Nevada taxable sales on increase

Friday, March 22, 2002 | 11:15 a.m.

SUN CAPITAL BUREAU

CARSON CITY -- Taxable sales, one indicator of the economy in Nevada, rebounded in January, rising to $2.3 billion, up .4 percent from a year ago.

The state Department of Taxation today said the slight increase was due in part to strong auto sales, which increased 15.8 percent from January 2001.

But restaurants and bars continue in a slump. Their business was down 3.1 percent.

The slight increase in January comes off a poor December, when taxable sales fell by 4.5 percent.

Sales in Clark County rose by 1.5 percent in January after falling 4.3 percent in December. Washoe County sales inched up .6 percent after a 3.1 percent decline in December.

The department said sale statewide of building materials rose 2.2 percent but miscellaneous retail business fell 7.8 percent. And sales in general merchandise stores statewide dipped 5.1 percent.

Taxable sales in Clark County rose to $1.739 billion for January. Car sales jumped 19.6 percent but eating and drinking businesses reported sales down by 4.6 percent. These are the two biggest producers of sales tax revenue.

Sales of building materials in Clark County inched up .2 percent but the home furniture business was off by 4.8 percent. The department said sales in general merchandise stores fell 7.1 percent in January; business was off by 16 percent in apparel stores and miscellaneous retail dived 7.7 percent.

Taxable sales fell in Douglas County by 3.1 percent; was off by 12.9 percent in Elko County and rose 7 percent in Carson City.

For this fiscal year, collections from the sales and use tax rose 1.9 percent. But the Economic Forum predicted the revenue from this tax would rise by 6.1 percent. So largely because of the Sept. 11 slowdown, there's a 4.2 percent gap in what the state expected and what's coming in.