Nevada taxable sales fall 4.5 percent in February, but decline slows for 3rd straight month

Nevada taxable sales fall 4.5 percent in February

CARSON CITY, Nev. — Taxable sales in Nevada fell 4.5 percent in February compared with the same month last year, according to a report released Wednesday, but the rate of decline eased for the third straight month, signaling Nevada may be pulling out of its economic tailspin.

Statewide sales totaled $2.8 billion in February, on which $220.8 million in gross sales and use taxes were collected, the Nevada Department of Taxation reported. For the fiscal year that began July 1, taxable sales are down 14.1 percent.

The portion of taxes that have gone to the state general fund so far this fiscal year is $9.2 million, or nearly 2 percent, above revised projections the Economic Forum made in February before a special legislative session to address an $805 million budget shortfall for the biennium that ends June 30, 2011.

Gov. Jim Gibbons said the February report marked the third successive month of single-digit declines after 14 months of double-digit percentage drops.

“Taxable sales in 13 of 17 counties increased or experienced smaller declines in February over the prior year compared with January data,” Gibbons said in a written statement. Additionally, he said 10 of 12 major indicators improved in February from the previous month.

The report noted accommodations, and bars and restaurants posted sales gains. The two sectors are key indicators of the health of Nevada’s tourism dependent economy. Sales from accommodations rose 28.1 percent, while sales at food services and drinking establishments were up 7.4 percent from February 2009.

There also were gains in clothing and accessories stores, up 9.8 percent; general merchandise, up 2.7 percent; and motor vehicle and parts dealers, up 8.2 percent.

Nevada’s construction industry, which took a beating in the recession when the housing market collapsed, continued to suffer. Nevada leads the nation in foreclosures, and sales in construction trades plunged 57.9 percent from the same month a year ago, the report said.

Statewide sales of durable goods fell 21.6 percent.

Around the state, sales in populous Clark County, which includes Las Vegas, totaled $2.1 billion, a decline of 4.9 percent. In Washoe County, which includes Reno, sales of $371 million were down 4.5 percent.

Sales in Carson City, the hub of state government, remained flat at $48 million. Storey County reported the steepest decline of 35.3 percent, followed by Churchill and Lyon counties, where sales fell 25.8 percent and 22.7 percent, respectively.

Elko County, a big mining region, reported $74.6 million in sales, off 2 percent.