Regional sales tax collections up 11.2 percent in October

Judging from October sales tax collections, the full effect of a national recession has yet to hit the Fort Smith region.

Combined October sales tax collections for Crawford, Franklin, Logan and Sebastian counties was $3.48 million, up 11.2% over the same period in 2007.

Alma claims the highest year-to-date percentage gain for sales tax collections, with $2.02 million collected January-October, 21% more than the same period in 2007.

The sales tax numbers for Booneville don’t show clear economic harm from the loss of more than 800 jobs at the former Cargill meat processing plant. October tax collections in Booneville were up 4% over the same month in 2007, and the city has collected $1.01 million between January-October, up 9.2% over the same period in 2007.

The jobs were lost when a March 2008 fire consumed most of the 150,000-square-foot meat processing facility. An analysis by the University of Arkansas Center for Business and Economic Research in Fayetteville estimated the payroll loss at $18.3 million, with the loss of 800 jobs having a potential multiplier affect of 1,806 jobs lost in Logan County.

Regional economy watchers have cited three primary reasons for the increase in sales tax collections:
1. The obvious reason — increase in the amount of goods and services purchased in the region.

2. Purchases of construction materials related to repair resulting from April and June hail and wind storms.

3. Price increases on taxable goods and services (inflation).

It is difficult to quantify reasons behind increases/decreases in sales tax collections because state officials refuse to disclose sales tax data for the different categories of goods and services.

Top 10 cities — sales tax collections in the Fort Smith region

Fort Smith
October 2008: $3,473,395
October 2007: $3,168,572
up 9.6%
collected $35.43 million Jan.-Oct., up 11% over the same period in 2007.

Van Buren (Van Buren’s sales tax rate dropped 1 % in April 2008)
October 2008: $292,849
October 2007: $470,700
collected $4 million Jan.-Oct., down 13.8% over the same period in 2007.

Alma
October 2008: $207,854
October 2007: $162,098
up 28.2%
collected $2.02 million Jan.-Oct., up 21% over the same period in 2007.

Greenwood
October 2008: $151,351
October 2007: $135,054
up 11.2%
collected $1.62 million Jan.-Oct., up 15.1% over the same period in 2007.

Booneville
October 2008: $90,150
October 2007: $86,603
up 4%
collected $1.01 million Jan.-Oct., up 9.2% over the same period in 2007.

Ozark
October 2008: $77,189
October 2007: $60,443
up 27.7 %
collected $750,959 Jan.-Oct., up 18% over the same period in 2007.

Mansfield
October 2008: $28,095
October 2007: $26,919
up 4.3%
collected $277,867 Jan.-Oct., up 11.6% over the same period in 2007.

Mulberry
October 2008: $23,685
October 2007: $23,006
up 2.9%
collected $277,867 Jan.-Oct., up 2.5% over the same period in 2007.

Paris
October 2008: $26,984
October 2007: $21,122
up 18.2%
collected $254,291 Jan.-Oct., up 14.1% over the same period in 2007.

Charleston
October 2008: $23,272
October 2007: $20,474
up 13.6%
collected $250,198 Jan.-Oct., up 12.3% over the same period in 2007.

Collections by Fort Smith regional counties

Sebastian County
October 2008: $2,504,385
October 2007: $2,275,163
up 10%
collected $25.64 million Jan.-Oct., up 11.5% over the same period in 2007.

Crawford County
October 2008: $556,049
October 2007: $524,087
up 6%
collected $5.84 million Jan.-Oct., up 12.9% over the same period in 2007.

Franklin County
October 2008: $222,882
October 2007: $178,822
up 24.6%
collected $2.39 million Jan.-Oct., up 23.6% over the same period in 2007.

Logan County
October 2008: $201,578
October 2007: $154,201
up 30.7%
collected $2.03 million Jan.-Oct., up 39.1% over the same period in 2007.