Sales tax collections exceed pre-pandemic levels
According to the report released by the city last week, the city’s 1% general fund sales tax collections posted another strong month in April, beating the previous April by 35.55%, or $ 388,755.
The $ 1,482,261 raised in April puts the first four months of fundraising 18.16%, or $ 817,712, ahead of last year’s pace, and 12.22%, or $ 579,448, in ahead of the 2021 general fund budget revenue forecast. March and April collections increased 33.73%, or $ 772,383, from 2020.
A graph showing the April 2021 sales tax report for the city of Hot Springs. – Photo submitted
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 the March and April collections also passed 2019 and 2018. The March 2021 collections eclipsed 2019 and 2018 by 30.62%, or $ 370,466, and 21.66%, or $ 281,803. The April 2021 collections beat 2019 and 2018 by 13.99%, or $ 188,909, and 40.13%, or $ 424,496.
The city’s tax authority was not as broad in the spring of 2019 and 2018, as law requiring retailers and online marketplaces to collect and remit sales taxes only came into effect in Arkansas. ‘in July 2019.
April’s collections of the 3% sales tax that the Hot Springs Advertising and Promotion Commission levies on prepared foods and accommodations in the city rose 138.99%, or $ 417,005, per compared to 2020, marking the second consecutive month of collections which more than doubled the production of the previous year. . The $ 2,383,768 collected in the first four months is 43.50%, or $ 722,558, ahead of last year’s pace.
The $ 755,187 and $ 717,019 hospitality tax collected in March and April has exceeded every month dating back to 2012, according to a report provided by the advertising commission.
The US Bureau of Labor Statistics preliminary employment report for May showed that the Hot Springs metropolitan statistical area recorded its second straight month of job gains, breaking 12 straight months of job losses. The region’s economy created 3,300 jobs compared to May 2020. In April, it added 5,100 jobs compared to the previous April.
The labor market of the region’s economy declined by 2,158 jobs on average from April 2020 to February. The 38,800 non-farm jobs reported in May were the largest since the 39,900 in March 2020.