Fort Smith sales tax revenue up more than 5% through November

November sales tax numbers reflect sales tax gains once again with Fort Smith’s share of the Sebastian County 1% sales tax up 3.3% compared to November 2022, according to the city’s November sales tax report.

November’s numbers reflect October transactions.

The November sales tax report shows the city’s share of the 1% Sebastian County sales tax totaled $1.997 million, up 3.3% from the $1.934 million reported in November 2022. The amount is also 1.67% more than the city budgeted to receive from the tax in November.

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 11 months of 2023 showed revenue from the tax at $22.632 million, 5.16% higher than the $21.522 million the tax reported in through November 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 $2.416 million in November, up 1.17% from the $2.388 million in November 2022. The revenues were 1.65% higher than the $2.376 million the city budgeted for the month. Through November, the tax has generated $27.477 million, 4.64% more than the $26.259 million reported in the same period of 2022.

“November’s sales tax collections were above 2022 collections and above budget by 1.65%,” said City Administrator Carl Geffken. “If we can maintain a slow and steady growth rate for next month and have higher collections in January’s report for December collections, the forecast for 2024 continues to be good. The forecast is bolstered by recent news of price reductions for some staple products, no change in interest rates, and a healthy job market.”

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