City Sales Tax Reauthorization & Reallocation
Fort Smith, AR—On February 21, 2025, the City of Fort Smith Board of Directors approved an ordinance related to the upcoming May 13 special election. Three measures regarding the City's existing 2% sales and use tax will be placed on the ballot.
1. Reauthorizing the 2022 3/4-cent Sales and Use Tax
- 1/8-cent would continue funding the Fort Smith Police Department.
- 5/8-cent would continue to be allocated to Consent Decree work, which includes federally mandated sewer system improvements.
- If approved, this reauthorization would be extended for the term required to pay off bonds, which is projected to be 34 years.
2. Reauthorizing and Reallocating the 1-cent Sales and Use Tax
- Currently, this tax funds streets, bridges, and associated drainage.
- Under the proposal, 3/8-cent would be reallocated to Consent Decree work and authorized to pay bonds, while the rest would remain for street and drainage projects.
- 5/8-cent would continue to be used for Streets, Bridges, and Associated Drainage
3. Bond issuance
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Issuing bonds on the combined amount from the reallocation (3/8-cent) and the reauthorization (5/8-cent)
These measures do not include new taxes or tax increases. The City is proposing these measures specifically to address sewer infrastructure needs as mandated by the federal Consent Decree.
Citizens are encouraged to participate in the special election scheduled for Tuesday, May 13, 2025, to decide on these important city issues. Early voting begins on Tuesday, May 6, 2025.
Learn more at https://fortsmithar.gov/salestaxvote.
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The City of Fort Smith is committed to providing high-quality, resident-focused services for the advancement of a thriving community. Our vision is to be a dynamic, business, family, and military-friendly destination that welcomes people from all over the world.
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