Taxable sales up nearly 6 percent but still behind projections

Even though taxable sales in Nevada rose 5.9 percent in January, the numbers highlight bad news for both the state as a whole and Carson City.

Statewide, officials say tax collections are now $18 million less than the projections used to build this year's budget.

"Much of the positive gain reported is simply attributable to comparisons with weak, post-Sept. 11, 2001 activity," said Gov. Kenny Guinn.

Even as the state begins to recover, he pointed out that the war with Iraq is expected to drive sales tax numbers down again.

Guinn said to catch up with the numbers used to build this year's budget, sales tax revenues would have to increase 17 percent between now and the end of June.

For Carson City, the numbers show an increasing drain on taxable sales -- and corresponding gains in the capital's neighbors, Douglas and Lyon counties.

Overall, Carson City reported an increase in total sales of one-tenth of a percent $62.9 million this January compared with January 2002. While the capital's largest sales category -- auto dealers and gasoline -- rose 13.3 percent to $21.3 million, both wholesale and retail stores were down significantly.

General merchandise stores in Carson City dropped 26 percent to $8.2 million. Apparel and accessory stores went down 24.6 percent and wholesale trade in non-durable goods dropped 25 percent.

In Douglas County, that wholesale trade category increased 78.7 percent, general merchandise stores turned in a 256 percent increase and apparel stores a 193 percent increase.

Those increases reflect the growth of the Douglas shopping zone just south of the Carson City line -- in particular Wal-Mart, which moved from Carson to Douglas this past year.

Overall, Douglas reported an 18.4 percent increase in taxable sales to $47.99 million for the month.

Lyon County, while not taking as much from the capital, also had an effect. Wholesale trade in durable goods rose nearly 26 percent there, general merchandise stores by 12 percent and apparel and accessory stores 38 percent.

Lyon reported $18.75 million in sales for an 11.2 percent increase in January.

Storey County's numbers dropped more than 90 percent for January. But almost all of the decrease was in construction where the total taxable sales went from $28.1 million a year ago to just $128,054 this past January. The different is almost completely because of building at the new industrial park located east of Reno along Interstate 80.

The county's numbers showed major increases in January 2001 as construction projects started and an even larger increase in January 2002 when they were fully under way. Total taxable sales for Storey this past January are now back to about $1.9 million -- the same level as in January 2000.