Fort Smith sales tax revenue up almost 5% in the first quarter of 2026

Fort Smith sales tax revenue is off to a good start in 2026, with the city’s share of the Sebastian County 1% tax up 5.3% in the March report, above the 4.2% budget estimate. Revenue from a 1% city tax was up 6.3% in the March report, which was above the 5.3% budget estimate.

The tax data, provided Wednesday (April 29) by the city of Fort Smith, showed that the city’s share of the countywide tax was $1.942 million in the March report, up 5.3% compared with $1.845 million in March 2025. Until 2024, the tax had posted year-over-year gains for five years. The revenue in 2024 was 0.95% lower than 2023.

Fort Smith revenue from the countywide tax in the first quarter of 2026 was $6.202 million, up 4.9% compared with the same period in 2025. 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.

The city’s 1% tax, which now partially funds federally-mandated sewer system work in addition to street, bridge, and drainage projects, was $2.347 million in the March report, up 6.3% compared with March 2025. The revenue in the first quarter of 2026 was $7.456 million, up 3.7% compared with $7.186 million in the same period of 2025.

“Tax revenues are vital to the funding of core, quality services of the local government,” said Fort Smith Director and Vice Mayor Jarred Rego. “Revenues exceeding projections means that more resources are available for crucial infrastructure and public safety needs. We are so grateful that, even in the face of tough economic headwinds, people continue to spend and utilize their hard-earned resources here in Fort Smith.”

The city also collects a second 1% tax, with 62.5% of the revenue funding consent decree work, 12.5% supporting the city’s police department, and 25% providing funds for the city’s parks and recreation department.

Following were some of the notes in the March revenue report from Fort Smith Finance Director Andy Richards.

• Total gross receipts for March 2026 were more than the same month in the past three years.
• Retail trade, representing 52% of total, was 11% higher than March 2025 and higher than the previous three years.
• Food services sales — 12% of total — trailed only March 2024 by 0.4%. They were 6.5% higher than March 2025.
• Manufacturing sales tax revenue trailed only March 2024 by less than 0.01%.
• Rebates+audits were close to the average for the past four years, $168,839, resulting in the city’s net receipts being higher in March 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