Hot Springs Sales Tax Dips After January Winter Storm

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The city of Hot Springs, Arkansas reported that its 1% general fund sales tax collections missed the revenue forecast by almost 7% in January, the widest miss since February 2019 when collections strayed more than 10% from projections. Officials pointed to a winter storm that hit the area in the last week of January as the likely cause for the unexpected drop in sales tax revenue.

Why it matters

Sales tax revenue is a critical funding source for the city of Hot Springs, so significant misses in collections can impact the city's budget and ability to fund public services. The January dip highlights the vulnerability of local economies to the effects of severe weather events, which can disrupt consumer spending and business operations.

The details

According to the report, the 1% general fund sales tax collections in Hot Springs fell short of the revenue forecast by nearly 7% in January. This was the widest miss since February 2019, when collections strayed more than 10% from projections. City officials attributed the unexpected drop in sales tax revenue to a winter storm that hit the area in the last week of January, which likely disrupted consumer spending and business operations.

• The winter storm that impacted Hot Springs occurred in the last week of January 2026.
• The January 2026 sales tax collections missed the revenue forecast by almost 7%, the widest miss since February 2019.