Friday, August 1, 2008

Clark County Budget Deficit Due to Real Estate Slump

From the DJC:

Clark County is experiencing a $6.1 million budget deficit due to slowing building conditions. Midway through 2008, the county’s revenue from new building purchases, which accounts for a quarter of the county’s sales and use taxes, has decreased rapidly.
Real estate taxes are down 41 percent since last year at this time, development fees are down 37 percent, and impact and clean-water fees are down 44 percent.
In addition, taxable retail sales are down 1.6 percent in cities outside cities in the country and down 1.9 percent inside cities in the county.
Property taxes, which account for 41 percent of the county’s overall budget, are up 4 percent due to a regular 1 percent annual tax hike.
The county predicts that its revenue will bounce back in 2010.