Times Record
The Fort Smith Board of Directors unanimously voted Tuesday to repeal a city alcohol tax that would have bumped the city s tax from 5% to 10%.
The tax would have upped the total tax for beer to 19.75%, wine to 23.75% and liquor to 33.75% when purchased at a bar or restaurant in the city.
“I’m excited to repeal this and not hurt our bars and restaurants any further than they’ve already been hurt through the pandemic, At-Large Director Neal Martin said at Tuesday s board of directors meeting.
The alcohol tax was set to take effect in December.
At a Jan. 12 study session, the board of directors decided to vote on repealing the tax at Tuesday s meeting, according to a memo from Deputy City Administrator Jeff Dingman.
Times Record
The precursors for several prominent decisions in Fort Smith were set in 2020. The city will see them play out in 2021.
City officials in 2020 made decisions related to the extension or implementation of taxes and the federal Consent Decree. Outside of the city government, state and federal officials vouched for Fort Smith as the location of a fleet of fighter jets for a security initiative in Pacific Indochina.
The Times Record has compiled a list of five significant decisions to be made or further considered in 2021 for Fort Smith.
Fighter jet fleet
Ebbing Air Force Base at Fort Smith Regional Airport is in the running with four other locations throughout the country for the location of F-16 fighter jets for the Republic of Singapore and F-35 fighter jets a decision officials expect to be made early in 2021.
Times Record
Editor s note: This story has been updated to accurately state the kinds of businesses that were shut down for 74 days in Arkansas because of COVID-19.
Bar and restaurant owners in Fort Smith who say they re already suffering under the COVID-19 pandemic are worried about an incoming 5% alcohol tax hike from the city.
Slated to go into effect Dec. 1, 2021 with a study session to reconsider in October, the capped-out alcohol sales tax would push adult beverage taxes in Fort Smith up to 19.75% for beer, 23.75% for wine and 33.75% for liquor when purchased in a bar or restaurant. While it was presented to the Fort Smith Board of Directors at Dec. 15 meeting as a tax upon the gross proceeds or gross receipts derived by such private club, City Administrator Carl Geffken on Wednesday said the tax would apply to all bars and restaurants in Fort Smith that serve alcohol.
Times Record
Fort Smith is set for an alcohol tax increase, but not without further consideration before it goes into effect.
City Administrator Carl Geffken requested an October study session for a 5% increase to the city s supplemental alcohol tax before it is slated to go into effect in December 2021. This increase would bring the city s supplemental alcohol tax to the maximum fee of 10%, bringing liquor to a 33.75% tax, wine to a 23.75% tax and beer to a 19.75% tax when purchased in a restaurant or bar.
The tax would net the city a projected $500,000 annually, which was factored into the 2021 budget.
The Board of Directors voted 5-2 for the tax to go into effect in December 2021 at the request of 64.6 Downtown Director Talicia Richardson, who said it would negatively impact private clubs whose bottom lines are already strained by COVID-19 restrictions. At-Large Director Neal Martin and Ward 4 Director George Catsavis went against the motion, which was voted upon afte