FARMINGTON -- Sales tax revenues are up in Farmington, Prairie Grove and Lincoln and city officials are happy about the news.
Comparing the first six months of 2015 to the same period in 2014, all three cities are seeing an increase in their local tax monies.
For January-June, Farmington received $321,250 from its 1-cent sales tax, compared to $257,444 for January-June 2014, a 24 percent increase in receipts.
Mayor Ernie Penn said it will be interesting to see if the city continues to see that type growth through the rest of the year.
"If it does, that's huge," Penn said.
He said he believes sales tax revenues are up because of new businesses in town and also because existing businesses are seeing increased sales.
"There's no guarantee it will keep going this way but I think we're reaping the benefits of some of the new businesses in our city."
New businesses in the past year include Walmart Neighborhood Market, Kum & Go and Casey's General Store. Other new businesses are Domino's Pizza, Onion Creek House of Gifts, Oops and Shorty's Deli & Meat Market.
"I think some of our smaller shops are holding their own and bringing people to town. That's good," Penn said.
For Farmington, collections are higher for every month in 2015, compared to the same month in 2014. The highest jump occurred in January. Farmington received $39,530 in January 2014 from its 1-cent sales tax and this jumped to $56,766 in January 2015, an almost 44 percent increase. Sales tax receipts run two months behind so the payment received in January represents sales made in November.
Farmington collects a 1 cent sales tax for its general fund and street fund and another 1 cent sales tax for sewer debt service.
In Prairie Grove, sales tax receipts increased from $201,760 in the first six months of 2014 to $223,214 during the same period in 2015.
Larry Oelrich, director of administrative services and public works, said he believes revenues are up because of a strong economy.
"Lots of people are moving in," Oelrich said. "We're on pace to have another 85 new housing starts in Prairie Grove and the downtown shops and antique stores are building up a bigger clientele every year."
While cities are not allowed to see how much a specific business collects in sales tax revenues, they do receive reports on categories, such as sales tax collections from retail stores and restaurants. When looking at catgories, Oelrich said he is not seeing a drop in any area.
"We're up about 10 percent across the board," Oelrich said.
He expected to see sales tax revenues drop for June as a result of Dollar General closing in April but didn't. In June 2014, Prairie Grove received $36,059 from its 1-cent sales tax. For June 2015, the city received $36,002, a difference of only $57.
The bottom line is that everybody is "real happy" with the revenues, Oelrich said.
Prairie Grove collects 2.25 percent in local taxes. Of this, 1 percent is collected to pay back bonds for the sewer plant, .25 percent is designated for parks and libraries, another .25 percent goes into a fund that can be used for any municipal purposes and .75 percent is being collected to pay off the bonds for infrastructure improvements.
Lincoln also has seen an uptick in sales tax revenues for the year.
"We've seen a boost, a little increase," said Rob Hulse, Lincoln mayor. "We've been averaging $16-17,000 (per month) and we're seeing it get up to $21,000 right now. We're setting a pattern we're very excited about and we hope it holds."
Lincoln's sales tax receipts for January-June show the city received $112,271 from its 1-cent sales tax, compared to $105,965 for the same period in 2014, an increase of about $6,300, according to figures from City Hall. For the past four months, March-June, Lincoln has received more per month, compared to the same month last year.
Hulse attributes the increases to a combination of factors. For one, he said he thinks more people are shopping at home. Also, several businesses have expanded or reopened in town. Simple Simon's Pizza closed but is now re-opened. Farmers Co-op True Value has moved to a larger facility and Lincoln has a new antique store called Pappa Bear's Antiques & Stuff.
Lincoln collects a local 1-cent sales tax for capital improvements and a second 1-cent sales tax for the library and parks and recreation.
General News on 07/22/2015