Nevada taxable sales inch up to $2.4 billion in December

Thursday, Feb. 26, 1998 | 10:50 a.m.

CARSON CITY -- Construction activity and business in the bars and restaurants in Clark County took a nosedive in December, but there were moderate gains in retail stores.

The state Taxation Department reported Wednesday taxable sales statewide inched up to $2.4 billion, up only .9 percent compared to December 1996 -- the smallest gain in more than two years.

"The Las Vegas area drew down the whole state," said Taxation Director Michael Pitlock. "The holiday shopping was average, but construction and tourism in Las Vegas fell."

Clark County taxable sales reached $1.6 billion, up .9 percent, also the smallest gain in more than two years.

For the first six months of this fiscal year, the state's taxable sales are up 3.4 percent. The Economic Forum, upon which the state budget is based, predicted an 8.5 percent increase in sales tax revenues this fiscal year.

Pitlock said the state will probably collect about half of what was predicted for the 1998 fiscal year in sales tax. However, he said the receipts from the business tax, based on the number of employees hired, are up 6 percent.

Pitlock said more residents are employed "but they don't seem to be spending money."

The department said building construction-general contracting fell by 36.4 percent in Southern Nevada in December, but the sale of building materials and hardware rose by 6.4 percent.

Bar and restaurant business in the same month in Clark County dropped to $260.8 million, down 8.7 percent. But while the food and beverage industry experienced a decline, a prior report said the gross win in gaming in Clark County casinos rose by 8.3 percent.

While auto sales were off .7 percent, business in apparel and accessory stores jumped 24.3 percent in December. Also, home furniture sales rose 11.6 percent and general merchandise stores enjoyed a 7.1 percent increase.

Statewide, restaurant and bar activity dropped 6.2 percent; building construction was down 38.3 percent; auto sales fell by .5 percent; and wholesale trade dropped by 5.5 percent when compared to December 1996.