Declines continue for area sales tax collections

Fort Smith sales tax collections continue to fall but the decline is less than the 8.9% dip in 2009 compared to 2008.

A February report from City Finance Director Kara Bushkuhl shows $1.398 million in collections on each of the city’s one-cent sales taxes, down 3.2% from the same period in 2009.

The February report, which measures January commerce, follows a poor report of December’s holiday sales. December retail sales in Fort Smith, as measured by sales tax collections, were down 9.7% compared to the same period in 2008. Retail sales in Sebastian County for December were down 8% compared to the same period in 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 to cities in March are from taxes collected in January and transferred by merchants to the state in February. However, the city records the March remittance from the state of taxes collected in January on its February report.)

For the first two months of 2010, the city has collected $3.188 million for each of the one-cent taxes, down 7% from the same period in 2009.

The city’s portion of the one-cent countywide sales tax was $1.140 million in the February report, down 2.3% from the same period in 2009. For the first two months of 2010, the city has collected $2.58 million on its portion of the countywide tax, down 5.6% from the same period in 2009.

January sales tax revenue in Van Buren was $289,983, down 2.7% compared to January 2009, according to the Arkansas Department of Finance and Administration. The DFA report shows that Crawford County posted $524,282 in January, up 5.7% compared to January 2009.

The DFA report also shows Greenwood with $152,897 in January sales tax proceeds, down 0.2% compared to the 2009 period.

• PAST FOUR MONTHS
Countywide sales tax collection
February 2010: $1.140 million
January 2010: $1.439 million
December 2009: $1.156 million
November 2009: $1.048 million

Fort Smith sales tax collection
February 2010: $1.398 million
January 2010: $1.789 million
December 2009: $1.446 million
November 2009: $1.409 million

• PREVIOUS ANNUAL COLLECTION INFO
2% sales tax collection (1% for streets; 1% for water/sewer bonds)
2009: $37.554 million
2008: $41.226 million
2007: $37.858 million
2006: $36.840 million

Fort Smith portion of 1% countywide sales tax
2009: $15.04 million
2008: $16.61 million
2007: $15.15 million
2006: $14.71 million