Booming Nevada economy lifts retail sales 14.2 percent

Friday, June 25, 2004 | 10:52 a.m.

CARSON CITY -- Nevada's economy continues to boom with merchants reporting a 14.2 percent gain in taxable sales in April.

This was the fourth consecutive month of a double-digit increases and the longest period of such gains in at least the last three years.

The growing economy was fueled by strong business in bars and restaurants and auto sales, two of the largest contributors to the sales tax. There were major increases in furniture and clothing sales.

Gov. Kenny Guinn said, "Ten straight months of sales tax growth demonstrates the strength of Nevada's business climate."

"Tourism is back on track and our state continues to attract new businesses at a record pace," he said.

Collections from the state's portion of the sales tax through April were $45 million ahead of projections for the fiscal year ending this month, he said.

"With general fund revenues now exceeding the Economic Forum's projections by about $100 million, we can begin to rebuild the rainy day fund" that was depleted during the economic downturn.

The state Department of Taxation reported today taxable sales reached $3.2 billion in April and for the first time since May 1988 all Nevada counties registered increased growth. The 14.2 percent comes on top of a 5.3 percent increase in April 2003.

Clark County sales rose 13.8 percent, also the fourth straight month of a double-digit increase. Sales rose to $2.3 billion.

The department said business statewide in eating and drinking places jumped 14 percent; auto sales rose 14.7 percent; general merchandise stores jumped 12.6 percent; home furniture business skyrocketed 22.4 percent and apparel stores reported an increase of 25.6 percent.

In Clark County, the department reported that taxable sale of building materials reached $136.8 million, up only 1.9 percent. This ends an 11-month string of double-digit increases in this category.

General merchandise stores in Clark County reported $182.6 million in taxable sales, up 11.5 percent and the fourth month of a double digit increase; auto dealers had $349.9 million in sales, a gain of 14.5 percent, the fifth straight month of double-digit increases and clothing stores posted $126.6 million, up 25.5 percent, the sixth straight month of double digit gains.

Home furniture stores in Clark County reported $138.7 million, up 21.7 percent and the third month of double digit increases and bar and restaurant businesses posted $528 million, up 14.6 percent, the fourth consecutive month of double digit increases.

The state collected $65.4 million as its share of the sales tax, a gain of 16.3 percent over April 2003. So far this fiscal year sales tax receipts are 13.2 percent higher than a year ago. The Legislature predicted they would increase by 5.9 percent this year.