Las Vegas’ booming economy drives hikes in retail sales, tax collections

Wednesday, Aug. 25, 1999 | 10:41 a.m.

CARSON CITY -- A strong economy in the last six months pushed state sales tax collections $9.3 million higher than predicted for the 1999 fiscal year, the Nevada Taxation Department reported Tuesday.

Department Director David Pursell said the Economic Forum predicted sales tax revenue would grow 8.7 percent, but instead it expanded 10.46 percent. The state's 2 percent sales tax produced $566.1 million for the treasury, he said.

And revenue from Nevada's business tax was a "wash," he said. The forum had predicted it would yield $72.4 million and the actual receipts are $72.1 million.

The department said June, the final month of the fiscal year, was another strong month. Taxable sales jumped 13.5 percent to $2.6 billion.

"We're still seeing the effects of growth in Las Vegas," Pursell said. "It sounds redundant but eating and drinking continue strong," referring to the 15.8 percent increase in sales in bars and restaurants statewide.

Furniture sales are good, Pursell said, adding that may be because of purchases for new hotels in Southern Nevada.

"People seem to have discretionary income and they are spending it," he said.

Taxable sales in Clark County jumped 14.7 percent to $1.8 billion, the fifth month of the last six in which double-digit increases have been registered. Washoe County recorded a 10.5-percent jump in sales to $449.9 million, the second-highest percentage gain for this calendar year

Carson City posted $68.7 million in taxable sales, up 3.9 percent; Douglas County jumped to $46.3 million, up 14.2 percent; Elko County ballooned 17 percent to $79.4 million for June and Nye County rose 24.8 percent to $27 million.

Pursell said mining equipment purchases in Eureka County pushed taxable sales to $24.4 million, up 101.6 percent.

In the breakdown statewide, auto sales rose 27.3 percent; retail sales increased 16.1 percent; home furniture was up 26.7 percent and general merchandise stores jumped 16.2 percent. Clothing stores enjoyed a 7.9 percent increase in sales.

Auto dealers in Clark County posted a 26.7 percent increase in sales over June 1998; home furniture business rose by a whopping 31.2 percent and general merchandise stores were up 23.4 percent. But sales of building materials and hardware fell 1.4 percent.

With the opening of the new hotel-casinos, the eating and drinking businesses posted a 20.4 percent gain in sales and retail stores realized an 18.7 percent increase in Southern Nevada.