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February 12, 2012

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Taxable sales drop 11 percent in Clark County

Auto dealers, furniture stories among businesses taking the biggest hit

By Cy Ryan (contact)

Friday, Jan. 30, 2009 | 10:03 a.m.

Sun coverage

CARSON CITY – Taxable sales in Clark County fell by 11.3 percent in November, the biggest drop in at least five years.

Taxable sales in the county fell to $2.5 billion, down from the $2.8 billion of a year ago, the third straight month of a decline.

Hardest hit were auto dealers who saw sales drop 35.4 percent and furniture stores, which saw a decline of 32.3 percent.

Statewide, the state Taxation Department reported that taxable sales dropped in 11 of the 17 counties.

Gov. Jim Gibbons said the report shows businesses are feeling the increasing effects of the recession. People “are spending less because they are worried about their families, their businesses and their livelihood,” he said.

Indicating that he expects a the Legislature to consider raising taxes, the governor used the sales tax numbers to argue against it.

“It is absolutely wrong to consider raising sales taxes at this time because it will increase the burden that all Nevadans have to cope with during this economic downturn. I will not ask the people of Nevada to pay more for basic necessities,” he said in a prepared statement.

The department reported the taxable sales, one indication of business activity, hit $3.3 billion in November, down 10.9 percent from the same month in 2007. So far this fiscal year, sales are off 5.4 percent.

In Novemeber, Clark County saw a 16.1 percent drop in the sales of building material and garden equipment; clothing stores suffered a 7.8 percent decline in sales; general merchandise businesses recorded 8.7 percent less activity and bars and restaurants were off 5.5 percent.

Auto dealers and furniture stores did not record an increase in sales tax during any of the first 11 months of 2008. The furniture business fell by double digits each month.

This report comes on the heels of jobless figures for December showing record 9.1 percent unemployment in Clark County with more than 92,000 people out of work.

Statewide, the department reported it collected $251.5 million from the sales tax for November, a 12.1 percent drop from the same month in 2007.

The major taxable sales declined in Washoe County by 14.3 percent; Douglas County fell by 21.7 percent; Eureka was down 21 percent. But Elko County posted a 9.5 percent gain and Humboldt County was up 15.5 percent.

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

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