Bentonville sales tax revenue declines, other cities see gains

The four largest Northwest Arkansas cities had mixed sales tax revenue results in their May reports. Bentonville, Fayetteville, Rogers and Springdale cumulatively reported sales tax revenue of $47.662 million, down 12.28% from a year ago.

All of that decline occurred in Bentonville, with sales tax revenue totaling $632,455, indicating that large rebates offset the revenue. The city’s revenue fell 72.91% from a year ago. Through the first months of 2025, Bentonville’s sales tax revenue totaled $10.447 million, flat to a year ago, wiping away double-digit gains the city posted last month.

“This month’s sharp drop in sales tax revenue stems from a $4.5 million rebate processed at the state level,” the city noted in a statement. “In Arkansas, large purchasers can request refunds on previously paid sales tax, which the state deducts from future city distributions. While legal, these rebates are applied without advance notice to cities, making it harder to anticipate month-to-month revenues. Bentonville’s financial position remains stable, and we’re prepared to adjust when needed. But situations like this raise important questions about how the rebate process is administered and the impact it has on local communities.”

The other three cities in the report saw steady gains in their May reports.

Rogers, which had a sales tax decline of 1.72% for the first four months of the year, posted gains of 8.91% this month. Revenue totaled $2.689 million compared to $2.469 million a year ago. Through May, Rogers reported sales tax revenue of $12.722 million, up 0.315% from the prior year. The city’s revenue has been offset by rebates of $834,839 through the May report.

Fayetteville revenue totaled $2.905 million, up 8.25%. Through five reporting months of 2025, revenue totaled $13.773 million, up 4.09% from a year ago.

Springdale posted steady gains of 4.54% in the May report. The city has sales tax revenue totaling $2.2 million, adding more than $95,000 in additional funds to the city coffers this month. Springdale’s revenue year-to-date totals $10.72 million, rising 8.14% from the year-ago period.

SALES TAX REVENUE (January-May)
Bentonville
2025: $10.447 million
2024: $10.517 million
down 0.66%

Fayetteville
2025: $13.733 million
2024: $13.193 million
up 4.09%

Rogers
2025: $12.722 million
2024: $12.681 million
up 0.315%

Springdale
2025: $10.72 million
2024: $9.913 million
up 8.14%