Fort Smith, AR Short-Term Rentals: Taxes & Fees (2026)

Fort Smith STR bookings under 30 days carry several stacked tax obligations. (1) Arkansas state sales tax under A.C.A. §26-52-301 applies to short-term lodging at 6.5%, administered by the Arkansas Department of Finance and Administration (DFA). (2) Local sales taxes layered on top include the Sebastian County sales tax and the City of Fort Smith local sales tax, also collected by DFA and remitted with the state return. (3) Fort Smith Advertising and Promotion tax: under A.C.A. §26-75-602 et seq., Arkansas cities are authorized to levy an A&P (hotel/motel/restaurant) tax to fund tourism promotion. Fort Smith levies a 3% A&P tax on the gross receipts of hotels, motels, and short-term lodging, administered by the Fort Smith Advertising and Promotion Commission. The A&P tax exempts stays of 30 or more consecutive days by the same guest (the long-stay exemption). Hosts must register with the A&P Commission, file monthly returns, and remit the 3% with the return. Airbnb has a voluntary collection agreement with the Arkansas DFA that automatically remits state and many local sales taxes for hosts, but the Fort Smith 3% A&P tax is generally the host's responsibility unless the platform has a specific agreement with the A&P Commission. A.C.A. §26-63-401 et seq. (the Tourism Development Act) provides the state-level tourism-tax framework that operates separately from the city A&P tax.