Collections of the city's 1% general fund sales tax posted another strong month in April, beating the previous April by 35.55%, or $388,755, according to the report the city released last week.
The $1,482,261 collected in April put the first four months of collections 18.16%, or $817,712, ahead of last year's pace, and 12.22%, or $579,448, ahead of the 2021 general fund budget's revenue forecast. March and April collections were up 33.73%, or $772,383, compared to 2020.
The large year-over-year gain is a function of the economic fallout from the pandemic, which weighed heavily on consumer spending in March and April of last year. But this March and April's collections also surpassed 2019 and 2018. March 2021 collections eclipsed 2019 and 2018 by 30.62%, or $370,466, and 21.66%, or $281,803. April 2021 collections beat 2019 and 2018 by 13.99%, or $188,909, and 40.13%, or $424,496.
The city's taxing authority wasn't as broad in the spring of 2019 and 2018, as the law requiring online retailers and marketplaces to collect and remit sales taxes didn't take effect in Arkansas until July 2019.
April collections of the 3% sales tax the Hot Springs Advertising and Promotion Commission levies on prepared food and lodging in the city were up 138.99%, or $417,005, compared to 2020, marking the second-straight month collections more than doubled the previous year's output. The $2,383,768 collected during the first four months is 43.50%, or $722,558, ahead of last year's pace.
The $755,187 and $717,019 the hospitality tax collected in March and April surpassed all months dating back to 2012, according to a report the ad commission provided.
The U.S. Bureau of Labor Statistics' preliminary jobs report for May showed the Hot Springs Metropolitan Statistical Area posted its second-straight month of job gains, snapping 12-consecutive months of job losses. The area economy added 3,300 jobs compared to May 2020. In April, it added 5,100 jobs compared to the previous April.
The area economy's job market shrunk by 2,158 jobs on average from April 2020 to February. The 38,800 nonfarm jobs reported in May were the most since the 39,900 in March 2020.