Fort Smith sales tax revenue up almost 5% through February

Fort Smith’s share of the 1% Sebastian County sales tax in the first two reporting months of 2026 is up almost 5%, with total gross sales revenue returned to the city in February the most in the past three years, the city of Fort Smith reported Tuesday (March 31).

The city’s share of the 1% countywide tax in the February report was $1.876 million, up 4.6% compared with the $1.794 million in the same period of 2025. Revenue from the tax in the first two reporting months of 2026 totals $4.259 million, up 4.8% compared with the same period in 2025. The revenue in the first two months is 0.63% above the city’s budget estimate.

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 $2.251 million in the February report, up 4.9% compared with the February 2025 report.

Revenue from the 1% tax through February totaled $5.109 million, up 2.6% compared with the same period in 2025. The revenue is 0.27% above the budget estimate. The 1% city sales tax generated $29.513 million in 2025, down 0.01% from $29.513 million in 2024.

Following were notes from Fort Smith Finance Director Andy Richards in the Tuesday tax report.
• Total gross receipts for February 2026 were more than the same month in the past three years.
• Retail trade, representing 51% of total, trailed only February of 2023 by 2.3%.
• Food services sales (12% of total) are the strongest they have been during February compared to the past three years by over 2.3%.
• Most of the largest sectors are up except for wholesale trade which retreated in February from the same month in the past three years from 2.6%-12.6%.
• Manufacturing trailed only February 2024 by 3.9%.
• Rebates and audits were lower in February 2026 than the past two years, resulting in the city’s net receipts being higher in February 2026 compared to the past three years.

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