Increased taxable sales, lodging both good signs for Carson City economy

The economic climate of Carson City is following an upward trend, according to data released last month from the state of Nevada, as taxable sales revenue made significant gains over the past 12 months.

Taxable sales in the Nevada state capital increased by 16.5 percent as of May 31 compared with the end of May last year, the Combined Sales and Use Statistical Report released by the Nevada Department of Taxation shows, posting taxable sales of nearly $95 million so far in 2017.

The report also showed fiscal year-to-date taxable sales approaching $958 million, a 10 percent increase over amounts published last year at this time.

Carson City's taxable sales numbers for 2016-2017 rank it in the upper one-third (fifth) among 17 counties in Nevada.

While automobile sales and services continue to post the highest taxable sales numbers in Carson City, significant gains were also made this year in rental and leasing business, building materials, durable goods merchandise, even the performing arts and spectator sports industries.

Taxable sales of durable goods have exceeded $6.6 million thus far in 2017, a 41 percent increase over this time last year and 10 percent higher in total fiscal year-to-date taxable sales from 2015-16.

A nod to the near-record increase in residential building activity between 2016 and 2017, sales of building materials have risen around 13 percent over the past 12 months.

Fiscal year-to-date taxable sales in this industry exceeded $106 million during 2016-17.

Likewise, rental and leasing services jumped 21 percent between 2016 and 2017. Fiscal year-to-date taxable sales broke $15 million in the fiscal cycle that just ended, a 32 percent increase over the previous fiscal year.

Building activity has risen sharply in Carson City since fiscal year 2015-16 to a 13-year high at the end of 2016-17, during which nearly $100 million in permit valuations were recorded, according to the latest Community Development Report from the Consolidated Municipality of Carson City.

Over the past decade and a half, only fiscal year 2003-2004 has posted higher building permit valuations in Carson City than the year just ended.

More residential construction has occurred in Carson City between 2016 and 2017 than any other period over the last decade.

Close to 300 residential building permits have been issued from 2016 to 2017, by far the largest thrust coming from multi-family and single-family detached projects.

Though not nearly as lucrative as other taxable sales industries in Carson City, the performing arts and spectator sports grouping has posted an eight percent gain in 2017 over this time a year ago.

But that's merely the tip of the iceberg compared with the 2016-17 fiscal year-to-date taxable sales, which totaled more than $1.5 million, a 99 percent increase over previous fiscal year-to-date taxable sales revenue posted in the state's annual report.

Visitor activity made significant gains in the last fiscal cycle, a trend that the Carson City Visitors Bureau has been monitoring closely since the area's rebranding efforts began in 2013.

"The facts show we possess a robust tourism economy that supports local business," CCVB Executive Director Joel Dunn said.

Over the past four years since Carson City's rebranding started, Dunn said room revenue earned by lodging properties has increased by about $4.5 million.

Carson City lodging businesses last year gathered $17.2 million in room revenue. That's close to a 36 percent increase over the nearly $12.7 million earned in 2012.

Dunn said lodging properties in Carson City are expecting to collect more than $20 million in room revenue this year, an increase of more than 60 percent from four years ago.

"Visitors to our region spent an average of $133 per overnight visitor in 2016," he said. "Carson City lodging properties had over 655,000 guests occupy rooms in 2016."

But room revenue is only one indicator of tourism growth, and represents just a portion of visitor contributions to the local economy.

Dunn said overnight visitor spending in the Nevada state capital topped $87 million last year, a number that does not include additional spending from an estimated one million-plus day visitors who stop in Carson City while staying in Lake Tahoe and Reno.

Taxable sales from food services in Carson City posted more than $95 million during the 2016-17 fiscal year that just ended, the state report shows, a five percent gain over the previous tax year.