FORT SMITH, Arkansas — The Fort Smith Board of Directors on Tuesday (Dec. 15) approved an alcohol tax increase and a higher fee on commercial solid waste haulers to generate an estimated $700,000 in new annual revenue for the city.
The board approved, six in favor and one opposed, an ordinance charging an annual franchise fee equivalent to 5% of gross revenues collected in the city for service provided by commercial solid waste haulers in the city. Director Neal Martin voted against the fee. The fee is expected to bring in between $100,000 and $200,000 a year, said Andy Richards, finance director for the city.
The board also approved an ordinance that will raise the supplemental alcohol tax on private clubs. Private clubs are already charged a 5% tax on alcohol sold in the club. This is on top of the 9.75% sales tax in the city. The ordinance will raise that to 10%. Because of an amendment, the tax is set to go into effect Dec. 1, 2021. The original ordinance to collect a supplemental alcohol tax was enacted in 1969. The increase in the alcohol sales tax is expected to raise about $500,000 annually, Richards said. The current 5% supplemental tax typically brings in $525,000 in annual revenue.