Taxable sales in Clark County plummet 26 percent

By Cy Ryan

Wednesday, Oct. 28, 2009 | 11:19 a.m.

CARSON CITY – Taxable sales in Clark County slumped 26.1 percent in August, the biggest decline recorded in the current economic downturn.

The state Taxation Department said this was the 12th straight month of lower taxable revenues in the county.

Statewide, the sales fell by 24.1 percent, the highest in the last 12 months.

But the department said about $263 million in taxable sales in August 2008 was reported under the amnesty program. “Without the reported amnesty, statewide taxable sales would have posted an 18.6 percent decrease for August 2009,” the department said.

Gov. Jim Gibbons said the figures show people and businesses have continued to feel the effects of the recession. “The administration continues to monitor and plan for the effects of the impaired housing market, sluggish consumer spending and the overall condition of the economy,” the governor said.

The department said collections from the sales and use tax are 1.1 percent, or $9.3 million, below the forecast made in May by the Economic Forum for the first two months of fiscal 2010.

This will be one item considered when the governor decides whether to convene a special session of the Legislature. He has said he wants to see the figures in October and November before making a decision.

Hardest hit in Clark County were the sales of building materials and furniture, which reflects the downturn in construction activity.

The department said the sale of building materials fell 34.8 percent, the biggest drop in the last 10 months. Furniture sales in Clark County were down 41.7 percent.

The restaurant and bar businesses reported a 9.5 percent decline in taxable sales in August. Car sales dropped 17.7 percent, the biggest decline since July 2008, when business fell 9.6 percent.

Sale of clothing fell by 15.3 percent and general merchandise business was down to 9.8 percent in Clark County.

The department said Washoe County sales fell by 18.1 percent and Carson City was down 15.4 percent.

The department said the largest increases in taxable sales statewide were in heavy and civil engineering construction, up 46.6 percent. And taxable sales rose by 63.9 percent in the performing arts, spectator sports and related industries category.

Fifteen of the state's 17 counties recorded a decrease in taxable sales. Businesses in Lincoln County reported a 1.5 percent increase compared to August 2008. Mineral County reported a gain of 17.6 percent.

The biggest declines were recorded in Storey County at 57.9 percent and Esmeralda County at 52.9 percent.