Fort Smith, AR Hotels & Lodging: Transient Occupancy Tax (2026)

Lodging in Fort Smith is taxed at the state, county, and city levels. (1) Arkansas state sales tax of 6.5% (A.C.A. §26-52-301) applies to gross receipts from the rental of rooms in hotels, motels, tourist courts, and bed-and-breakfasts, administered by the Arkansas Department of Finance and Administration. (2) Sebastian County and City of Fort Smith local sales taxes layer on top and are also collected through the DFA return. (3) Fort Smith Advertising and Promotion (A&P) tax of 3% under the Arkansas Local Advertising and Promotion Tax Act (A.C.A. §26-75-602 et seq.). Arkansas cities of the first class may levy an A&P tax up to 3% on hotel/motel gross receipts and an additional tax on prepared-food sales for tourism promotion. Fort Smith levies the 3% lodging A&P tax, administered by the Fort Smith Advertising and Promotion Commission, which funds tourism, the Fort Smith Convention Center, and visitor promotion. A.C.A. §26-75-603 provides the long-stay exemption: gross receipts from rooms rented for 30 consecutive days or more to the same occupant are excluded. Operators must register with the A&P Commission, file monthly returns by the 20th of the following month, and remit the 3% with the return. A.C.A. §26-63-401 et seq. (the Tourism Development Act) establishes a separate 2% state tourism tax that already applies to lodging statewide and is collected with state sales tax.