Fort Smith sales tax collections up 3% in June, almost at break-even through the first half of 2018

by Aric Mitchell (amitchell@talkbusiness.net) 197 views 

Fort Smith sales tax revenues continued to improve in June with $3.632 million collected from the city’s 2% tax, 1% of which goes to streets, 0.75% to bond issues, and 0.25% divided evenly between parks and fire departments.

The performance was an improvement of just over 3% from June 2017’s $3.524 million. Year-to-date, it moved the city slightly closer to break-even with $21.392 million through the first six months against $21.472 million last year, a decline of 0.37%. At the end of May, the city was 1.04% behind.

To put the gain in further perspective, the city finished April with funds totaling $14.33 million, or 1.4% below the previous year’s tally of $14.529 million. Fort Smith Finance Director Jennifer Walker noted in a Wednesday (July 25) memo, YTD city sales tax revenue is 1% ahead or $213,990 (street, bond, park/fire) after revising budget estimates.

In keeping with gains on the city side, the city’s share of county sales tax revenues for June 2018 was $1.445 million, or 3.58% more than last June’s $1.395 million and 1.1% above the revised budget for the month. Through the first six months, the number is slightly up at $8.462 million against $8.447 million in 2017, a gain of 0.18% and $89,145 over the revised budget estimate.

“Overall, we see a moderate improvement in sales tax figures in June. One month does not make a trend, but we are pleased with the progress and will continue to monitor trends closely,” said Fort Smith Finance Director Jennifer Walker.

At a June 19 Board of Directors meeting, the Board — acting on recommendations from Walker — agreed to cut revenue expectations for the year by $330,000 (1.93%) from the county side and $1.286 million (3%) from estimated city sales tax receipts. To that point, performance was about $544,747 lower than expected (combined city and county).

Also on Wednesday, Walker provided updates on franchise fees and property taxes. Franchise fees (paid quarterly) were “17% below budget,” but “1.7% above budget when adjusted for the timing of payments.” As for year-to-date property taxes, the city has received $4.6 million, which is approximately 14% above budget when adjusted for the timing of payments, Walker said.

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)
2017: $42.408 million
2016: $42.313 million
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
2017: $16.691 million
2016: $16.58 million
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

Comments

comments