Taxable sales down in Nevada

Thursday, May 23, 2002 | 11:11 a.m.

CARSON CITY -- Taxable sales, one barometer of the state's business activity, fell in March by 2.9 percent, the third decrease in the past four months.

But there are positive signs the Nevada economy is recovering, says Dino DiCianno, interim director of the state Department of Taxation.

The department said Wednesday that taxable sales declined to $2.8 billion, about $75 million less than in March 2001.

DiCianno said that auto sales were strong late in 2001 and early this year with the dealer incentives. There were double digit increases in some months. But taxable sales from the auto business increased by only 1 percent in March as the incentives disappeared.

For the first time in recent months, DiCianno said, business in bars and restaurants has started to rebound. Statewide it rose 1.3 percent. Eating and drinking places produce some of the biggest sales tax revenues.

Taxable sales statewide fell in December by 4.5 percent and were down 0.1 percent in February.

For this fiscal year, the state collected $477.7 million from its share of the sales tax, up 2.4 percent. But the Economic Forum, upon which the state's budget is built, predicted a 6.1 percent increase in sales tax revenue this fiscal year.

Merchants in Clark County reported sales at $2 billion, off 1.6 percent from the same month of 2001. Taxable sales had increased slightly in Southern Nevada in January and February.

Sale of building materials statewide dropped 9.8 percent and miscellaneous retail was off 8.5 percent. DiCianno said construction "is down everywhere, especially in Las Vegas."

The department reported business in general merchandise stores rose 7.9 percent and sales in apparel stores inched up 2.3 percent. But taxable sales were off in home furniture stores by 1.5 percent; food stores by 0.2 percent and by 9.1 percent in sale of durable goods in wholesale trade.

In Southern Nevada, the department said business in bars and restaurants increased by 1.5 percent; general merchandise stores were up 8.6 percent; food stores rose 5.2 percent; auto sales increased 2.3 percent and clothing stores rose 2.8 percent.

But sale of durable goods in wholesale trade in Clark County fell 11.2 percent; building materials sale dropped 13.3 percent and home furniture was off 1.1 percent.

Taxable sales in Washoe County dropped 6.2 percent to $449.6 million; Carson City inched up 0.6 percent to $75.4 million; Elko County was off 5 percent to $58.3 million; Nye County fell 17.7 percent to $24.9 million and Douglas County declined 6.4 percent to $45.7 million.