Sales tax figures point to December shopping increase

December shopping in Fort Smith during the midst of a national recession remained relatively strong, according to sales tax figures from the city of Fort Smith.

Sales taxes collected from December sales in the city totaled $1.983 million , up 2.05% compared to the same period in 2007. The city’s portion of a countywide 1% sales tax totaled $1.566 million, up 4.54% over the same period in 2007.

(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 February are from taxes collected in December and transferred by merchants to the state in January.)

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.

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