Taxable sales up in October

Wednesday, Dec. 19, 2001 | 11:01 a.m.

CARSON CITY -- Restaurants and bars in Clark County took a big hit in October but car dealers were smiling.

In general, the state's economy did surprisingly well in the first full month after the Sept. 11 terrorist attack.

The state Taxation Department reported Tuesday that taxable sales reached $2.6 billion, up 2.9 percent for the state. And Clark County merchants recorded a 2.3 percent increase.

That's a big rebound from September, when taxable sales fell by 9.1 percent statewide and by 10.3 percent in Clark County.

Gov. Kenny Guinn said the performance was bolstered by a statewide 29.3 percent increase in auto sales and a 7.2 percent rise in the sale of building materials and hardware.

The state Gaming Control Board reported earlier this month that casino winnings fell by 5.1 percent in October compared to the same month of a year ago.

Taxation Director David Pursell said business in eating and drinking places dropped 7.3 percent statewide and fell by 9.3 percent in the Las Vegas area. Those businesses usually reflect what happens in gaming.

For this fiscal year, the combined tax collections from sales and gaming are $34 million behind the estimates of the Economic Forum, upon which the state budget is based. The forum predicted last May that sales tax receipts this year would come in at a 6.1 percent higher clip. So far the increase has been 3.8 percent. Gaming taxes collected this fiscal year are down 2.1 percent as against the prediction of an increase of more than 3 percent.

The governor said the state can handle the revenue shortfall without having to dip into the more than $125 million rainy day fund that would require the Legislature to be called into session.

Many of the counties enjoyed a robust October in general sales.

Washoe County reported taxable sales hit $440.7 million, up 6.2 percent. Carson City recorded a 16.1 percent gain in taxable sales to $74.9 million and White Pine County posted a 17.9 percent increase to $6.2 million. But taxable sales were down 11 percent in Elko County, 2.9 percent in Nye County and were even with last year in Douglas County.

Statewide, the department said general merchandise stores recorded a 1.4 percent gain while sales in food stores dropped 8 percent. Also, apparel and accessory sales dropped 14.1 percent and miscellaneous retail sales were off 6.4 percent.

Taxable sales in Clark County rose to $1.8 billion. The department said merchants in Clark County recorded $120.9 million in the sales of building materials and hardware. up 6.1 percent. Auto sales were $306.7 million, up 32.9 percent.