Nevada taxable sales up 13.2 percent for September

Wednesday, Nov. 26, 2003 | 11:14 a.m.

CARSON CITY -- Propelled by sales of building materials and cars and the brisk business in bars and restaurants, Clark County merchants posted a 13.2 percent increase in taxable sales in September, the biggest percentage gain in more than four years.

The state Taxation Department reported Tuesday that taxable sales reached $2.2 billion. It was the third straight month of double-digit increases for Clark County and the best since a 14.7 percent gain recorded in June 1999.

It was the 15th straight month of increased taxable sales for Southern Nevada.

Statewide, the department said taxable sales shot up 12 percent to $3 billion, also the highest percentage gain since the 13.5 percent in June 1999. And it was the 15th straight month of increased business statewide.

Gov. Kenny Guinn said the figures "indicate our state is recuperating from a previously sluggish economy. I am pleased with the progress we have made and I am hopeful this recovery will continue."

The state collected $63 million from its 2-cent share of the sales tax, a 13.6 percent increase over the same period of a year ago. Part of the increase was due to a new law that reduced the amount of the fee that merchants were permitted to keep for collecting the tax.

For the first three months of this year, the state has received $167.4 million from the sales tax, a 10.6 percent jump. The state's budget is built on an expected increase of 5.6 percent 5.6 percent this year.

Despite the strong performance, Guinn added a note of caution, saying "there is some uncertainty regarding upcoming collections" from the new taxes imposed by the 2003 Legislature.

He added however, "the solid performance turned in of late on the sales tax side provides us with a but of a 'cushion' in the event that new revenue streams are not as productive as expected."

The taxation department said sales of building materials jumped 27.3 percent in September to $132.3 million in Clark County. It was the fifth consecutive month of double-digit increases for this sector of the economy.

Car sales rose 18.8 percent to $324.3 million, the fifth time in the last six months there has been a double-digit increase in the auto business in Southern Nevada.

Home furniture business jumped 20.7 percent to $142.3 million, the fourth straight month of double-digit increases. Clothing stores posted a 14.7 percent gain to $114.2 million, the fifth consecutive month of double-digit gains.

Restaurant and bars in Southern Nevada posted $444.2 million, a 12.2 percent increase. It was the biggest percentage gain since the 13.7 percent reported in January.

Sale of wholesale durable goods rose 26.8 percent to $127.6 million. But general merchandise stores in Clark County realized only a 1.6 percent increase in taxable sales to $164 million.

The department said the breakdown statewide shows wholesale durable goods up 29.2 percent; building materials jumped by 23.7 percent; auto sales rose 16.8 percent; apparel stores gained 13.4 percent; home furniture rose 22.1 percent, general merchandise stores increased by 2.3 percent and eating and drinking places were up 9.8 percent.

Washoe County merchants reported $505.3 million in taxable sales, up 7.5 percent and the 12th straight month of increases. Douglas County had $65.6 million in taxable sales up 12.7 percent; Elko County rose 13.7 percent to $67.4 million and Carson City increased to $76.7 million, up 7.4 percent compared to the same month of a year ago.

State collections on the cigarette tax rose to $8.8 million, a gain of 146.3 percent and the liquor tax yielded $2.9 million, up 89.2 percent. Chuck Chinnock, director of the taxation department, said this was due to the increases in the tax rate approved by the Legislature.