Fort Smith, Sebastian County tax receipts up in November report

Fourth-quarter sales tax collections in Fort Smith and Sebastian County are attempting to end on a positive note, with the November report from the city of Fort Smith showing a more than 11% gain in countywide sales tax collections.

And because tax collections typically mirror consumer spending, the gains may indicate growing consumer confidence in the regional economy.

Each of the city’s 1% sales taxes (1% for streets and 1% for water and sewer projects) collected $1.584 million in October, up 1.04% from the same period in 2009. The collections were up 0.31% compared to budget estimates. (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 December are from taxes collected in October and transferred by merchants to the state in November. However, the city records the November remittance from the state of taxes collected in October on its November report.)

For the first 11 reporting months of 2010, each of the 1% taxes have collected $17.073 million, down 1.49% from the same period in 2009. That year-over-year rate of decline has dropped from 7% for the first two months of 2010, 6.79% for the first three months of 2010, 5.71% for the first four months, 4.36% for the first five months and 1.85% for the first nine months.

The city’s portion of the one-cent countywide sales tax was $1.165 million in the November report, up an impressive 11.14% from the same period in 2009. For the first 11 reporting months of 2010, the city has collected $13.707 million on its portion of the countywide tax, down 1.32% from the same period in 2009. Previously, the countywide year-over-year rate of decline has dropped from 5.6% for the first two months of 2010, 5.39% for the first three months of 2010, 4.79% for the first four months and 2.76% for the first nine months.

The countywide tax collection is critical because the revenue is a little more than 40% of the city’s general budget of roughly $40 million. A majority of the general fund budget general supports fire, police and other critical city functions. To date, the revenue from the countywide tax is $183,563 less than in 2009.

Sales tax collections in the region and the city of Fort Smith began to show weakness in the second quarter of 2009. That weakness began to improve in the second quarter of 2010, but slipped somewhat in the third quarter compared to the same period in 2009.

Tax collections in Crawford County and other cities in the region are making small gains in some cases, but it’s possible 2010 collections will mark two to three consecutive years of collection declines.

Sales tax collections in Crawford County for the first 10 months of 2010 total $5.219 million, up 0.02% compared to the 2009 period. Total county collections in 2009 were $6.178 million, down 11.17% compared to 2008.

In Van Buren, sales tax collections for the first 10 months of 2010 total $2.958 million, down 1.36% compared to the 2009 period. The Van Buren rate was changed in April 2008, making comparisons unavailable.

Sales tax collections in Alma for the first 10 months of 2010 total $1.88 million, down 3.17% compared to the 2009 period. Alma collections in 2009 totaled $2.333 million, down 4.66% compared to 2008.

Greenwood sales tax collections for the first 10 months of 2010 total $1.539 million, down 3.25% compared to the 2009 period. Greenwood collections in 2009 totaled $1.91 million, down 2.33% compared to 2008.

2010 SALES TAX COLLECTIONS
Countywide sales tax collection (with % comparison to 2009 month)
October 2010: $1.165 million (11.14%)
September 2010: $1.232 million (1.74%)
August 2010: $1.193 million (-5.9%)
July 2010: $1.315 million (0.2%)
June 2010: $1.262 million (4.09%)
May 2010: $1.256 million (1.09%)
April 2010: $1.308 million (-3.03%)
March 2010: $1.160 million (-4.90%)
February 2010: $1.140 million (-2.33%)
January 2010: $1.439 million (-8.05%)

Fort Smith sales tax collection
October 2010: $1.424 million (1.04%)
September 2010: $1.504 million (-0.3%)
August 2010: $1.584 million (0.02%)
July 2010: $1.627 million (3.99%)
June 2010: $1.578 million (5%)
May 2010: $1.555 million (1.47%)
April 2010: $1.646 million (-2.56%)
March 2010: $1.429 million (-6.28%)
February 2010: $1.398 million (-3.23%)
January 2010: $1.789 million (-9.77%)

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