Sales tax collections up in the region

Sales tax collections in the Fort Smith region (Crawford, Franklin, Logan and Sebastian counties) indicate that consumer spending remained strong in the January-September 2008 period.

The only decline in the top 10 largest cities (ranked by sales tax collections) and the four counties came from Van Buren, and that was because the city’s sales tax rate dropped by 1 percent in April 2008.

Logan County posted the biggest gain (40 percent) in sales tax collections between January and September. Alma and Barling posted the biggest year-to-date sales tax collections with 20 percent and 27.2 percent respectively.

Franklin County and Ozark also posted strong sales tax collections for the year. Susan McIlroy-Stokes, director of the Ozark Area Chamber of Commerce, said some of the boost could be from an increase in traffic from antique shoppers. Area antique stores earlier this year pooled their money and purchased billboard advertising on Interstate 40. The advertising worked.

“I wouldn’t be surprised if some of that (increased collection) is from that traffic. It’s been a big deal,” Stokes said.

She said the antique shoppers also buy gas and eat at area restaurants. “We get, I would say, a lot of residual business from that (antique) shopping,” she explained.

Rusty Myers, director of economic development with the Western Arkansas Planning and Development District, said repair of storm damage in the area is one reason behind higher collections. He also agreed that food and other commodity inflation could result in higher tax collections.

Kara Bushkuhl, finance director for the city of Fort Smith, said it is hard to ascertain the reason for sale tax collections ups and downs because Arkansas finance officials refuse to disclose sales tax data for different categories of goods and services.

Top 10 cities – sales tax collections in the Fort Smith region

Fort Smith
September 2008: $3,593,906
September 2007: $3,177,397
up 13.1 percent
collected $31.96 million Jan.-Sept., up 11.1 percent over the same period in 2007.

Van Buren (Van Buren’s sales tax rate dropped 1 percent in April 2008)
September 2008: $345,588
September 2007: $456,142
down 24.2 percent
collected $3.71 million Jan.-Sept., down 11.1 percent over the same period in 2007.

Alma
September 2008: $197,221
September 2007: $168,500
up 17 percent
collected $1.81 million Jan.-Sept., up 20 percent over the same period in 2007.

Greenwood
September 2008: $161,537
September 2007: $142,767
up 13.1 percent
collected $1.46 million Jan.-Sept., up 15.6 percent over the same period in 2007.

Ozark
September 2008: $80,781
September 2007: $66,377
up 21.7 percent
collected $673,770 Jan.-Sept., up 17 percent over the same period in 2007.

Mansfield
September 2008: $29,909
September 2007: $26,967
up 10.9 percent
collected $275,192 Jan.-Sept., up 12.3 percent over the same period in 2007.

Mulberry
September 2008: $28,495
September 2007: $28,478
collected $254,182 Jan.-Sept., up 15.6 percent over the same period in 2007.

Paris
September 2008: $26,464
September 2007: $16,704
up 58.4 percent
collected $229,306 Jan.-Sept., up 13.6 percent over the same period in 2007.

Charleston
September 2008: $23,741
September 2007: $22,966
up 3.3 percent
collected $226,926 Jan.-Sept., up 12.2 percent over the same period in 2007.

Barling
September 2008: $23,796
September 2007: $20,988
up 13.3 percent
collected $213,398 Jan.-Sept., up 27.2 percent over the same period in 2007.

Collections by Fort Smith regional counties

Sebastian County
September 2008: $2,623,356
September 2007: $2,256,285
up 16.2 percent
collected $23.14 million Jan.-Sept., up 11.6 percent over the same period in 2007.

Crawford County
September 2008: $580,872
September 2007: $507,001
up 14.5 percent
collected $5.28 million Jan.-Sept., up 13.7 percent over the same period in 2007.

Franklin County
September 2008: $256,393
September 2007: $200,673
up 27.7 percent
collected $2.17 million Jan.-Sept., up 23.5 percent over the same period in 2007.

Logan County
September 2008: $283,918
September 2007: $165,458
up 71.5 percent
collected $2.03 million Jan.-Sept., up 40 percent over the same period in 2007.