Taxable sales drop in September

RENO -- Nevada merchants saw a 5.2 percent drop in taxable sales statewide, but there were some bright spots to an otherwise dour report released Monday by the Nevada Department of Taxation.

Taxable sales for September totaled $3.97 billion, a 5.2 percent decrease from September 2007, according to the report.

But officials said that a tax amnesty program, which let merchants report previously unreported tax liabilities without penalty, accounted for $39 million of the total. Without that, taxable sales declined 6.15 percent from the same month a year ago, the report said.

Gross revenue collections from sales and use taxes totaled $283.8 million in September, a nearly 9 percent decline from the same month in 2007. For the fiscal year that began July 1, collections are down 4.7 percent.

The report said taxes collected under the amnesty program amounted to about $3 million. Without that, collections would have dropped nearly 10 percent from September of last year.

"September tax collections continue to reflect the current economic downturn," Gov. Jim Gibbons said in a statement. "Fortunately, the tax amnesty program has realized significant and unanticipated tax revenues which have allowed Nevada to stay within the scope of the projections made by the Economic Forum over the summer.

"The administration will continue to monitor and plan for the effects of the impaired housing market, sluggish consumer spending and the overall condition of the economy," Gibbons said.

The report said collections for the fiscal year so far are $1.7 million above the Economic Forum's projections, mostly because of amnesty receipts.

The state Taxation Department said a breakdown of the $3.9 billion in September sales showed that Clark County, which includes Las Vegas, had a 6.3 percent decline while Washoe County, encompassing Reno, had a 9.2 percent decrease.

Sales in Clark County totaled just over $2.8 billion in September, while sales in Washoe County amounted to $580.5 million.

The Taxation Department report shows that restaurant and bar sales -- viewed as good indicators of Nevada's tourism industry -- dropped 19.6 percent, to $501.2 million from $623.4 million a year ago.

Vehicle and auto part sales statewide were $337.1 million, down 24 percent. Building material sales rose 1.3 percent to $185.4 million, but actual construction dropped 30 percent to $31.5 million.

Clothing store sales totaled $260.7 million in September, down 6.5 percent; general merchandise sales amounted to $430.5 million, up nearly 28 percent; and durable goods wholesaling added up to $321.8 million, up 1.1 percent.

Taxable sales on mining rose 6.5 percent to $17.1 million in September, while taxes on support activities for mining soared 276 percent to $15.7 million, the report said.

Utility sales increased 66 percent to $44.7 million.