Clark County recorded $3.49 billion in December sales for a 1.3 percent increase when compared with December 2006. But Washoe County's sales fell to $688.6 million -- a drop of 3.2 percent.

"The December economic numbers show that Nevada's economy is experiencing many of the same challenges that are being seen in many other states," Nevada Gov. Jim Gibbons said in a statement. "Clearly, the nationwide housing problem, which is particularly acute here in Nevada, is having a significant impact as well."

Some categories of taxable sales increased sharply.

Clothing and accessory stores were up almost 10 percent, specialty trade contractors were up 29 percent, administrative and support services were up 47 percent, computer and electronic product manufacturing were up 98 percent and telecommunications rose 53 percent.

But other categories were down significantly. Motor vehicle and parts dealers posted a nearly 12 percent drop; general merchandise stores were down 3 percent; food and beverage stores were down nearly 5 percent. Home furniture and furnishings, apparently feeling the brunt of the housing crisis, were down almost 16 percent.

Gross revenue collections from sales and use taxes amounted to $352 million for December, a 2.29 decrease compared with December 2006. Compared with May 1 Economic Forum projections, the general fund portion of the sales and use taxes is $42 million, or 3.94 percent, below the forum's forecast for fiscal year 2008.

State taxation officials reported $72.6 million was collected and distributed to the state general fund for the quarter ending December 2007 from the modified business tax from general businesses and financial institutions. That was a 2.98 percent decrease compared to the same quarter of the previous year.

The Economic Forum forecast in May for this tax was $301 million for fiscal year 2008. The tax revenue for the first two quarters of fiscal year 2008 is down by $12.2 million, or 4.38 percent, from the forecast.

The softness in sales tax collections was felt statewide. Besides Clark County, the only other counties to show increases were Lincoln, Mineral, Pershing, Storey and White Pine. In addition to Washoe, those counties showing decreases were Carson City, Churchill, Douglas, Elko, Esmeralda, Eureka, Humboldt, Lander, Lyon and Nye.