Nevada sales hit $25.36 billion in fiscal 1998, up only 3.4 percent

Brendan Riley

Wednesday, Aug. 26, 1998 | 9:16 a.m.

CARSON CITY - Nevada merchants sold $25.36 billion in goods during the fiscal year that ended June 30 - a gain of just 3.4 percent that's far short of projected 8.5 percent year-to-year growth.

The figures, reported Tuesday by the state Taxation Department, ensure that the state will have a tax revenue shortfall estimated by Taxation Director Mike Pitlock at $20 million or more.

But Pitlock also has said an immediate budget crisis is unlikely because spending is being kept in check. However, the 1999 Legislature will have to deal with a smaller surplus in planning the next Nevada budget.

The fiscal year ended with June sales totaling $2.29 billion, up 4.5 percent over the same period a year earlier.

A breakdown of the June gain showed 6.3 percent growth in the populous Las Vegas area and 8.7 percent growth in the Reno area.

Nine of the state's 15 outlying counties reported sales slumps, led by Eureka County which was down 53 percent.

The state's cut of sales tax collections for the fiscal year totals $512.5 million. That included $46.9 million in June. About 37 percent of all state government revenues come from sales taxes.

During June, bar and restaurant sales, indicators of tourist traffic, were up 2.7 percent. General merchandise was up 11.3 percent, clothing stores were up 9.9 percent, and auto sales were up 23.1 percent.

But general building construction was down 14.4 percent, and sales related to mining were down 46.7 percent.

Merchants in Clark County, taking in the Las Vegas area, sold goods worth $1.57 billion in June. In Washoe County, encompassing the Reno-Sparks area, June sales totaled $405.3 million.

Besides Eureka, other counties with June slumps included: Elko, down 13 percent; Esmeralda, down 35.6 percent; Humboldt, down 17.6 percent; Lander, down 18 percent; Lincoln, down 18.2 percent; Nye, down 16.9 percent; Storey, down 33.9 percent; and White Pine, down 16 percent.

Counties with month-to-month gains, besides Washoe and Clark, included: Churchill, up 5.2 percent; Carson City, up 12.3 percent; Douglas, up 2.9 percent; Lyon, up 20.5 percent; Mineral, up 5.4 percent; and Pershing, up 1.5 percent.

Gambling tax projections also are below the mark, with revenue growth of 3.2 percent in fiscal 1998 instead of the projected 6.8 percent. Sales and gambling taxes combined make up 72.5 percent of the state general fund budget.

The projected growth for the taxes were made last year by the Economic Forum, an independent panel with financial and accounting expertise that sets estimates used by the governor and Legislature in passing a balanced budget.