Nevada taxable sales up 5.9% in January

Thursday, March 27, 2003 | 11:12 a.m.

CARSON CITY -- Taxable sales, an indicator of the Nevada economy, rose by 5.9 percent to $2.568 billion in January, the seventh straight monthly increase. But Gov. Kenny Guinn said today that the collections from these taxable sales are still lagging, causing the state continued budget problems.

"Much of the positive gain reported is simply attributable to comparison with weak post-Sept. 11, 2001 activity," Guinn said.

"The war with Iraq is expected to depress future results at a time when we need to grow by an unrealistic 17 percent in the final months of the current fiscal year to reach the budgeted target," said Guinn.

The state Taxation Department reported that for this fiscal year the sales tax receipts for state government have totaled $391.8 million. Guinn said this is $18 million below the amount predicted by the Economic Forum upon which the state budget is built.

And collections from the sales tax that go to local school districts have totaled $435.4 million this fiscal year, or $25 million below the forecasts. The state must make up the losses to the school districts.

Guinn has recommended a raise in taxes effective April 1 to make up for the shortfall in revenue. And the Legislature voted to take $125 million out of the "rainy day" fund to help carry the state through the next 90 days.

Clark County merchants reported $1.8 billion in taxable sales, up 8 percent from January 2002.

The taxation agency reported that bars and restaurants, particularly in Southern Nevada, did a brisk business in January. Eating and drinking places reported sales of $513.9 million, up 11.8 percent from a year ago. The agency said auto sales statewide rose 6.4 percent; clothing stores jumped 15.9 percent; sales in home furniture outlets rose by 17 percent; building materials jumped 6.8 percent and miscellaneous retail sales increased by 7.4 percent.

In Clark County the department said bar and restaurant sales rose 13.7 percent to $427.8 million; building material sales increased 4.7 percent to $114 million; general merchandise stores had a 9.5 percent increase in business to $143.5 million; auto sales were up 5.9 percent to $267.9 million; clothing stores' business increased 16.7 percent to $83.1 million and home furniture sales increased 19.3 percent to $123.6 million.