Taxable sales drop nearly 25 percent

Statewide taxable sales dropped dramatically in August, finishing the month just above $3 billion compared to $4 billion in the same month last year.

The Department of Taxation pointed out, however, that August 2008 sales were inflated by the tax amnesty program that produced $263 million in taxable sales the state wouldn't have otherwise had. Without the amnesty, the decrease would have been 18.9 percent - still ugly but not as bad.

In Carson City, the overall decline was 15.4 percent to $61.5 million. But for the first time in months, auto sales - the capital's largest tax generator - were up, albeit by just 1.9 percent. Dealers reported a total of $17.3 million in vehicle sales, boosted in large part by the "Cash for Clunkers" rebate program.

The book still was open, however, as to what impact the clunkers program might have on September's end-of-model-year and October's new car sales.

Dealers in the rest of the state didn't share the same success. Auto sales were off 16.4 percent statewide. That included neighboring Douglas County, where auto sales fell 14.8 percent compared to August 2008 and Washoe, where car sales fell 9.5 percent.

The good news from Carson auto sales, however, was erased by the weak sales in the capital's other major categories: General merchandise sales down 16.7 percent, building materials down 19.5 percent and home furnishings down 30 percent.

Churchill, which has been doing better than most counties in recent months, suffered a 28.9 percent drop to just more than $21 million.

Douglas reported a 20.9 percent decline overall with $47.7 million in sales. The county's biggest category, food services and drinking places - translation, Stateline's casinos - was down 22 percent to $11.8 million for the month.

Lyon fared relatively well with an 11.6 percent drop to $28.7 million. The county got a huge boost in the Construction of Buildings category which went from $8,987 in August 2008 to $2.77 million this August.

Washoe sales were off 18.1 percent to $465.5 million. But the statewide drop was driven by the 26.1 percent drop in Clark County which reported $2.2 billion in sales.

The steepest decline was reported by Storey County, where the monthly sales tax numbers are tied closely to activity at the Tahoe-Reno Industrial Center east of Reno. Total sales in Storey fell 57.9 percent to just more than $3 million in August.

Storey, however, wasn't the only county with a much more serious decline in sales reported. Esmeralda County reported a 52.9 percent drop to $344,143 and Eureka reported $19.2 million in sales, a 36 percent decrease. In both those counties, the 2008 sales numbers were driven by major purchases by mining companies.

Only Lincoln and Mineral counties were up from a year ago, the former by just 1.5 percent but Mineral by 17.6 percent. The biggest jump in Mineral came from the Electrical Equipment and Appliance Manufacturing category which increased from $1,127 to $293,883.