City sees record sales tax collection
JONESBORO, Ark. (KAIT) - Jonesboro collected over $2.1 million in city sales and use tax, a 33.5 percent increase compared to May 2020. The percentage increase is the largest in a single month.
City leaders explained the increase is because at the beginning of the pandemic, many schools and public offices shut down, and people were losing jobs. Now more businesses are fully open, more people are out and about spending, and many folks have used their stimulus payments.
“We don’t know what it means right now. It’s kind of a wait-and-see thing,” said Bill Campbell, director of communications. “We’re grateful for it, but it doesn’t give us money to run out and spend things.”
Campbell says the city was not expecting the increase. They made a conservative budget and are bringing in more money than expected.
The money will go into the general fund.
In 2021, the city has collected $9.06 million in sales and use taxes. That’s a 9.6% ($792,511) increase from 2020. The city is 8.9% ($740,357) ahead of the budget through the month of May.
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