Market Commentary and Intraday News
Nevada taxable sales climb 10.4 percent in May
299 days ago
By SANDRA CHEREB
(AP:CARSON CITY, Nev.) Taxable sales in Nevada shot up 10.4 percent in May compared with the same month a year ago, with solid sales of vehicles and durable goods helping to propel the state to a 23rd consecutive month of gains, the Department of Taxation reported Friday.
The increase was also attributed to large mining and utility projects in rural areas, where the purchase of large equipment can cause big swings in monthly comparisons.
Still, the May report marked good news for a state hard hit by the Great Recession, which sent sales spiraling downward for two years before they began a long, slow climb.
Nevada merchants in May sold $3.7 billion in goods, on which the state collected nearly $289 million in gross sales and use taxes. Revenue collections rose nearly 9 percent from May 2011 and 6.5 percent for 11 months of the fiscal year.
Sales in Clark County, Nevada's population and tourism center, rose 10 percent in May, to $2.7 billion. In northern Nevada's Washoe County, which includes Reno, sales totaled $464 million, up 4.9 percent from May 2011.
In all, 15 of Nevada's 17 counties reported increased sales, with only Lincoln and Lyon counties recording declines.
Double-digit gains were reported in sales of vehicles and parts, up 20.8 percent; accommodations, up 87.9 percent; durable goods, such as appliances, up 13.7 percent; machine manufacturing, up 84.9 percent; and food and beverage stores, up 11.2 percent, the report said.
Other notable sectors posting increases were bars and restaurants, up 7.8 percent; furniture and home furnishings, up 3.5 percent; clothing and accessories, up 8.9 percent; general merchandise, up 6.2 percent; and construction industry, up 6.8 percent.
The portion of sales and use taxes collected for the month that goes to the state general fund totaled $72.8 million, an 8.2 percent increase over May 2011, the department said.
So far, general fund sales and use tax revenues for the fiscal year are about 4.7 percent, or $34.5 million, above projections made in May 2011 by the independent Economic Forum. Forum projections are used to build the two-year state budget.
The department also said that for the fiscal year, tax collections on cigarettes are $595,000, or 0.7 percent, below projections, while taxes on other tobacco products are down $1.8 million, or 18 percent.
On the other hand, the liquor tax is running 2 percent, or $799,000, above projections, and the live entertainment tax has brought in a little over $1 million, or 6.7 percent, more than anticipated.
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