County Receives Slow Sales Tax Report | New

JONESBORO — Collections of Craighead County’s 1% sales tax rose just 0.9% this month, even as the national consumer goods inflation rate hits an all-time high for 40 years.

According to reports provided by County Treasurer Terry McNatt, the tax raised $2,277,954 for the county government and 10 municipalities. June revenue generally mirrors retail sales in stores in April.

While countywide tax revenue has been sluggish, Jonesboro’s 1% separate municipal sales tax revenue rose 7.6% this month to $2,131,956, according to the city ​​finance department. However, municipal sales tax collection rates lagged countywide tax collections in previous months. For the first six months of 2022, the collections of the two taxes are more than 12% higher than the collections of 2021.

Economists blame a confluence of factors for the inflationary push, reports the Associated Press. Fueled by rock-bottom interest rates and sweeping government assistance programs, the economy rebounded with surprising speed from the pandemic recession of spring 2020. Companies rushed to recall laid-off workers and buy enough supplies to meet growing customer demand. This resulted in labor and material shortages, delays and higher prices. Russia’s invasion of Ukraine has driven up energy and food prices even further.

After being slow to recognize the inflationary threat, the Federal Reserve took aggressive action. Last week it raised its benchmark short-term interest rate by three-quarters of a percentage point – its biggest rise since 1994 – and signaled that bigger rate hikes are ahead. It also raised rates in March and May.

During a congressional hearing on Thursday, Fed Chairman Jerome Powell said the goal was to cut inflation from 8.6% to 2% by the end of the year.

June breakdown of Craighead County sales tax, with each entity’s percentage share of the money in parentheses and the totals for the year:

Jonesboro – (70.6), $1,609,196; $9,815,968.

Craighead County – (16.8), $383,274; $2,337,938.

Berry – (1.69), $38,420; $234,456.

Black Oak – (0.21), $4,772; $24,335.

Bono- (2.17), $49,335; $300,940.

Brookland – (3.65), $83,229; $507,688.

Caraway – (1.02), $23,293; $141,538.

Cash – (0.25), $5,734; $34,979.

Egypt – (0.1), $2,314; $14,116.

Lake City – (2.09), $47,835; $290,571.

Monette – (1.35), $30,842; $188,134.

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