Mountain Home's sales tax collections increased by 0.64% in August, reflecting $640,305.37 in revenue compared to $636,237.98 during the same month last year. This marks the third consecutive month of slowed growth, according to figures released by Alma L. Clark, Director of Finance and Treasury. The latest report indicates a significant tempering from the stronger growth rates seen earlier this year.
The August collections reflect retail activity from June, and though growth has tapered, this month's revenue stands as the highest August total in city records dating back to 1992. Between January and April, Mountain Home's monthly collections rose by 3.2% to 5.1% compared to 2025 levels. However, that growth began to decline in the spring, slipping to 2.5% in May and 0.6% in June. In July, collections fell 0.4% year over year, marking the first monthly decline in 2026.
Despite the trend, year-to-date collections remain strong. The city has received $4,831,222.11 through the first eight payments of the year, a record amount that is $113,562.47 higher than the same period in 2025. This represents a 2.41% increase year to date.
Meanwhile, Mountain Home’s share of the Baxter County sales tax jumped 5.45% in August after a near-flat July. The city collected $316,406.93 compared to $300,059.77 last year. Year-to-date collections for the county tax, which is distributed among Baxter County and its cities, show a 4.99% rise totaling $110,159.93 in additional revenue.
Public safety sales tax collections mirrored the general city sales tax, increasing 0.64% for the month to $240,114.52. Year-to-date, public safety taxes rose 2.41% to $42,585.93 higher than 2025.
The park improvement sales tax generated $320,152.69 in August, exceeding the city’s 2026 monthly bond payment obligation of $214,624.95 by $105,527.74. Through August, that tax has raised approximately $698,600 more than needed for bond payments. Additionally, the parks operations tax brought in $160,076.34 for the month.
Mountain Home budgeted $7 million in sales tax collections for 2026, less than the $7,156,882.24 actually collected in 2025. If the current pace holds through December, the city is projected to end the year near $7.3 million.