Nevada taxable sales see smallest gain in 11 months

Friday, April 20, 2001 | 11:30 a.m.

CARSON CITY -- The state budget will likely be a victim of consumers' tight wallets.

With spending slowing down as consumers eye the worsening economy, sales taxes are naturally dipping as well. Because the tax receipts are lower than anticipated by Gov. Kenny Guinn's budget staff, the budget will almost certainly have to be cut proportionate to the actual receipts.

Taxable sales rose by 2.6 percent in February, the smallest percentage gain in the last 11 months, according to the state Department of Taxation. The department reported Tuesday that taxable sales rose to $2.3 billion, up from 2.2 billion in February a year ago.

Department Director David Pursell said there was a softening in car sales and in the eating and drinking business in February. So far this fiscal year, the department reported, collections of state sales taxes are up 4.9 percent, compared to the 5.8 percent that had been anticipated.

The Economic Forum, a committee of business people that projects the state's anticipated revenues, meets May 1 to make new projections, on which the upcoming budget must be based.

Sales in Clark County rose by 2.5 percent in February compared to the same month of a year ago. This equaled the low 2.5 percent increase recorded in March 2000 and is the lowest percentage gain at least since January 1999.

Statewide taxable sales grew by 8.5 percent in general merchandise stores, 9.7 percent in home furniture, 1.6 percent in car sales and 0.4 in restaurant and bars. Business dropped in building materials and hardware stores by 1.1 percent.

Clark County merchants produced sales of $1.7 billion, up from $1.6 billion a year ago. Automobile sales in Southern Nevada inched up 1.8 percent, home furniture business jumped 12 percent, bars and restaurants reported a 1.1 percent increase, and general merchandise stores rose by 9.4 percent. But food stores in Clark County reported a 4.6 percent dip in sales.