Tax collections down in October because of accounting issue
December 22, 2006
Nevada’s taxable sales collections show a decrease of six-tenths of 1 percent in October compared with the same month of 2005.
But it’s not because there was lower total amount of taxable sales. The decrease is due to adjustments from prior months that were recorded in October. Without those accounting adjustments, Taxation Director Dino Dicianno said total sales would have been up 3.4 percent.
Total sales for the month were $3.84 billion.
Gross revenue collections from the sales and use taxes increased in October by 2 percent to just under $300 million. But the general fund portion of those tax revenues fell $9 million short of the Economic Forum’s projections for October.
Gov. Kenny Guinn urged people to keep the data in perspective.
“While Nevada’s economy seems to be increasing at a slower rate, keep in mind the past couple of years produced phenomenal monthly double-digit growth,” he said.
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In Carson City, taxable sales for the month were up 4.2 percent to $85.2 million. But it was one of the few. Nine of Nevada’s 17 counties reported decreases including Douglas, Lyon, Churchill and Washoe.
One bright spot in western Nevada was Storey County, which reported a 26 percent increase – $1.6 million to $7.8 million. The apparent reason is a $2 million increase in the professional, scientific and technical services category that more than offset small decreases in other areas.
In Carson City, most of the roughly $4 million increase came from general merchandise stores, up more than 16 percent and $2 million in sales, and wholesale trade in durable goods, up about $1 million.
Douglas’ numbers were off almost $12 million for the month to $58.5 million – nearly 18 percent. That includes significant drops in most retail categories as well as construction spending.
Across the state, most counties were hurt by the seasonal shutdown of construction.
• Contact reporter Geoff Dornan at email@example.com or 687-8750.