Fort Smith sales tax revenues up almost 10% for May, ‘too early to tell’ if there’s a trend

Fort Smith revenues were up significantly for May on city and county sales tax sides, but it may be too early to call it a trend, according to Fort Smith Finance Director Jennifer Walker.

“While we like to see the large increase in May 2017 vs. May 2016, I recommend reserving any action to determine if this is the beginning of a new trend or a timing item,” Walker said in a memo sent late Thursday (June 29) to Mayor Sandy Sanders, city administration, and the city’s Board of Directors.

City sales tax revenue for May 2017 was $3.416 million, or 8.3% more than last May’s performance of $3.154 million and 8.4% above budget for the month. To date, city sales tax revenue is $17.946 million, or 2.6% above last year’s $17.582 million and 2.6% above budget (roughly $364,096 above budget across street, bond, and park/fire departments).

From the overall total, the city’s streets program received the majority share at $8.973 million through the May report while the 2012 bond series accounted for $6.73 million and the 1/4-cent sales tax split evenly between parks and fire departments received $2.243 million.

The May report reflects tax revenue on transactions in March.

The city’s share of the county sales tax for May was $1.34 million, or 9.9% more than last May’s $1.22 million and 9.1% above budget. To date, the city’s share of county is $7.051 million — 3.3% above last year’s $6.829 million and 2.6% above budget. Total revenue to date is $175,570 more than the budget estimate.

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%.

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 41.67% of the reporting year complete, total revenue is at 42.41% 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 41.67% of the reporting year complete, total revenue is at 42.53% 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