Fort Smith sales tax revenue up 15% through August report
Fort Smith’s share of the Sebastian County sales tax brought the city $ 1.81 million in August, up 12.71 percent from the $ 1.6 million in August 2020, according to the city’s August sales tax report.
The figures in the August report reflect the transactions for July. In the 2021 budget, the city earmarked $ 1.6 million, the same amount as the sales tax generated in July 2020, so revenue is up 12.71% from budget.
In the first eight months of the year, the city raised $ 13.8 million from its share of the county’s sales tax, a 15.02% increase from the $ 11.998 million collected until August 2020. The city’s share of the county-wide tax is important as the revenues provide money for the city’s general fund budget, with a large part of this budget going to the police, firefighters and other essential city services.
Fort Smith’s 1% street tax – used for maintenance and new construction on streets, bridges and drainage – generated $ 2.23 million in August, an 11.55% increase from to the $ 2 million of August 2020. Again, the budget estimate was what the city did in August. last year, revenues are therefore 11.55% higher than the estimated budget. So far for the year, the city has collected $ 17.304 million in tax, up 15.85% from the $ 14.938 million collected in the first eight months of 2020.
âThe sales tax collection for August was very high, again reflecting the strength of the local economy. I am optimistic that current trends will continue for the foreseeable future, âsaid City Manager Lavon Morton.
Fort Smith City Administrator Carl Geffken said while the administration plans to increase sales tax estimates for 2022 for budget purposes, it will need to look at the sales tax collected first. in September. September sales tax collections will be reported in the October report, which will be released in November.
âSeptember is the first full month after returning to school and work after the summer and if tax revenues remain above budget, we will be comfortable increasing budgeted revenues,â Geffken said.
In 2020, Fort Smith’s share of Sebastian County’s 1% sales tax was $ 18.246 million, up 5.7% from 2019 and 5.52% from estimate city ââbudget. The 2020 total was $ 953,824 more than what city officials had planned to spend in the general fund budget. Tax has seen year-over-year gains over the past five years, but the 2020 jump was the largest seen during that time period.
The 1% street tax generated $ 22.66 million in 2020, up 4.02% from 2019 and 6.08% from the budget estimate. The 2020 total was $ 1.298 million more than what city officials had planned to spend on the street tax program.
PREVIOUS ANNUAL COLLECTION INFORMATION
Fort Smith 1% street sales tax collection
2020: $ 22.66 million
2019: $ 21.73 million
2018: $ 21,503 million
2017: $ 21,204 million
2016: $ 21,156 million
Fort Smith part of the 1% county-wide sales tax
2020: $ 18,246 million
2019: $ 17.265 million
2018: $ 17.043 million
2017: $ 16.691 million
2016: $ 16.58 million