November sales up 9 percent in Nevada

Wednesday, Jan. 22, 1997 | 11:59 a.m.

The gain compares with a 6.3 percent slump for Nevada casinos during the same month, based on a win of $571.2 million.

Taxes on sales and casino wins account for three-quarters of the revenue needed to run state government.

State Taxation Director Mike Pitlock said the November sales were good, especially when compared with the casino win. He added that if the pattern continues, it'll result in sales soon taking over from casino revenue as Nevada's principal tax source.

Numbers unveiled Jan. 16 at a legislative preview indicate that sales tax totals are on the verge of that historic shift.

Of the $2.8 billion in tax collections expected in the 1998-99 fiscal years, sales tax receipts are expected to comprise 37.1 percent or $1.13 billion, while casino taxes will bring in 35.1 percent, or $1.07 billion.

If the casino entertainment tax is added to gaming's total, revenue from casinos rises to 38 percent.

For the past eight years, sales tax revenues have accounted for up to 36 percent of state tax income. Gaming taxes, meanwhile, have fallen from 44.6 percent to 39.8 percent of overall revenues.

A breakdown of the November sales activity shows Las Vegas sales totaled $1.28 billion, up 10 percent; and sales in the Reno area totaled $337 million, up 6.4 percent.

Increases in November were reported in all outlying Nevada counties except: Eureka, down 7.6 percent; Lyon, down 4 percent; Pershing, down 57.5 percent; and Storey, down 42.6 percent.

The biggest monthly gain was 152.6 percent in Esmeralda County, followed by Lander County with a 39.3 percent jump.

Statewide, auto sales were up 6.3 percent, building material sales were up 9.4 percent; building construction was up 29.7 percent; and general merchandise sales were up 9.4 percent.

Statewide restaurant and bar sales, indicators of tourist traffic, were up 8.6 percent. Such sales were up 7 percent in the Reno area, and up 9.8 percent in Las Vegas.

The November sales statewide generated $134.7 million in sales taxes for state and local governments. The state's share of the sales tax was $39.1 million.