City sees 37 percent boost in tax revenue
Posted on Wednesday, December 3, 2008
BENTONVILLE — September brought some promise to Bentonville’s sales-tax figures.
For September tax revenue and paid to the city in November, the city brought in $ 789, 844 — a 37. 6 percent increase over September 2007 ’s collections of $ 573, 859.
City Finance Director Denise Land noted that revenues have fluctuated throughout the year. “ It’s just been up and down. The month before (August ), we were down almost 20 percent, ” she said.
Land said the increase may be attributed to the Streamlined Sales Tax Project, a federal program intended to eventually collect sales taxes on all Internet purchases. Arkansas is one of 19 states that participates in the project.
The project requires payment of taxes for items at the point of delivery rather than the point of sale. Businesses may file for a rebate on city and county taxes up to $ 2, 500. That can result in periods of high revenues, followed by low revenues, depending on when the rebates are distributed.
The city has collected approximately $ 7. 1 million of its budgeted $ 7. 6 million in revenue for 2008, with the months of October, November and December yet to be collected.
“ I feel confident that we’re going to make budget, and hopefully more than make it, ” Land said.
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