Nevada sales drop in June

CARSON CITY, Nev. - Nevada taxable sales fell 20.5 percent in June, marking the eighth straight month of double-digit declines and reflecting the continued reluctance or ability by consumers to spend money, the Department of Taxation reported Friday.

For the fiscal year ended June 30, sales dropped 12.7 percent from 2008.

Monthly sales were down in 15 of Nevada's 17 counties, including the state's population centers of Clark County, which encompasses Las Vegas, and Washoe County, which includes Reno.

Mineral and Eureka counties, sparsely populated areas where purchases of big mining equipment can skew sales figures, were the only exceptions, the report said.

Gross revenue collections from sales and use taxes totaled roughly $250 million in June, a nearly 19 percent decline from the same month last year. For the fiscal year, collections dropped 13 percent compared with 2008.

Gov. Jim Gibbons in a statement said the latest report shows "it is clear that Nevada continues to feel the effects of a deepening recession."

June sales were down in all major categories. Durable goods dropped 39 percent; construction, down 51 percent; autos and parts, down 26.3 percent; and restaurants and bars, down 9.2 percent.

Industries that saw gains were telecommunications, up 53 percent; performing arts and spectator sports, up 21 percent; and rail transportation, up 408.4 percent. Food and beverage store sales saw a slight uptick of 0.6 percent.

In Clark County, taxable sales totaled $2.5 billion, down 21.7 percent from June 2008. Sales by food services and drinking places, a key indicator of the Las Vegas tourism industry, dropped to $444.2 million, down from $488.9 million in June 2008, a 9.1 percent decline. For the fiscal year, the industry in Las Vegas was off 9.7 percent.

Monthly sales in Washoe County totaled $472.1 million, down 19.4 percent from the $585.4 million sold in June 2008. For the fiscal year, Washoe County sales dropped 16.4 percent.

For the fiscal year, only Churchill, Lander and White Pine counties reported gains of 9.3 percent, 15.7 percent and 11.6 percent, respectively.

The portion of sales and use tax collections that go to the state general fund are $13.5 million below projections for the fiscal year made by the Economic Forum, the report said. Those projections are used to form the state budget.

Friday's report was the latest in what's become a string of bad economic news in Nevada.

Last week, the state reported Nevada's unemployment rate hit a record in July, climbing to 12.5 percent statewide, 3.1 percent above the national unemployment rate of 9.4 percent.

And earlier this month, the state Gaming Control Board reported Nevada casinos won $10.8 billion from gamblers during the 2009 fiscal year, down almost 14 percent from the previous 12-month period.

Gaming revenues account for 30 percent of the state's general fund.