Fort Smith sales tax revenue flat through July report

Fort Smith sales tax revenue is relatively flat through 2024. The July report shows the city’s share of the countywide tax is 1.3% above the budgeted estimate for the month and the street tax is 0.3% above the estimate. But the yearly totals are still below last year’s.

The city’s share of the 1% Sebastian County tax between the January and July reports totaled $14.42 million, up 0.03% from the $14.417 million in the same period in 2023. In July, the city received $2.156 million from the tax, up compared with the $2.128 million in July 2023, according to the tax report posted Thursday (Aug. 22) by the city. The July report indicates spending in June.

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.

“Sales tax collections for July were up slightly, which is an encouraging sign, but overall total sales tax collections in 2024 have been flat. We expect this to continue through the end of 2024 and given the latest economic signs, including an annual inflation rate at 3.0%, an interest rate decrease by the Federal Reserve looks promising at their upcoming meeting in September,” said Fort Smith City Administrator Carl Geffken.

Fort Smith’s 1% street tax – used for maintenance and new construction on streets, bridges and drainage – totaled $17.351 million in the first seven reporting months of 2024, down 1.2% compared with the $17.568 million reported in the same period in 2023.

Fort Smith City Director Neal Martin said the city is keeping pace in sales tax collections with 2023, which he reminded was a record-setting year.

“This is still good news for the city,” Martin said.

In 2023, the city received $24.648 million in revenue from the city’s share of the countywide tax. The 2023 revenue was $806,742 more than city officials budgeted to spend within the fund budget and $3.095 million more than the tax generated in 2022. The tax has posted year-over-year gains for the past five years with 2022 revenue up 9.6% over 2021. Fort Smith’s 1% street tax generated $29.924 million in 2023, up 4.23% over the budget estimate.

PREVIOUS ANNUAL COLLECTION INFO
Fort Smith 1% sales tax collection for streets
2023: $29.924 million
2022: $28.65 million
2021: $26.667 million
2020: $22.66 million
2019: $21.73 million
2018: $21.503 million
2017: $21.204 million

Fort Smith portion of 1% countywide sales tax
2023: $24.648 million
2022: $23.553 million
2021: $21.49 million
2020: $18.246 million
2019: $17.265 million
2018: $17.043 million
2017: $16.691 million