Wednesday, Oct. 1, 2003 | 11:09 a.m.
CARSON CITY -- In the biggest percentage increase since June 2000, Nevada businesses posted $2.950 billion in taxable sales in July, a 9.3 percent increase.
The state Department of Taxation reported today that collections from the tax yielded $213.4 million, an increase of 10.2 percent. But the department said part of the high receipts was due to a reduction in the amount of administrative fees businesses are allowed to retain for their work in collecting the tax.
Gov. Kenny Guinn again, as he has in past months issued a note of caution.
"While this single month of the new fiscal year exceeds normal growth expectations, it is too early to predict what the remainder of the fiscal year will bring.
"Indications are that Nevada is slowly recuperating from the impacts caused by the war in Iraq and the slow economy of the last few years," the governor said.
This was the fourth consecutive month in which the percentage of taxable sales increased compared to the same month of a year ago. In April it was up 5.3 percent, 7.8 percent in May and 8.3 percent in June.
The 9.3 percent is the highest since 13.5 percent in June 2000.
The department reported taxable sales in Clark County jumped 10.6 percent to $2.1 billion, also the biggest percentage gain since June 2000 when a 14.4 percent jump was recorded.
Taxable sales are one indicator of the health of the Nevada economy. There were strong showings in most of the business sectors that contribute to the taxable sales.
The cigarette tax yielded $7.5 million, a gain of 109.4 percent. That increase is due to a 45 cent a pack increase in the cigarette tax that took effect on July 23 or the final week of the month.
The department said business statewide in car sales rose 14.5 percent; wholesale trade in durable goods jumped 23.3 percent; building materials rose 9.7 percent; clothing store sales increased 10.3 percent; home furniture was up 11.1 percent and eating and drinking places rose 9.4 percent.
The department said Clark County bars and restaurants did $460.7 million in taxable sales, up 12 percent; wholesale trade in durable goods rose 22.1 percent to $120.6 million; building material sales jumped 13 percent to $133 million and general merchandise stores recorded $162.3 million in taxable sales, up 8.3 percent.
Food stores in Clark County registered $77.3 million, up 3.6 percent; car dealers reported $343.7 million, an increase of 13.6 percent; clothing stores had $97.5 million in sales, up 11.1 percent and home furniture business increased 13.8 percent to $121.4 million.
It was the fourth straight month of double digit increases in car sales and the third consecutive month for building supplies in Clark County.
The department said taxable sales in Washoe County rose to $484.2 million, up 7.4 percent; Douglas County reported $61.6 million, up 9.9 percent; Elko County merchants registered $63.4 million in taxable sales up 6.6 percent and Carson City posted $78.3 million in taxable sales, an increase of 2.1 percent.
While the state collected $213.4 million in sales taxes, most of that is sent to local school districts and local governments. The yield for the state for July was $59.8 million, up 9.8 percent.
Liquor tax receipts rose 44.7 percent to $2.4 million for the month. That was due to a 75 percent increase in the tax on liquor that started July 23.
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