Nevada taxable sales hit high mark for year

Friday, Aug. 29, 2003 | 10:57 a.m.

CARSON CITY -- Nevada merchants registered $3.1 billion in taxable sales in June, an increase of 8.3 percent and the biggest percentage increase in the first six months of the year.

The strong performance was fueled by sales of cars, up 15.1 percent, and building materials, up 14.1 percent.

It was the 12th straight month of rising business activity and it was the highest percentage gain during this period except for 8.4 percent in December.

Clark County businesses reported taxable sales of $2.2 billion, up 8 percent from June 2002, and it continued a 12-month trend of higher sales.

Gov. Kenny Guinn said recent gains in sales tax collections "give us some hope that conditions will improve in the months to come, especially against a backdrop of a rebounding national economy."

The state Department of Taxation reported Thursday that taxable sales for the fiscal year rose to $33.7 billion, an increase of 5.6 percent from the prior year. Collections from the sales tax totaled $2.4 billion for the fiscal year that closed June 30. That is a 5.9 percent gain over 2002.

"Despite a strong ending to fiscal year 2003, the bottom line is that sales tax collections finished the year more than $25 million short of original projections upon which the original budget was initially built," Guinn said.

The Economic Forum, which predicts tax revenue upon which the state budget is based, has forecast that sales tax receipts will rise 5 percent this fiscal year and 5.1 percent in fiscal 2005.

The 8.3 percent increase in June is compared to a soft June 2002, when taxable sales dropped by 1.7 percent.

The department said statewide wholesale trade in durable goods increased 16.6 percent; general merchandise stores were up 6.5 percent; food store sales inched up 0.1 percent; clothing stores gained 14.1 percent; home furniture sales increased 1.6 percent and bars and restaurant business increased 3.6 percent.

In Clark County, car sales totaled $323.7 million, up 16.6 percent, the third straight month of double digit increases. In the last fiscal year, auto sales in Southern Nevada posted double digit increases in six of the 12 months.

Sale of building materials in Clark County jumped 14.4 percent to $128.3 million in June, the second month of a double-digit increase. It was the largest percentage increase in a year. But it compares with a 7.8 percent decline in sales of building supplies in June 2002.

Wholesale trade in durable goods in Clark County reached $117.7 million, up 9.2 percent; general merchandise stores reported $179 million in taxable sales, up 6.2 percent; food stores reached $74.2 million an increase of 0.3 percent; apparel stores registered $112.4 million, a jump of 14.9 percent; restaurant and bars reported $447.5 million in business, an increase of 3.6 percent and the home furniture sales inched up 0.5 percent to $125.7 million.

The taxation department reported Washoe County posted $510.7 million in taxable sales, up 8.5 percent; Douglas County merchants recorded $61.9 million, an increase of 9 percent; Elko registered $55.5 million, up 6.8 million and Carson City had taxable sales of $76.1 million, down 0.2 percent.

Taxable sales have declined in Carson City since the departure of Wal-Mart to Douglas County and the closure of Kmart.