PRAIRIE GROVE -- Though no one is jumping for joy yet, Prairie Grove city officials are upbeat about sales tax revenues generated since the new bypass opened in September.
Sales tax revenues are up by 4 percent for the first three months in 2015, compared to the first three months in 2014," according to Larry Oelrich, director of administrative services and public works.
Since the bypass opened, sales tax revenues are up for the five-month period, November 2014 through March 2015, compared to the same period one year ago. Sales tax revenue numbers reflect sales collected two months earlier. For example, sales tax numbers reported in November 2014, reflect sales taxes collected in September.
"Five months is still too early to be jumping up and down, but it is good news nonetheless," Oelrich said by email.
Many residents and city officials have worried the bypass would hurt businesses in town, along with wondering how other factors would affect sales tax proceeds. Country Lane Liquor and the Pit Stop gas station closed in Prairie Grove and a new Walmart Neighborhood Market opened in Farmington on U.S. 62.
From looking at sales tax receipts, it appears that these factors have not impacted sales much, Oelrich said.
Prairie Grove collects 2.25 percent in local taxes. Of this total, 1 percent is paying off debt for the sewer plant, 0.75 percent is dedicated to the 2013 bond issue, 0.25 percent is dedicated to a parks and library, and 0.25 percent is for capital improvements.
Receipts show that collections for a 1 percent sales tax brought in $34,934 in January, compared to $36,700 in January 2014. For February, Prairie Grove received $38,881 for its 1-cent sales tax, compared to $35,096 in February 2014. For March, Prairie Grove reported $35,613 in sales tax proceeds, compared to $33,247 a year ago.
The total for the three months is $109,428 in sales tax receipts for a 1 percent tax, compared to $105,043 a year ago.
"It's getting to the point where we can kinda look at trends," Oelrich said. "January through March is a pretty good increase. We're not seeing a negative impact like people were saying would happen. Based on sales taxes, we're not being hurt (by the bypass)."
Oelrich said he expected the new Neighborhood Market in Farmington
General News on 04/01/2015