Fort Smith sales tax collections see growth in 2008

Fort Smith sales tax collections for 2008 were up more than 6% over the budget estimate and almost 9% more than 2007 collections — all good news in a struggling economy.

Also, the city’s portion of the Sebastian County 1% sales tax in 2008 was $16.61 million, up 9.6% over 2007 collections.

Kara Bushkuhl, director of finance for the city of Fort Smith, reported the numbers Friday (Jan. 30) to the city administration and the city board of directors.

The relatively strong sales tax collections continues the trend seen in October. Combined October sales tax collections for Crawford, Franklin, Logan and Sebastian counties was $3.48 million, up 11.2% over the same period in 2007.

Commonly cited as reasons for the regional sales tax collection gains are a fundamental increase in the amount of goods and services purchased in the region, purchases of construction materials related to repair resulting from April and June hail and wind storms, and price increases on taxable goods and services (inflation).

2% sales tax collection (1% for streets; 1% for water/sewer bonds)
2008: $41.226 million
2007: $37.858 million
2006: $36.840 million

Fort Smith portion of 1% countywide sales tax
2008: $16.61 million
2007: $15.15 million
2006: $14.71 million

(The annual tax receipts represent taxes collected between November 2007 and November 2008. Because the state of Arkansas has a two-month delay in reporting collections back to the cities, the city of Fort Smith — for budgeting purposes — has historically reflected the collections on a one-month delay. Which is to say, the tax collections remitted back to the cities in January are from taxes collected in November and transferred by merchants to the state in December. Yes, it is confusing. State government is involved.)