Fort Smith sales tax collections exceed estimates

City of Fort Smith tax collections are up more than 6.5 percent over budget estimates, according to city figures.

The city collected $1.71 million in taxes on September transactions, up 11.43 percent over the budget estimate and up 11.42 percent over September 2007 tax collections.

Collections remain strong in the area despite national economic troubles.

“For the ten months ended October 31, 2008 of the year, the actual revenue in 2008 compared to actual for 2007 increased 9.69 percent and compared to the 2008 budget projections has increased 5.91 percent,” Kara Bushkuhl, director of finance for the city, noted in a memo.

The city collected $18.92 million from its 1 percent street tax program in 2007, and the same amount from a 1 percent tax to support the 2001/2006 bond series. The city also collected $15.15 million from its share of the Sebastian County 1 percent tax.

However, Bushkuhl has proposed a modest 3.9 percent increase for the 2009 city budget. That $264.9 million budget will be considered Tuesday night (Dec. 2) by the Fort Smith Board of Directors.