Nevada taxable sales rise again in February

Thursday, April 29, 2004 | 10:41 a.m.

CARSON CITY -- Taxable sales in Nevada, one measure of the economy, reached $2.8 billion in February, up 13.4 percent from February 2003 and the second straight month of a double-digit increase.

The state Taxation Department reported today there were strong sales in cars, building materials and in restaurants and bars during the month.

And for the eight months of this fiscal year, the state has received $495.1 million as its share of the sales tax. That is 11.8 percent above last year at this time. The Legislature had predicted the sales tax would increase at a 5.9 percent rate.

Gov. Kenny Guinn said, "For eight straight months Nevada's sales activity has exceeded normal expectations and revenue projections. This is an indication of our economic recovery and short term stability."

He said tax receipts from cigarettes and live entertainment are behind estimates, "but it appears this will be compensated for by the increases in sales tax and the other new tax collections."

Taxable sales have increased by double-digit percentages in five of the past seven months. In January, taxable sales rose by more than 11 percent. Merchants in Clark County reported $2.1 billion in taxable sales, up 14.5 percent from February 2003. This was the sixth month in the last eight in which taxable sales rose by double digits.

The department reported that taxable sales statewide rose 22.5 percent for wholesale durable goods; 20.4 percent for building materials; 10.6 percent for general merchandise stores; 17 percent for car sales; 20.9 percent for clothing stores; 14.1 percent for furniture sales and 11.9 percent for eating and drinking places.

The department said that wholesale trade in durable goods in Clark County rose 22 percent to $115.6 million; building materials were up 24.6 percent to $130.2 million; general merchandise stores increased 11.9 percent to $173.2 million and auto sales increased 19 percent to $302 million.

Other categories in Clark County were clothing stores, which posted a gain of 21.9 percent to $109.9 million in taxable sales; home furniture was up 16.7 percent to $131.9 million; and bars and restaurants rose 13.1 percent to $479.5 million.

Taxable sales in Washoe County rose 8.8 percent to $434.9 million; Douglas County was up 14.5 percent to $53.3 million; Carson City gained 4.7 percent to $66.9 million and Elko County grew 7.9 percent to $53.5 million.

The department said the state collected $65.2 million in cigarette tax for the first eight months of this fiscal year, which is about 5 percent below legislative forecasts. The tax was increased from 35 cents to 80 cents per pack.