Fort Smith’s sales tax revenues remain relatively stable through 2024. The July report shows the city’s share of the countywide tax is 1.3% above the budgeted estimate for the month and the road tax is 0.3% above estimate. However, the annual totals are still below last year’s.

The city’s share of Sebastian County’s 1% tax totaled $14.42 million between the January and July reports, a 0.03% increase from the $14.417 million received during the same period in 2023. In July, the city received $2.156 million from the tax, an increase from the $2.128 million received in July 2023, according to the tax report released by the city on Thursday (Aug. 22). The July report shows expenses in June.

The city’s share of the countywide tax is closely watched because the revenue provides money for the city’s general budget, a large portion of which goes to police, fire and other essential city services.

“Sales tax revenues for July increased slightly, which is an encouraging sign, but overall total sales tax revenues remained flat in 2024. We expect this to continue through the end of 2024, and given recent economic signs, including annual inflation at 3.0%, a rate cut by the Federal Reserve at its upcoming September meeting looks promising,” said Fort Smith City Manager Carl Geffken.

Fort Smith’s 1 percent road tax – used for maintenance and new construction of roads, bridges and drainage systems – totaled $17.351 million for the first seven reporting months of 2024, a 1.2% decrease from the $17.568 million reported for the same period in 2023.

Fort Smith City Manager Neal Martin said the city is on pace with sales tax revenues heading into 2023, which he recalled was a record year.

“This is still good news for the city,” Martin said.

In 2023, the city received $24.648 million in revenue from the city’s share of the countywide tax. Revenues in 2023 were $806,742 more than the city government budgeted to spend under the fund budget and $3.095 million more than tax revenues in 2022. The tax has seen annual increases over the past five years, with revenues increasing 9.6% in 2022 over 2021. Fort Smith’s 1% road tax brought in $29.924 million in 2023, 4.23% more than budgeted.

INFO ON PREVIOUS ANNUAL COLLECTION
Fort Smith: Imposition of a 1% sales tax on roads
2023: $29.924 million
2022: $28.65 million
2021: $26.667 million
2020: $22.66 million
2019: $21.73 million
2018: 21.503 million US dollars
2017: 21.204 million US dollars

Fort Smith’s share of the statewide sales tax of 1%
2023: $24.648 million
2022: $23.553 million
2021: $21.49 million
2020: 18.246 million US dollars
2019: 17.265 million US dollars
2018: 17.043 million US dollars
2017: 16.691 million US dollars

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