Thursday, November 28, 2002
Copyright © Las Vegas Review-Journal

Taxable sales in Nevada up in September

But increase skewed by 9-11 fallout

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CARSON CITY -- Sales by Nevada businesses climbed 7.5 percent in September, but state officials aren't bragging that it was a good month for the economy.

Gov. Kenny Guinn and the state Department of Taxation pointed out Wednesday that the increase was misleading because it was based on a comparison to September 2001, when terrorists attacked the World Trade Center and the Pentagon.

Those attacks spawned a national economic downturn, and revenues earned by businesses in September 2001 were dramatically lower.

Nevada's economy has been generally flat since the terrorist attacks and tax revenue has fallen far below expectations. About 35 percent of state government revenue comes from sales taxes.

Guinn has said repeatedly in recent weeks that the downturn has left the state $370 million short, forcing him to cut state spending. He also intends to request the Legislature allow him to take $100 million out of the state's rainy day fund.

"Another way of looking at Nevada's current revenue picture for sales and use tax is the state has lost one year's worth of anticipated planned gains in its general fund revenue," Guinn said.

Nevada businesses sold taxable goods valued at $2.751 billion in September, up $192 million from September 2001.

In Clark County, business sales were $1.968 billion, up 9.5 percent, or $170 million from a year earlier.

Washoe County sales were $470 million, up 5.4 percent, while Carson City sales were $71 million, down 1.6 percent.

Eleven of the 17 counties in Nevada reported declines in sales this September, though sales were compared with September 2001.

Esmeralda County sales were down 29.7 percent; Lander County sales were off 25.6 percent, and Pershing County sales were down 23.4 percent.