Fort Smith sales tax numbers outperforming expectations through February

Fort Smith city and county sales tax numbers are off to a good start after closing 2016 with slight gains in the wake of a $1.41 million downward budget revision last August.

For 2017, the city has exceeded budget expectations for January and February.

In a memo to Mayor Sandy Sanders, the Board of Directors, City Administrator Carl Geffken and department heads on Tuesday (March 28), Fort Smith Finance Director Jennifer Walker said city sales tax revenue for January was $4.296 million, 3.4% more than January 2016’s numbers as well as budget expectations of $4.176 million. For February, city sales tax revenue growth was less robust, but still managed to exceed the same period in 2016 as well as budget expectations by 0.9% at $3.156 million versus $3.143 million in 2016.

The January and February reports reflect tax revenue on transactions in November and December, respectively.

Year-to-date, total revenue is $7.452 million, 2.3% above last year’s performance and budgeting of $7.319 million. Combined revenue from the city’s four major streams $133,553 more than the budget estimate.

The city runs a 2% sales tax program consisting of a 1% allocation to streets with an additional 0.75% for 2012 Revenue Bonds and 0.25% split evenly between the fire and parks departments. From this 2% fund, January and February saw a total of $3.726 million going to streets, $2.794 million to bonds, and $931,569 to fire/parks.

On the county sales tax side, the city’s share of revenues for January was $1.678 million, or 5.7% more than January 2016 and 5% above the budgeted amount of $1.599 million. The county sales tax share for February barely broke even with $1.254 million, or 0.7% more than last February and 0.03% above roughly the same budgeted amount. Year-to-date, the revenue totals $2.933 million, 3.5% above last year and 2.8% above the expected $2.853 million, an exact difference of $80,377.

PREVIOUS ANNUAL SALES TAX COLLECTION INFO

Fort Smith 2% sales tax collection (1% for streets; 0.75% for 2012 water/sewer bonds; 0.25% for fire and parks)
2016: $42.313 million (With 16.67% of the year complete, total revenue is at 17.61% of last year’s total)
2015: $40.76 million
2014: $40.198 million
2013: $38.938 million
2012: $39.21 million
2011: $38.683 million
2010: $37.229 million
2009: $37.554 million
2008: $41.226 million
2007: $37.858 million
2006: $36.84 million

Fort Smith portion of 1% countywide sales tax
2016: $16.58 million (With 16.67% of the year complete, total revenue is at 17.69% of last year’s total)
2015: $16.09 million
2014: $15.625 million
2013: $15.353 million
2012: $15.279 million
2011: $15.15 million
2010: $14.89 million
2009: $15.04 million
2008: $16.61 million
2007: $15.15 million
2006: $14.71 million