Booming Vegas economy propels jump in retail sales

SUN CAPITAL BUREAU

CARSON CITY -- Merchants in Clark County posted their strongest gains in nearly two years, ringing up a 12 percent increase in sales in November.

And the strength is across the board in such things as sales of cars, furniture, apparel and general merchandise.

The state Tax Commission Wednesday reported taxable sales in Nevada in November reached $2.1 billion, or an 8.1 percent jump, as the holiday shopping season opened.

"We're off to a great start," said Michael Pitlock, executive director of the commission, referring to the holiday sales season. "Clark County was particularly strong." It had sales of $1.5 billion.

After a sluggish first half of 1998, sales picked up in the tail end of the year. October also recorded an 8.1 percent gain over the same month in 1997. Since July, sales have posted a 7.5 percent increase compared to the 6.9 percent forecast by the Economic Forum, which makes the official predictions for the state.

If this continues, Gov. Kenny Guinn and the Legislature may have leeway to spend more money.

Based on the November showing, Pitlock said, "I'm confident the December numbers will hold up."

Statewide, retail stores posted a 14.1 percent gain; auto sales rose 9.9 percent; business in bars and restaurants jumped 6.5 percent; building materials were up 11.5 percent and general merchandise stores recorded an 8 percent increase.

In Clark County, auto sales jumped 18.4 percent; apparel stores posted 12.9 percent more business; home furniture was up 10.7 percent; building materials increased by 14.4 percent and eating and drinking places enjoyed 8.8 percent more business.

The overall 12 percent gain in Clark County is the highest since December 1996, when the increase was 18.5 percent.

Taxable sales in Washoe County increased 4.2 percent to $358.3 million; Carson City rose 5.4 percent to $56.1 million; Douglas County fell by 2 percent to $29.7 million and Elko County was off 17.2 percent to $52 million.

Pitlock said sales in rural counties often reflect the status of mining and the purchase of heavy equipment for that industry.

Sales tax, Pitlock said is "a fairly volatile tax sources. It goes through cycles ... peaks and valleys.

"It appeared to hit the valley about three months ago and since then it has started to turn around and is heading to a peak," he said. "The question is 'how far it will go?' "

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