Taxable sales plunge 6 percent in June

By Cy Ryan (contact)

Thursday, Aug. 28, 2008 | 9:34 a.m.

CARSON CITY – Statewide taxable sales declined 6 percent in June, the biggest drop in at least the last 24 months.

The state Department of Taxation reports taxable sales in June dropped to $4.2 billion statewide, marking the 10th month of the past 12 months that there has been a decline.

Clark County merchants reported $3.1 billion in sales, off 3.3 percent, as the slump in the auto, furniture and building material industries continued.

Gov. Jim Gibbons noted the declines but said “the construction industry remains strong with major projects in Southern Nevada, while consumer spending faltered in the month of June.”

His view doesn’t jibe with the figures from the Tax Department. In Clark County, the sale of building materials fell by 14.3 percent in June, the 24th straight month of a decline. And sale of furniture was down 24.2 percent, also the 24th month of lowering business.

Business in the bars and restaurants in Clark County was off 11.5 percent in June, the seventh straight month of declining numbers. And auto sales fell for the 20th straight month, posting a decline of 12.9 percent in June in Clark County.

Clothing sales were strong in Southern Nevada, with a 5.1 percent gain in taxable sales. General merchandise stores were off 1 percent.

The governor said taxable sales in fiscal year 2008 that ended June 30 were down as expected. “Our state’s more recent economic trends are anticipated given the state of the national economy,” the governor said.

Taxable sales for Nevada for the fiscal year declined 2.5 percent to $49.4 billion. Clark County posed $36.2 billion in taxable sales, down 0.9 percent for the fiscal year.

Sale of building materials in Clark County for the past fiscal year fell 18.3 percent; the furniture business was off 14.2 percent; car sales dropped 10.6 percent; the bar and restaurant business declined 3.9 percent for the fiscal year. But apparel sales rose 7 percent and general merchandise stores recorded a 1.6 percent gain.

Taxable sales in some of Nevada’s rural counties recorded major drops in the past fiscal year. Storey County sales fell 40.8 percent; Eureka County was off 34.4 percent and Esmeralda fell 23.5 percent.

Washoe County was down 5.3 percent for the fiscal year in taxable sales and Carson City was off 7.3 percent.

Cy Ryan may be reached at (775) 687 5032 or cy@lasvegassun.com.