Taxable sales continue slump, construction up in Clark County

By Cy Ryan

Monday, Nov. 24, 2008 | 3:10 p.m.

CARSON CITY – Taxable sales in Clark County fell 6.3 percent to $2.8 billion in September, the fourth decline in the last six months, the state Department of Taxation reported.

Statewide taxable sales fell 5.2 percent to $3.9 billion. The number was bolstered by the state’s tax amnesty program, which brought in $39 million. Without the amnesty dollars, the decline would have been 6.1 percent.

The sales and use tax produced $283.7 million in receipts, down 8.9 percent compared to the same month of 2007. It represents a 4.6 percent decrease for the first three months of this fiscal year, illustrating the financial problems facing the state.

In Clark County, construction activity ended a 23-month decline, but car sales and the bar and restaurant businesses continued their slumps.

The department reported that the sale of building material and garden equipment in Clark County rose 5 percent after nearly two years of a decline every month. But auto sales dropped 26.6 percent in September in Clark County, the 23rd consecutive month of decline.

Sales in bars and restaurants in Clark County fell 21.3 percent, the largest decline in at least the last two years. It was the 11th consecutive month that this segment of the economy has suffered.

General merchandise sales that have shown a steady increase posted a 26.2 percent gain, the largest increase in at least the last two years. But sale of clothing, which registered gains in every month for the past two years, fell 4.3 percent in Clark County.

The furniture business in Clark County reported its 27th straight month of declining business – off 29.6 percent.

Taxable sales were off in Washoe County for the 18th straight month, falling 9.2 percent. Carson City posted its tenth straight month of declining sales, down 10.3 percent.

The department reported the largest increases in statewide taxable sales were in general merchandise stores, up 27.8 percent; utilities, of 66.3 percent; amusement, gambling and recreation industries up 27.2 percent and transportation up 133.8 percent.

Statewide, business in bars and restaurants fell 19.6 percent; home furniture was off 31.2 percent; construction rose 1.8 percent and car sales fell 24.1 percent.

Tax collections from cigarettes have fallen 1.6 percent this fiscal year so far from the predictions of the Economic Forum; liquor receipts are off 1.5 percent; collections for live entertainment have inched up 0.7 percent; the three month collection from the insurance premium tax has dropped 6.5 percent and the real property tax is down 13.7 percent.

The department said the modified business tax for general business for the first quarter of this fiscal year produced $74.1 million, up 14.7 percent from the same period of a year ago. Fees from newly registered businesses or annual renewal jumped 19.2 percent for the first quarter of this fiscal year.

Cy Ryan may be reached at (775) 687 5032 or [email protected].