Friday, Dec. 27, 2002 | 11:40 a.m.
CARSON CITY -- For the fourth consecutive month, taxable sales by Nevada merchants rose in October, an increase of 1.8 percent from the same month of 2001 to $2.7 billion.
But Gov. Kenny Guinn said today the state is falling further behind in collections from the sales tax. The state is now $11.9 million behind the projections of the Economic Forum on which the state's budget is built.
"Without a dramatic turnaround, our deficit picture will continue to grow," Guinn said. "In order for Nevada to meet the Economic Forum's original projection, sales tax collections will need to grow 12.8 percent per month through the end of the fiscal year, which under any reasonable scenario will not occur."
The state Taxation Department reported today that so far this fiscal year, the sales tax receipts are up 4.5 percent over the period last fiscal year.
In October taxable sales grew in Clark County by 3 percent to $1.9 billion. But they fell in Washoe County by 0.7 percent to $441.9 million.
Statewide the department said business in eating and drinking establishments rose by 6 percent. But the sale of cars fell by 8.8 percent. Auto sales are one of the main contributors to the sales tax.
In October last year the car dealers were offering huge incentives to lure prospective buyers to purchase autos.
Apparel stores statewide posted an 18.3 percent gain in sales in October; miscellaneous retail stores were up 5.4 percent and food store sales inched up 0.3 percent.
Bars and restaurants in Clark County reported a 7.2 percent gain in sales, totaling $412.5 million. But auto dealers had taxable sales of $277.2 million, down 8.8 percent from a year ago in Southern Nevada.
Sales in Clark County apparel stores jumped 20.1 percent to $93.8 million; building materials rose to $123.3 million, up 1.3 percent; general merchandise stores in Clark County registered a 9.6 percent gain to $159.4 million; food store business inched up to $72.3 million, an increase of 0.5 percent; but the home furniture business was off 1.4 percent to $103.7 million.
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