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APRIL RETAILING: Nevada taxable sales up a bit

Merchants notch slight uptick in business

CARSON CITY -- In some rare good economic news for the state, taxable sales rose in April, though by a modest 0.3 percent, for the first gain since October.

Taxable sales totaled $3.92 billion in April compared with $3.91 billion in April 2007, according to the report released Monday by the state Department of Taxation.

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  • Clark County taxable sales were up 0.2 percent in April, totaling $2.9 billion.

    For the year to date, taxable sales total $39.9 billion, 2.2 percent lower than for the same period in the previous fiscal year.

    The increase pretty much mirrors U.S. retail sales figures, which the Commerce Department is projecting will be up 1 percent in May because of a boost from the stimulus package that sent millions of dollars to U.S. taxpayers beginning in April.

    The Commerce Department two weeks ago reported that retail sales were up 0.4 percent in April, also primarily because of the tax rebates.

    Also like the national numbers, Nevada's taxable sales increase came despite a continuing slump in both auto sales and restaurant business.

    Wayne Frediani, executive director of the Nevada Franchised Auto Dealers Association, said car dealers don't expect sales to improve before mid-2009.

    "It's not just the price of gas, it's the home foreclosures, it's no access to credit and it's the uncertainty facing the overall economy," he said.

    There is a shift by consumers to more fuel-efficient cars and hybrids, but it will take time for production of these vehicles to ramp up to meet the new demand, Frediani said.

    "Auto sales over the next 12 months are going to be tough in Nevada and across the country," he said.

    For state officials still reeling from $1.2 billion in cuts and other fixes to the two-year budget, the amount of sales tax collected from the taxable purchases in April was cause for some modest optimism.

    Gov. Jim Gibbons, in remarks accompanying the report, said: "Nevada continues to realize the effects of a sluggish economy through the month of April for this fiscal year. Areas recording recent growth are commercial construction due to projects in Southern Nevada, accommodations representing tourist activity, as well as cautious consumer purchases within select categories. We will continue to be watchful in the coming months to see what impact all revenue collections will have on the state and local governments."

    The state share of sales taxes totaled nearly $78 million in April, a decline of 0.4 percent. But based on Economic Forum projections made June 20, this was actually an improvement to the state's most recent financial analysis.

    The forum projected that sales taxes would end up in the current fiscal year down by 3.6 percent over the previous year. So the smaller decline was good news.

    For the fiscal year through April, sales tax collections total $801 million, a 3.3 percent decline over the prior fiscal year, but still slightly better than the forum's projections of a 3.6 percent decline.

    Two months of collections remain to be reported for the 2007-08 fiscal year, which ended Monday.

    It was the forum's projections that forced the Legislature on Friday in a rare one-day special session to make $275 million in further reductions to state spending.

    The biggest increases in taxable sales in April were seen in the categories of electronics and appliance stores, up 45 percent, merchant wholesalers-durable goods, up 7.9 percent, accommodations, up 16 percent, specialty trade contractors, up 17.5 percent, and construction of buildings, up 80 percent.

    The state's major taxable sales categories were mixed in April.

    Motor vehicles and parts dealers were down 20.3 percent over April 2007; general merchandise stores were down 1.5 percent; home furniture and furnishings were down 13.1 percent, and bars and restaurants were down 2.3 percent.

    But clothing and accessories stores were up 5.3 percent and food and beverage stores were up 3.6 percent.

    Nine of Nevada's 17 counties recorded a decrease in taxable sales for April 2008 compared to April 2007; Carson City, Douglas, Elko, Lander, Mineral, Nye, Pershing, Storey and Washoe counties.

    Contact reporter Sean Whaley at swhaley@reviewjournal.com or 775-687-3900.



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    Average guy wrote on July 01, 2008 01:12 PM: Average Guys want work-

    Heres and ideal-

    get rid of all the political BS like politicians vote pandering to large public groups and saying things like we dont want Yuca mountains waste deposit.

    We want work- Alaska drills for oil and gives every citisen a $3000 a year check from that oil this more than pays for thier electirc.

    Give every sitisen of Nevada free electric and we will be more than happy to take those high paying jobs and tax benefits that would create...


    HELENWEILS wrote on July 01, 2008 07:31 AM: Here's proof positive that putting more money in the pockets of taxpayers works.
    Yet we have the idiot DemoRats that just don't understand that principle.
    Stupid, so very stupid.


    Stop Beating a Dead Horse wrote on July 01, 2008 06:55 AM: Everyday I see the same people with the same tired messages...GET A LIFE!!!

    Republican Hater--If you were paying more in taxes and our current president was taking the same spineless "do nothing" stance as his predecessor in keeping terrorism off of American soil (zero attacks since 911), you would be be complaining about him doing nothing and paying too much for that. If you want to talk about waste, look at your very unpopular Democratic controlled Congress (18 percent approval rating). They approve the budget (and tack on billions in earmarks).

    Don't worry though. If the presidential polls are right,looks like you'll get a chance to pay more taxes and give away more of the people's money to deadbeats in the very near future. Being an American means you have the right to life, liberty and the pursuit of happiness. It doesn't mean you're "entitled" to anything nor should you expect it.

    Jack--I don't know if you were once arrested, spent time in prison or were rejected from Metro, but I have no problems with our police force expanding to meet the needs of our growing city. These people put their lives on the line every day to protect you. The media only feeds on the negative and any bad publicity we've seen is one drop compared to the bucket of great things these men and women do for our community. Instead of wasting your time here criticizing them, why don't you get out from behind your computer and go out and do a thousandth of the good they do every day.


    Republican Policies wrote on July 01, 2008 05:19 AM: The whole problem can be attributed to the last seven years of foolish republican spending which in turn dragged the value of the dollar down about 50%. That $5 trillion that Bush and company blew on tax cuts, wars and nation building is coming home to roost.

    Any person of normal intelligence should have seen this coming long ago.


    Jack wrote on July 01, 2008 04:31 AM: This is your Cop Sales Tax.

    Wouldn't it be nice if you could keep your money instead of giving it to a bunch of crooks with badges and guns.

    Maybe then you could afford that gallon of milk or load of bread. NO you all just had to approve that sales tax increase. Now your stuck with it for the next 17 years or so.