Fort Smith sales tax revenue continues the strong trend seen over the past year, as June sales tax revenue was higher than the same period last year and higher than what had been budgeted for 2021.

“Fort Smith is financially secure and the higher sales tax collections, which have been occurring for over a year, are not due to a one-time problem and may be partially annualized in future budgets. The numbers tell me that Fort Smith and the state of Arkansas are stronger financially and economically than we all thought before and after COVID, ”city administrator Carl Geffken said in June.

The city’s share of the Sebastian County sales tax brought in $ 1.73 million in June, 12.33% more than $ 1.54 million in June 2020, according to the sales tax report of June of the city. The figures in the June report reflect the transactions for May. In the 2021 budget, the city budgeted $ 1.54 million, the same amount as the sales tax generated in June 2020, so revenue is up 12.33% from budget.

In the first half of the year, the city collected $ 10.206 million from its share of the county’s sales tax, a 16.41% increase from the $ 8.767 million collected in the first six months of 2020. The city’s share the city of county-wide tax is important because the revenue provides money for the city’s general fund budget, with much of that budget going to fund police, fire and other services city ​​essentials.

“We are happy (with the numbers in this report) because it shows that our economy is strong,” said City Manager Neal Martin. “People work and can spend those hard-earned dollars to improve their lives. We’ve been on a pretty good path over the past 12 months and the strength of our economy has been evident in those 12 months. 2021 has been one of the most important years in terms of job announcements, construction projects and income and I think that shows Fort Smith’s economy is booming. Business owners see it and want to invest here and create jobs, which directly affects our citizens. “

Fort Smith’s 1% street tax – used for maintenance and new construction on streets, bridges and drainage – generated $ 2.18 million in June, a 14.02% increase from to $ 1.91 million in June 2020. Again, the budget estimate was what the city did in June. last year, therefore, revenues were 14.02% higher than budget forecasts. So far for the year, the city has raised $ 12.844 million, up 1,772% from the $ 10.910 million raised in the first two quarters of 2020.

Martin said double-digit growth each month cannot continue indefinitely. But while revenues may decline at some point, Fort Smith has stood up in light of everything that has struck in recent years, including the COVID-19 pandemic.

“I am happy to see these numbers, and we will work to continue to progress,” he said.

Director Lavon Morton agreed that the city’s positive tax revenues are expected to continue until 2021.

“Sales tax collections continue to be strong, and I expect this to continue at least until the end of the year,” Morton 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 ​​budget. 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