Fort Smith sales taxes see decline

For the first time since 2003, the February sales tax report for the city of Fort Smith saw a decline when compared to February of the previous year.

The city posted February tax revenue from its 1% street tax program of $1.445 million, down 5.13% from February 2008. For the first two months of 2009, revenue collected was $3.428 million, down 1.1% from $3.467 million collected in the same period of 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 March are from taxes collected in January and transferred by merchants to the state in February.)

The city’s share of the county 1% sales tax ($1.167 million) decreased 5.19% compared  for February 2008.  Year-to-date, the county sales tax is up 0.15% compared to the same period in 2008.

PREVIOUS COLLECTION INFO
• 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