Fort Smith sales tax revenue up more than 6% through September

Fort Smith’s share of the Sebastian County 1% sales tax was up more than 4% compared with September 2022, according to the September sales tax report released by the city. September numbers reflect August transactions.

The September sales tax report shows the city’s share of the 1% Sebastian County sales tax totaled $2.105 million, up 4.26% compared to the $2.019 million reported in September 2022, and up 2.6% compared with the city’s budget estimate.

The city’s share of the countywide tax is closely watched because the revenue provides money for the city’s general fund budget, with much of that budget paying for police, fire and other essential city services. The first nine months of 2023 showed revenue from the tax at $18.65 million, 6.04% higher than the $17.787 million the tax reported in the first three quarters of 2022. Sebastian County voters renewed the tax, which generated $33.768 million in 2022, for another 10 years in a special election Aug. 8.

Fort Smith’s 1% street tax – used for maintenance and new construction on streets, bridges and drainage – reported $2.524 million, up 2.83% from the $2.454 million reported in September 2022. Through September, the tax has generated $22.62 million, 5.08% more than the $21.526 million reported in the first eight months of 2022.

“Fort Smith is still growing but at a more moderate pace and is well positioned should there be a recession,” said City Administrator Carl Geffken. “The moderate growth will increase when the construction on the 188th begins and when people begin moving into Fort Smith for the FMS (Foreign Military Sales) project. We are glad to have growing sales tax collections at a moderate pace, since growth that is too fast could overheat the economy.”

In 2022, Fort Smith’s share of the 1% Sebastian County sales tax was $23.553 million, 9.6% higher than 2021 and up 9.05% from budget estimates for the year. The 2022 total was $1.955 million more than city officials budgeted to spend within the fund budget and $2.06 million, more than the tax brought the city in 2021.

The 1% street tax generated $28.85 million, up 7.4% over 2021 and up 7.65% from budget estimates. The 2022 total was $2.05 million more than city officials budgeted to spend on the street tax program.

PREVIOUS ANNUAL COLLECTION INFO
Fort Smith 1% sales tax collection for streets
2022: $28.85 million
2021: $26.667 million
2020: $22.66 million
2019: $21.73 million
2018: $21.503 million
2017: $21.204 million
2016: $21.156 million

Fort Smith portion of 1% countywide sales tax
2022: $23.553 million
2021: $21.49 million
2020: $18.246 million
2019: $17.265 million
2018: $17.043 million
2017: $16.691 million
2016: $16.58 million