Nevada stores have big December, sales tax yield good for state

Brendan Riley

Thursday, Feb. 24, 2000 | 9:55 a.m.

CARSON CITY - Healthy December sales meant a nice Christmas bonus for the Nevada state government - keeping the state on track for a surplus expected to approach $150 million by June.

The state Taxation Department said Wednesday that sales in December totaled nearly $2.9 billion, bringing Nevada sales to $14.9 billion midway through the fiscal year.

The state's cut of sales taxes for the six-month period is about $300 million - up 7 percent over the same period a year earlier. Last spring, the state's Economic Forum had figured on 5.9 percent growth.

The forum, whose projections were relied upon by lawmakers in approving the current state budget, also figured that casino-related taxes would go up 4.4 percent. Instead, they're up nearly 16 percent so far this fiscal year.

The two levies are the mainstays of Nevada's budget, accounting for nearly three-quarters of the nearly $1.6 billion in revenues the state expects to collect by June 30.

The surplus began growing at the end of the last fiscal year, a month after the May 31 adjournment of the 1999 session.

By the time the books were closed last fiscal year, the state had $21.5 million more than expected.

So far this fiscal year, the growth rate in sales and gambling-related levies is on track to produce an additional $40 million in surplus money by June 30.

That $40 million would be in addition to the predicted surplus of $84.6 million assumed by the 1999 Legislature. All told, the state now figures to end up with a total surplus by the end of this fiscal year of nearly $150 million.

The actual amount will depend on continued strong growth in sales and gambling taxes for the next few months. It also assumes no big surprises in other tax categories or other aspects of state finances.

A breakdown of the $2.87 billion in December sales by Nevada merchants shows that the Las Vegas area accounted for just over $2 billion of the total, up 5.4 percent compared with the same month a year earlier. The Reno area had sales totaling $498.3 million, up 6.4 percent.

In counties outside the Reno and Las Vegas areas, Carson sales were up 3.3 percent; Douglas sales were up 16 percent, Elko sales were up 12.5 percent, Humboldt sales were down 9.8 percent; and White Pine sales were down 37.7 percent.

A breakdown of sales categories shows bar and restaurant trade, an indicator of tourist traffic, was up 6.3 percent statewide, general merchandise was up 13.2 percent, car sales were up 8.7 percent, and clothing stores were down 5.2 percent.