Editor’s note: This story is a component of The Compass Report. The quarterly Compass Report is managed by The City Wire and presented by Fort Smith-based Benefit Bank. Other supporting sponsors of The Compass Report are Cox Communications and the Fort Smith Regional Chamber of Commerce.
Increases were posted for sales tax collections in Fort Smith and the city’s portion of the countywide sales tax, but the amounts collected year-to-date remain below budget estimates.
Each of the city’s 1% sales taxes (1% for streets and 1% for water and sewer projects) collected $1.605 million in the October report, up 0.69% from the same period in 2012.
The collections in the October report were 2.36% below budget estimates. (Because the state of Arkansas has a two-month delay in reporting collections back to the cities, the city of Fort Smith — for budgeting purposes — has historically reflected the collections on a one-month delay. Which is to say, the tax collections remitted to cities in November are from taxes collected in September and transferred by merchants to the state in October.)
For the first 10 reporting months of 2013, each of the 1% sales taxes generated $16.363 million, down 1.02% compared to $16.532 million in the same period of 2012.
The year-to-date collections are also 3.92% below budget estimates.
Collections in 2012 of the two 1% taxes totaled $39.21 million, slightly ahead of the $38.683 million during 2011. The 2011 collections were 3.9% above 2010 collections.
Fort Smith’s share of the county 1% sales tax in the October report is $1.248 million, up 0.39% compared to October 2012. The collection was down 2.12% compared to the revenue estimate.
For the first 10 months of 2013, the countywide tax has generated $12.927 million for Fort Smith, up 0.34% compared to 2012 and down 2.12% compared to budget forecasts. The dip in collections compared to budget estimates has resulted in city officials seeking 4% budget cuts from all departments.
The countywide tax generated $15.279 million in 2012, just ahead of the $15.15 million in 2011, but lower than the peak collection of $16.61 million in 2008.
The countywide tax collection is critical because the revenue is a little more than 40% of the city’s general budget of roughly $42 million. A majority of the general fund budget general supports fire, police and other critical city functions.
AREA COLLECTIONS
Sales tax collections in Crawford County for the first nine months of 2013 total $4.718 million, slightly ahead of the $4.695 million in the same period of 2012.
Collections in Van Buren for the first nine months of 2013 are $$5.372 million, well ahead of the $2.645 million in the same period of 2012. The city approved a 1% sales increase in 2012 for infrastructure improvements and emergency services upgrades.
Collections in the Sebastian County city of Greenwood totaled $1.494 million, better than the $1.468 million during the same period of 2012.
PREVIOUS ANNUAL COLLECTION INFO (Fort Smith)
2% sales tax collection (1% for streets; 1% for water/sewer bonds)
2012: $39.210 million
2011: $38.683 million
2010: $37.229 million
2009: $37.554 million
2008: $41.226 million
2007: $37.858 million
2006: $36.840 million
Fort Smith portion of 1% countywide sales tax
2012: $15.279 million
2011: $15.15 million
2010: $14.89 million
2009: $15.04 million
2008: $16.61 million
2007: $15.15 million
2006: $14.71 million