City, county sales tax rally extends through third quarter

Downtown visitors walk in the 400 block of Central Avenue on Tuesday, Sept. 8, 2020. - Photo by Richard Rasmussen of The Sentinel-Record
Downtown visitors walk in the 400 block of Central Avenue on Tuesday, Sept. 8, 2020. - Photo by Richard Rasmussen of The Sentinel-Record

City and county sales tax collections rose on a year-over-year basis for the fifth-straight month in September, according to reports the city of Hot Springs and Garland County released last week.

Collections of the city's 1% general fund sales tax rose 7.7%, $465,119, in the five months that followed April's 15.91% drop. The second and third quarter rally included September's 12.7%, or $147,630, increase compared to the previous September. The $10,984,288 collected through the first three quarters was 4.9%, or $522,026, ahead of last year's pace.

Collections are 4.9%, or $516,071, ahead of the 2020 budget's $14.07 million revenue forecast. The tax collected $14.26 million last year.

"Our sales tax continues to be strong," Finance Director/Treasurer Dorethea Yates said in an email to the Hot Springs Board of Directors and local business leaders. "These numbers, during the pandemic, give us a lot for which to be thankful for."

Collections of the county's 0.50% countywide sales tax supporting its general and solid waste funds rose 11.7%, or $495,968, in the five months that followed April's 9.35% drop. The increase included September's 15.9%, or $131,262, gain relative to the previous September. The $7,915,423 collected through the first three quarters was 7.8%, or $574,565, ahead of last year's pace.

Collections have exceeded the county's 2020 budget revenue forecast by 25.1%, or $1,588,527. The county's revenue projection is about 85% of the roughly $10 million the tax collected in 2019.

September was the strongest month since February for the 3% sales tax the Hot Springs Advertising and Promotion Commission levies on prepared food and lodging inside the city, posting an 8.69%, or $46,530, gain relative to the previous September. The $4,623,998 collected through the first three quarters was down 15%, or more than $800,000, compared to last year.

Collections from the roughly 300 prepared food establishments and 70 lodging facilities within the commission's taxing authority were both up more than 8% in September. In addition to supporting the Hot Springs Convention Center and promoting the city's tourism industry, proceeds from the tax service about $9 million in debt the city issued on the commission's behalf for construction of the Majestic Park baseball complex and the expansion of the Mid-America Science Museum.

The city's financial adviser has said it costs about $600,000 a year to service both debt issues.

The local economy lost 1,100 jobs compared to the previous September, according to the U.S. Bureau of Labor Statistics revised September jobs report for the Hot Springs Metropolitan Statistical Area. There were 38,200 jobs in September compared to 39,300 the previous September.

The preliminary October jobs report showed the MSA, which includes all of Garland County, lost 700 jobs relative to the previous October. More than 15,000 jobs were lost from April to October, including almost 6,000 in April. September's preliminary 9.6% unemployment rate was lower than August's revised 10.1% rate. The previous September's jobless rate was 3.5%.

The personal finance website WalletHub reported Arkansas has had the 10th-fastest recovery in unemployment claims. The change in claims for the week of Nov. 16 was 113.2% higher than the week of Nov. 18, 2019, ranking Arkansas' jobs recovery the 10th-fastest among the 50 states and District of Columbia.

Arkansas ranked behind New Jersey, South Carolina, West Virginia, Pennsylvania, Wyoming, Oregon, Connecticut, District of Columbia and South Dakota. New Mexico, Kansas and Colorado have had the slowest recoveries.

Upcoming Events