Fort Smith February sales tax revenue below budget estimates

Fort Smith sales tax revenue was down in February, following the trend of the past 12-plus months. The city’s share of the Sebastian County sales tax was $1.79 million in February, down 1.05% from $1.81 million in February 2024.

According to the city’s February sales tax report, the February county tax share was down 2.99% from the $1.85 million forecast by the city. The February sales tax report measures January’s transactions.

The year-to-date tax total is $4.06 million, 2.14% less than the $4.15 million generated through February 2024. The tax brought in $24.49 million in 2024, 0.95% lower than 2023.

The city’s share of the countywide tax is important 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.

“While we are falling slightly behind budget projections for sales and use tax revenues, we are holding steady with the past two years, which were the two highest on record,” said Acting City Administrator Jeff Dingman. “While we aren’t seeing the projected growth in revenues, the fact that we are staying on par with the two previous years in the face of some uncertainty indicates our local economy is staying strong.”

Fort Smith’s 1% street tax — used for maintenance and new construction on streets, bridges, and drainage — generated $2.14 million in revenue in February, which was actually a gain of 0.09% from the $2.14 million generated in February 2024. However, the total revenue from the tax reported in February was down 1.88% from the city estimate of $2.18 million.

The tax has generated $4.97 million in revenue so far in 2024, 0.06% less than the $4.98 million generated in the first two months of 2024. The tax revenue totaled $29.51 million in 2024.

“Consumer spending continues to drive the local economy, and as long as that continues there should be a positive outlook on the city’s financial health,” Dingman said.

PREVIOUS ANNUAL COLLECTION INFO
Fort Smith 1% sales tax collection for streets
2024: $29.51 million
2023: $29.92 million
2022: $28.65 million
2021: $26.66 million
2020: $22.66 million
2019: $21.73 million
2018: $21.5 million

Fort Smith portion of 1% countywide sales tax
2024: $24.49 million
2023: $24.64 million
2022: $23.55 million
2021: $21.49 million
2020: $18.24 million
2019: $17.26 million
2018: $17.04 million
2017: $16.69 million