Slight dip in Fort Smith sales tax revenue through October report

BusinessFort Smith

by Talk Business & Politics staff ([email protected]) ago 0 views 

Fort Smith sales tax revenue through the October report is down slightly from the record pace in 2023, and is also just below the budget estimate, according to recent figures from the City of Fort Smith.

The city’s share of the 1% Sebastian County tax in the October report was $2.018 million, up 1.8% compared with the same month in 2023. The October revenue was 1.13% above the city’s budget estimate.

In the first 10 reporting months of the year, the city’s portion of the countywide 1% tax is $20.634 million, down 0.1% compared with the same period in 2023, and 0.03% below the 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.

Fort Smith’s 1% street tax – used for maintenance and new construction on streets, bridges and drainage – totaled $2.407 million in the October report, down 1.4% compared with the $2.441 million in the October 2023 report. The October revenue was below the budget estimate by 1.9%

Revenue from the 1% street tax in the first 10 reporting months of 2024 is $25.061 million, down 1.9% below the same reporting period in 2023, and 1.26% below the budget estimate.

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