Yuletide taxable sales plunge
CARSON CITY -- The Christmas season was a grim one for Nevada merchants, according to a state report Friday: The $3.92 billion in goods and services purchased during December was down 16.2 percent compared with the same month a year ago.
The state Taxation Department report shows that government tax collections based on the sales showed a worse slump, down 17.9 percent. The taxes totaled $289.7 million, including $78 million for the state and the balance for schools and local governments.
Taxable sales were down in 13 of Nevada's 17 counties, including the two biggest population centers of Clark County, which encompasses Las Vegas, and Washoe County, which includes Reno.
In Clark County, sales dropped 16.7 percent to $2.9 billion. Washoe County sales fell 17.6 percent to $567.5 million.
Sales by merchants now are down 7.5 percent for the first half of the fiscal year. Taxes based on those sales are down 8.8 percent for the same period.
Gov. Jim Gibbons stated the report "clearly indicates that Nevada is in a deepening recession" and that Nevadans, during a month when they usually spend the most money, "are continuing to tighten their belts because they have less money to spend."
As he has in past months when bleak sales reports came out, the Republican governor restated his opposition to higher taxes, saying, "No one in good conscience should ask our people and businesses to pay more in taxes when they are already making do with less."
The Taxation Department report shows that restaurant and bar sales -- viewed as good indicators of Nevada's tourism industry -- dropped 9.5 percent in December, to $525.7 million compared with $580.8 million a year earlier.
General merchandise sales totaled $522.5 million, down 7.7 percent; while clothing store sales totaled $324.8 million, down 19.4 percent.
Vehicle and auto part sales were $264.1 million, down 34 percent; building material sales dropped 28.1 percent to $131.9 million, although actual construction of buildings was up 18.2 percent, to $22.7 million.
