Fort Smith sales tax numbers beat 2016 performance by less than 2% through April 

City sales tax revenues went through a “timing issue” that caused a broad swing across March and April, according to Fort Smith Finance Director Jennifer Walker.

In a Thursday (June 8) memo to Mayor Sandy Sanders, City Administrator Carl Geffken, the Board of Directors, and department heads, Walker highlighted a 14-16% swing from underperformance to exceeding expectations over the 60-day period.

The 2% city sales tax in March 2017 accounted for $3.353 million in revenue, which was 7.4% less than March 2016’s $3.62 million and 7.4% below budget for the month. However, city sales tax revenue for April 2017 was $3.723 million, 8.2% more than last April’s $3.44 million and 8.2% above budget for the month. The city sales tax revenue to date is $14.529 million, up 1.3% above last year’s $14.344 million and 1.3% above the budget forecast. Total revenue to date is $116,162 (street, bond, park/fire) more than the budget estimate.

March and April reports reflect tax revenue on transactions in January and February, respectively.

On the county side, the city’s share of the 1% countywide sales tax for March 2017 was $1.318 million — 7.1% less than March 2016’s $1.419 million and 7.8% below budget. However, county sales tax for April 2017 was $1.459 million, or 7.6% more than last April’s $1.355 million and 6.9% above budget for the month. To date, the city’s share of county sales tax revenue is $5.71 million, which is 1.8% above last year’s $5.606 million and 1.1% above budget, or $63,696 more than budget expectations.

“The large swing from March to April is consistent across sales tax and indicates a timing issue for the March/April periods. Finance expects sales tax revenues to remain consistent with budget for the foreseeable future,” Walker said.

The two months show gains from Walker’s last report in which YTD figures were less than 1% above expectations on city and county sides.

The city of Fort Smith receives 3.25% of the area’s 9.75% sales tax. From that figure, 2% is a city sales tax divvied up between the streets, drainage, and bridges program (1%), collections for bond issues (0.75%), and fire and parks (0.25%, evenly split between the two). The state receives the remaining 6.5%.

Collections in other Arkansas counties in or connected to the Fort Smith metro posted gains in the first three months of 2017. Crawford County tax revenue was $3.009 million in the January-March period, up 4.09% compared to the same period in 2016. Franklin County revenue was $1.012 million, up a healthy 59% compared to the same period in 2016. Logan County, which saw a 1% tax rate increase in January, posted tax revenue of $1.044 million in the first three months, up 94%. Scott County tax revenue was $611,230, up 5.6% for the first three months.

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 one-third of the reporting year complete, total revenue is at 34.34% 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 one-third of the reporting year complete, total revenue is at 34.44% 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