Fort Smith tax revenue edges up in September

Fort Smith’s share of the Sebastian County 1% sales tax reached $2.121 million in the September reporting period, a 2.9% increase over the same month in 2025. The city released the revenue data on Friday, October 30. These figures reflect sales transactions that occurred in August. While the countywide share grew, the city’s separate 1% sales tax revenue remained essentially flat, totaling $2.542 million for the month.

Both revenue streams currently exceed the city’s budget projections for the first nine months of the year. The countywide tax share stands at $19.041 million year-to-date, which is $692,728 or 3.8% higher than the 2025 total. The local sales tax has generated $22.716 million over the same period, a 2.5% increase from $22.25 million collected in the first nine months of 2025. Andrew Richards, the city’s chief financial officer, stated in the report that collections remain ahead of the 2026 budget assumptions. He noted that both county and local receipts are above prior-year levels for the month and the year-to-date total.

The revenue breakdown reveals mixed performance across different economic sectors. Retail trade accounts for 53.2% of total gross receipts and saw a 2.17% increase from 2025. Within this sector, sporting goods, hobby, and musical instrument retailers recorded a 12.9% jump in net sales receipts. Electronic shopping and mail-order houses also performed well, posting a 7.6% increase in net receipts. Conversely, wholesale trade declined by 3.8% and construction dropped by 14.4%, both falling below levels seen in the previous three years.

Certain service and utility sectors showed stronger growth than others. Accommodation and food services, which make up 12.1% of gross receipts, rose by 5.4% compared to 2025. Utilities, representing 6.9% of gross receipts, increased by 13.1%. Manufacturing, accounting for 5.15% of gross receipts, grew by 7.6%, though it remains 9.1% below 2024 levels. The countywide tax funds the city’s general fund, primarily supporting police, fire, and other essential services. The local 1% sales tax supports street, bridge, and drainage projects, as well as federally mandated sewer system work. In 2025, the local sales tax generated $29.513 million, a slight decrease from the $29.516 million collected in 2024.