Clark County sales fall 16.5 percent in September

By Cy Ryan

Published Tuesday, Dec. 1, 2009 | 8:53 a.m.

Updated Tuesday, Dec. 1, 2009 | 10 a.m.

CARSON CITY – Taxable sales in Clark County dropped 16.5 percent in September, the 13th straight month of a decline.

The state Tax Department reported today that taxable sales, one indicator of the economy, dropped from $2.8 billion in September 2008 to $2.3 billion this year in Clark County, while bar and restaurant businesses showed growth.

Statewide, taxable sales fell 17.7 percent. An amnesty program in September boosted collections -- the department said without it taxable sales would have fallen 16.9 percent Sixteen of the state's 17 counties recorded a decrease.

Collection of the sales and use tax for the first three months of this fiscal year is down 14.9 percent.

Dan Burns, communications director for Gov. Jim Gibbons, said this is one set of numbers the administration will use in deciding whether to call a special session of the Legislature.

There are other revenue reports due for the first quarter of this fiscal year. Burns said the governor also will look at government spending, which has seen a series of cuts as tax revenue has fallen.

Gibbons said he would continue to encourage business to expand and out-of-state companies to come to Nevada.

“My administration will also maintain our efforts to keep government spending in check and we will monitor and plan for the effects of the overall condition of the economy,” Gibbons said.

Burns said a decision on a special legislative session may be made this month or in January.

The bright spot in Clark County was the bar and restaurant business, which recorded an 8.2 percent increase in taxable sales, ending a 21-month decline. Building materials dropped 33.7 percent, the 12th consecutive month of lower business.

Furniture sales fell by 28.1 percent in September. There has not been an increase in this category in Clark County since May 2006. Sale of clothing was off 8.9 percent and car sales fell 16.3 percent, the 22nd consecutive month of a decline.

Sales in general merchandise stores were off 5.1 percent in Clark County.

The agency said, “Compared to the May 2009 Economic Forum projections, the general fund portion of the (statewide) sales and use taxes is 1.57 percent or $12.5 million below their forecast for the first three months of fiscal year 2010.”

The department reported statewide cigarette tax collections fell one percent compared to September 2008; the liquor taxes were off 0.07 percent but collections from the live entertainment tax inched up 0.61 percent.

Business license fees for the first quarter of the year fell 28 percent to $3.7 million; collections from the insurance premium tax dropped 0.89 percent in the first quarter of the fiscal year and the governmental services fee collections were off 1.2 percent.

The agency said Mineral County was the only county that showed an increase in taxable sales in September, up 31.6 percent. Sales in Washoe County slumped 20.6 percent and Carson City was off 23.8 percent.

The largest decline in taxable sales occurred in Churchill County, falling 56.3 percent compared to a year ago in September.