Regional sales tax collections up in 2011

Sales tax collections in Fort Smith during 2011 were up 3.9%, and the city’s portion of the countywide sales tax was up 1.77% for the year, with the increases ending a two-year decline.

Also, 2012 is off to a good start, with the January report showing an 8.63% increase in city sales tax collections compared to the January 2011 report.

In the region, combined county collections in Crawford, Franklin, Logan and Sebastian counties totaled $39.502 million during 2011, up 3.4% compared to 2010. (See end of story for details on county collections.)

Each of the city’s 1% sales taxes (1% for streets and 1% for water and sewer projects) generated $19.341 million in the 2011 reporting period, up 3.9% from 2010. The city’s portion of the countywide sales tax during 2011 totaled $15.155 million, up 1.77%.

In the January 2012 report, each of the 1% city sales taxes collected $2.049 million, up 8.63%, and up 9.25% compared to budget estimates. (Because the state of Arkansas has a two-month delay in reporting collections back to the cities, the city of Fort Smith — for budgeting purposes — has historically reflected the collections on a one-month delay. Which is to say, the tax collections remitted to cities in January are from taxes collected in November and transferred by merchants to the state in December.)

The city’s portion of the countywide tax in the January report was $1.559 million, up 5.32% compared to January 2011 and up 4.6% above the budget estimate.

“Locally, current year-on-year tax collections at the county level indicate retail activity has stabilized and has moderately improved. While there is a lag in sales tax collection reporting by the state, the data suggest local retail activity has recovered from the sharp downturn experienced during 2009,” noted economist Jeff Collins as part of the fourth quarter 2011 The Compass Report.

Improvements should help reduce budget pressures city officials have faced in the past three years. A majority of the general fund budget — funded by the countywide tax collection proceeds — supports fire, police and other critical city functions. The city made more than $1.43 million in budget cuts in 2010 to respond to revenue shortfalls. The biggest cut was a $717,000 reduction in payments to the city’s health & wellness fund. The cuts in 2010 and pushed forward into 2011 also include a decrease of about 28 full-time positions, and a $790,000 proposed cut to payments into the health & wellness fund.

The city’s 2011 revenue from franchise fees was $6.571 million, up 1.23% compared to 2010. Revenue from property tax collections during 2011 was $11.458 million, up 3.17% compared to 2010.

PREVIOUS ANNUAL COLLECTION INFO
2% sales tax collection (1% for streets; 1% for water/sewer bonds)
2011: $38.683 million
2010: $37.229 million
2009: $37.554 million
2008: $41.226 million
2007: $37.858 million
2006: $36.840 million

Fort Smith portion of 1% countywide sales tax
2011: $15.155 million
2010: $14.89 million
2009: $15.04 million
2008: $16.61 million
2007: $15.15 million
2006: $14.71 million

PROPERTY TAX (ad valorem) REVENUE
2011: $11.458 million
2010: $11.105 million
2009: $10.092 million
2008: $9.381 million

FRANCHISE FEE REVENUE (with % comparison to previous year)
2011: $6.571 million (1.23%)
2010: $6.492 million (8.37%)
2009: $5.99 million (-18.68%)
2008: $7.366 million (8.97%)
2007: $6.76 million (-8.72%)
2006: $7.406 million (8.38%)

REGIONAL TAX COLLECTIONS (with selected cities in each county)
Crawford County
2011: $6.248 million
2010: $6.258 million

Alma
2011: $2.257 million
2010: $2.252 million

Van Buren
2011: $3.613 million
2010: $3.568 million

Franklin County
2011: $2.644 million
2010: $2.54 million

Charleston
2011: $311,754
2010: $299,901

Ozark
2011: $886,531
2010: $863,211

Logan County
2011: $1.991 million
2010: $1.8 million

Booneville
2011: $1.064 million
2010: $890,097

Paris
2011: $319,759
2010: $288,350

Sebastian County
2011: $28.619 million
2010: $27.605 million

Greenwood
2011: $1.914 million
2010: $1.863 million

Mansfield
2011: $363,919
2010: $395,912