Taxable May sales grow as does state’s economy

Thursday, July 29, 2004 | 10:47 a.m.

CARSON CITY -- Spurred by strong construction activity and car sales, Nevada's business sector posted its fifth straight month of double-digit taxable sales in May.

The state Department of Taxation reported Wednesday that statewide taxable sales reached $3.3 billion, up 12.6 percent. In Clark County, the sales totaled $2.4 billion, up 14.2 percent, also the fifth straight month of a double-digit increase.

"Nevada's economy is back on the right track," said Gov. Kenny Guinn. "We've had another double-digit increase in sales tax activity."

The state's share of the sales tax yielded $69 million for May, an 18.1 percent gain from a year ago. For the fiscal year to date, collections from the sales tax are up 13.7 percent, compared with the 5.9 percent estimated by the 2003 Legislature.

Every county produced an increase in taxable sales except Churchill (down 3.9 percent), Lincoln (off 12.1 percent) and Pershing (off 17.4 percent).

Sales of building materials statewide jumped 24 percent; wholesale trade increased 23.2 percent and car sales rose 13 percent.

The department said clothing stores posted a 16 percent gain compared with May 2003; home furniture sales grew 11.2 percent and eating-and-drinking businesses were up 11.7 percent.

Clark County continued its strong performance, posting its ninth double-digit increase in the past eleven months.

Sales of building materials in Clark County in May skyrocketed 29.8 percent to $169.3 million, after having an off month in April when the sales were up only 1.9 percent.

Auto sales in Clark County climbed 14.9 percent to $380 million in May. It was the sixth straight month of double-digit increases in car purchases. Bars and restaurants in Southern Nevada reported $543.5 million in sales, up 12.8 percent and the fifth consecutive month of higher than 10 percent gains.

The home furniture business rose 13.6 percent to $139 million; clothing stores were up 18.1 percent to $121.9 million; food stores rose 9.2 percent to $82 million and wholesale trade in durable goods was up 21.3 percent to $130.5 million in Clark County.

The department said sales in Washoe County grew to $506 million, up 6.8 percent and ending two straight months of double-digit increases. Taxable sales increased in Douglas County 15.8 percent to $61.6 million; Carson City posted a 10.4 percent gain to $78.4 million and Elko County inched up 1.2 percent to $61.6 million.

So far this year, collections from the cigarette tax for the state have reached $96.6 million, up 145.9 percent. The rate was increased by the 2003 Legislature from 35 cents to 80 cents per pack. It was estimated this would bring in a 157.3 percent increase.

Liquor tax receipts so far this fiscal year total $33 million, up 84.3 percent or 13 percent above forecasts. Collections from the insurance premium tax so far this fiscal year have reached $142 million, up 9.6 percent.

But the estate tax that is being phased out by the federal government is down 33.7 percent this fiscal year with $25.9 million in collections, or $13.2 million below last year at this time.