Fort Smith sales tax revenue posts impressive gain

Sales tax collections on October transactions in Fort Smith were $1.68 million, up an impressive 11.18% over the same period in 2007.

(Sales taxes are remitted by the state on a two-month cycle. For example, sales taxes paid in October are collected by the state in November and returned to counties and municipalities in December.)

Year-to-date, the city of Fort Smith has collected $18.96 million on its 1-cent street tax program and the same amount for the 1-cent tax to pay the 2001/2006 series bonds.

Fort Smith’s portion of the sales tax collections on October transactions in Sebastian County totaled $1.35 million, up 11.33% from the same period in 2007.

“For the eleven months ended November 30, 2008, the actual revenue in 2008 compared to actual for 2007 increased 9.19% and compared to the 2008 budget projections has increased 6.44%,” noted a memo from Kara Bushkuhl, Fort Smith’s director of finance.

The city’s portion of the countywide sales tax for the year is up 9.83% over the same period in 2007 and up 6.04% over 2008 budget projections.

Also, Bushkuhl noted in her report that franchise fee collections for the year are $5.68 million, with the largest portion of $2.86 million from OG&E. Bushkuhl estimates 2008 total franchise fees paid to the city will total $7.34 million and estimates the 2009 total to reach $7.56 million.