Fort Smith tax collections up in January; area tax revenue mixed in 2010

2010 Christmas sales were relatively strong in Fort Smith, with the city’s collection of a 1% sales tax up 5.4% compared to the 2009 period.

Also, the most recent monthly tax report marks the third consecutive month of comparable collection gains — a welcome end to a collection year that began with four straight months of declines.

Each of the city’s 1% sales taxes (1% for streets and 1% for water and sewer projects) collected $1.886 million in the January report, up 5.41% from the same period in 2010. The collections were up 3.86% 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 February are from taxes collected in December and transferred by merchants to the state in January. However, the city records the February remittance from the state of taxes collected in October on its January report.)

Fort Smith’s share of the county 1% sales tax increased 2.82% compared to the same period in 2010. The collections are down 0.08% compared to the revenue estimate.

For the 2010 reporting period, each of the city’s 1% sales taxes collected $18.614 million, down 0.87% compared to 2009 and down 9.69% compared to 2008. The city’s portion of the 1% countywide sales tax during the 2010 reporting period was $14.892 million, down 1.03% compared to the 2009 period. The 2010 total is 10.34% lower than the 2008 total.

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.

Kara Bushkuhl, director of finance for the city, noted in a memo to City Administrator Ray Gosack that countywide collections were $207,983 below estimates. However, other general fund revenue sources were more stable. The franchise fees totaled $6.492 million, or $392,100 more than the estimated revenue. Property tax proceeds received by the city totaled $6.604 million and was only $3,968 less than estimates. Also, court fines and forfeitures exceeded the estimated revenue by $241,000.

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, slipped somewhat in the third quarter compared to the same period in 2009, but began to again see positive trends in the fourth quarter.

2010 REGIONAL TAX COLLECTIONS
Tax collections in Crawford and Sebastian counties and other cities in the region show mixed results with respect to tax collections and the consumer spending such collections reflect.

Sales tax collections in Crawford County for 2010 totaled $6.258 million, up 1.29% compared to the 2009. Total county collections in 2009 were $6.178 million, down 11.17% compared to 2008.

In Van Buren, sales tax collections for 2010 were $3.568 million, up 0.5% compared to the 2009 period. The Van Buren rate was changed in April 2008, making comparisons unavailable.

Sales tax collections in Alma during 2010 totaled $2.252 million, down 3.45% compared to the 2009 period. Alma collections in 2009 totaled $2.333 million, down 4.66% compared to 2008.

Sales tax collections in Sebastian County totaled $27.605 million, up 0.28% compared to 2009. Collections in 2009 were down 11.27% compared to 2008.

Greenwood sales tax collections in 2010 was $1.863 million, down 2.46% compared to the 2009 period. Greenwood collections in 2009 totaled $1.91 million, down 2.33% compared to 2008.

In Franklin County, 2010 collections were $2.54 million, up 2.38% compared to 2009. Collections in Ozark during 2010 totaled $863,211, down 0.83% compared to 2009.

Logan County collections were $1.8 million in 2010, down 11.24% compared to 2009.

2010 SALES TAX COLLECTIONS
Countywide sales tax collection (with % comparison to 2009 month)
December 2010: $1.48 million (2.82%)
November 2010: $1.84 million (2.49%)
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
December 2010: $1.88 million (5.41%)
November 2010: $1.54 million (6.58%)
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)
2010: $37.229 million
2009: $37.554 million
2008: $41.226 million
2007: $37.858 million
2006: $36.840 million

Fort Smith portion of 1% countywide sales tax
2010: $14.89 million
2009: $15.04 million
2008: $16.61 million
2007: $15.15 million
2006: $14.71 million