Nevada’s Taxable Sales Edge Down In May After Rare Up Month in April

CARSON CITY – Nevada’s taxable sales fell 1.9 percent in May over May 2009, a decline following April which saw the first positive month for the economic indicator in 20 months, the state Department of Taxation reported today.

May statewide taxable sales totaled $3.1 billion compared to $3.2 billion in May 2009.

Taxable sales are down just over 11 percent so far for the 2010 fiscal year, which ended June 30. One more month of collections, from June, must still be reported for the year.

Clark County taxable sales were down 1.4 percent in May to $2.3 billion, while Washoe County sales were off by 3.8 percent and totaled $425 million.

The largest increases in statewide taxable sales were seen in the categories of accommodations, up 23 percent; clothing and clothing accessories stores, up 10.7 percent; electronics and appliance stores, up 15.8 percent; professional scientific and technical services, up 19.3 percent; and telecommunications, up 14 percent.

Home furniture and furnishings also saw an increase in May, up 6.2 percent over May 2009.

Other major taxable sales categories were down in May, including the construction industry classification by 31.6 percent;, merchant wholesalers- durable goods, off 11.1 percent; motor vehicles and parts dealers, down 1.7 percent; general merchandise stores, off 0.3 percent; and food and beverage stores, down 7.2 percent. Bars and restaurants were down 0.7 percent.

Twelve of Nevada’s 17 counties recorded a decrease in taxable sales for May 2010 compared to May 2009. Esmeralda, Eureka, Lincoln, Pershing and White Pine counties recorded positive taxable sales for the period.

Gross revenue collections from sales and use taxes amounted to $248 million for May 2010 which represents a 3.3 percent increase compared to May 2009, and a 5.8 percent decrease for the eleven months of fiscal year 2010. Of this amount, approximately $2.7 million was collected under an amnesty program.

Compared to the January 2010 Economic Forum projections, the general fund portion of the sales and use taxes is 3.2 percent, or $21.5 million, above the forecast for the first 11 months of fiscal year 2010.

Gov. Jim Gibbons said Nevada’s taxable sales reports are showing signs of improvement, with six successive months of positive or single-digit declines after more than a year of double-digit declines.

“This administration remains committed to addressing these challenges by streamlining operations, improving customer services and maximizing the use of taxpayer dollars,” he said.