when compared to the previous year. Combined with the amount of tax revenue Forrest City receives through the county sales tax, city tax revenue in May is up about $175,000 total.

The Arkansas Department of Finance and Revenue, along with the Arkansas Municipal League, report that during May, sales in Forrest City generated tax revenue of $429,574.73.

A portion of the city’s sales taxes is used to retire bonds issued in 2013, which will be retired prior to July 1. At that time, the city will no longer collect the tax, .625%, for the 2013 projects.

The tax, however, will be collected again beginning Oct. 1, when the city begins collecting money to repay bonds on about $17.5 million in improvement projects that city voters approved in an April special election.

Last May, the city’s sales tax revenue was reported at $330,897.74, according to City and Town magazine, which is published by the Arkansas Municipal League.

In addition to Forrest City, five other cities across St. Francis County collect a citywide sales tax, and revenue in each of those cities also increased compared to the same period last year.

The May 2021 figures are listed with the 2020 figures in parenthesis: Hughes, $7,894.87 ($6,658.75); Madison, $2,244.47 ($1,518.68); Palestine, $31,598.29 ($26,237.46); Wheatley, $4,327.62 ($4,137.78) and Widener, $3,863.95 ($2,265.17).

Municipalities in the county also receive a portion of the county sales tax revenue of $496,179.92, which is also more than the tax revenue collected in May 2020. Last year’s amount was $338,804.29, according to the report in City and Town magazine.

Each city within the county receives a portion of the county’s taxes, with the exception of the one-cent jail tax dedicated to the construction of the new jail, facility maintenance and juvenile services.

From the county tax, Forrest City received $338,006.62 in May, which is more than the amount collected the previous year, which was $262,713.05, a difference of just over $75,000.

Other cities that collect revenue from the county tax are listed with the May 2020 figures in parenthesis: Caldwell, $12,204.38 ($9,485.76); Colt, $8,312.18 ($6,460.58); Hughes, $31,687.44 ($24,628.82); Madison, $16,910.22 ($13,143.34); Palestine, $14,975.12 ($11,639.30); Wheatley, $7,806.42 ($6,067.48) and Widener $6,003.24 ($4,665.96).