Fort Smith sales tax revenue ticks higher in the January report

Sales tax revenue is off to a good start for Fort Smith, with the January report showing an almost 5% gain in the city’s share of the 1% Sebastian County tax. The revenue, which is from December sales, was also above the city’s budget estimate.

The tax report, posted Monday (March 2) by Fort Smith Chief Financial Officer Andrew Richards, shows that the city’s share of the countywide tax was $2.383 million, up 4.9% compared with the $2.271 million in the January 2025 report.

The city’s share of the countywide tax provides money for the city’s general fund budget, with much of that budget paying for police, fire and other essential city services.

Until 2024, the tax had posted year-over-year gains for five years. The 2024 revenue was 0.95% lower than 2023. Fort Smith’s share of the Sebastian County sales tax was $24.489 million in 2025, 0.02% lower than $24.493 million in 2024 and 2.5% lower than the $25.117 million budget estimate for the year.

The city has a full-year estimate of $24.506 million for the countywide tax, which would be just 0.07% above 2025 revenue of $24.489 million.

The city’s 1% tax, which now partially funds federally-mandated sewer system work in addition to street, bridge, and drainage projects, totaled $2.858 million, up 0.9% compared with $2.833 million in the January 2025 report. The January revenue was 0.11% below the budget estimate. The 1% city sales tax generated $29.513 million in 2025, down 0.01% from $29.513 million in 2024.

Richards said 69% of the tax revenue comes from retail sales, lodging, and the restaurant sector. He said the January numbers in the sectors “are the strongest they have been during January compared to the past three years.”

“Wholesale Trade, Manufacturing, and Construction Sectors retreated in January from the past two years, are closer to January 2023 numbers, and offset some of the gains in the larger sectors,” Richards also noted in the report.

Net sales tax receipts – gross receipts minus rebates – in the January report totaled $5.881 million, up 0.9% compared with January 2025 net receipts of $5.825 million.

PREVIOUS ANNUAL COLLECTION INFO
Fort Smith 1% sales tax collection for streets and consent decree
2025: $29.513 million
2024: $29.516 million
2023: $29.924 million
2022: $28.65 million
2021: $26.667 million
2020: $22.66 million
2019: $21.73 million

Fort Smith portion of 1% countywide sales tax
2025: $24.489 million
2024: $24.493 million
2023: $24.648 million
2022: $23.553 million
2021: $21.49 million
2020: $18.246 million
2019: $17.265 million