Sales tax revenue rebounded for the city of Fort Smith in August with the city seeing increases of around 7% from the same time in 2024. The August gain also was above the budget estimate.
The city’s share of the Sebastian County sales tax was $2.204 million in August, up 7.04% compared to $2.059 million in August 2024, according to the sales tax report.
The August county tax share, which measures July transactions, was up 1.53% compared to projected August 2025 revenue listed in the city’s budget.
The year-to-date countywide tax total for Fort Smith is $16.287 million, down 1.17% from the $16.48 million generated through August 2024. That tax brought in $24.49 million in 2024, 0.95% lower than 2023.
The city’s share of the countywide tax is important because the revenue provides money for the city’s general fund budget, with much of that budget paying for police, fire, and other essential city services.
“We are glad to see the rebound in sales tax numbers compared to previous months. Construction activity and retail sales continue to be our strong points, and this summer saw a lot of that activity,” Acting City Administrator Jeff Dingman said. “We are cautiously optimistic that the trend will continue through the rest of the year and we will end the year very close to our projected revenues from sales taxes.”
The 1% city sales tax generated $2.616 million in the August report, up 6.41% compared with the $2.459 million in the August 2024 report. That tax is broken down to $1.635 million for streets, bridges and drainage and $981,027 for consent decree work.
The city’s budget for those revenues was $1.612 million for streets, bridges and drainage and $967,381 for consent decree, resulting in the revenue 1.43% above the budget projection.
For the first eight reporting months of 2025, the tax generated $19.614 million, down 0.99% compared with the $19.81 million in the same period of 2024.
“If the remaining 2025 receipts stay aligned with the City’s forecast, the City will end the year with receipts approximately 2% below the annual forecast,” Andrew Richards, chief financial officer for the city, noted in the report.
Fort Smith voters in May approved a sales tax reallocation plan to provide $360 million over 30 years to fund federally-mandated sewer system work. The vote reallocated a 0.75% sales tax first approved by voters in 2022 to pay for consent decree work and to pay bonds, with 0.125% used for the Fort Smith Police Department. It also renewed the 1% street tax but reallocated 0.625% for streets, bridges and drainage work, with the remainder of the tax to fund consent decree work and bonds. And it approved the authorization to use the tax revenue to issue bonds to pay for the work.
PREVIOUS ANNUAL COLLECTION INFO
Fort Smith 1% sales tax collection for streets
2024: $29.51 million
2023: $29.92 million
2022: $28.65 million
2021: $26.66 million
2020: $22.66 million
2019: $21.73 million
2018: $21.5 million
Fort Smith portion of 1% Sebastian County sales tax
2024: $24.49 million
2023: $24.64 million
2022: $23.55 million
2021: $21.49 million
2020: $18.24 million
2019: $17.26 million
2018: $17.04 million
2017: $16.69 million