Nevada Sales Fall 24 Percent in August

Taxable sales in Nevada plunged 24.1 percent in August, marking that 10th straight month of double-digit declines, the Nevada Department of Taxation reported Wednesday.

Merchants in August sold nearly $3.1 billion in goods, on which the state collected $242.3 million in sales and use taxes.

But officials said the report was exacerbated in part by an amnesty program that increased collections a year ago. That program, designed to entice reporting without penalty resulted in $263 million in added sales in August 2008. Without that, the month-over-month decline for August 2009 would have been 18.9 percent.

For the fiscal year that began July 1, the report said the state's general fund portion is $9.3 million below projections made in May.

"August's sales and use tax figures demonstrate that the people and businesses of Nevada continue to feel the effects of the recession," Gov. Jim Gibbons said in a statement.

Fifteen of Nevada's 17 counties reported declines, with the exceptions being Lander and Mineral counties, rural areas where purchases of mining equipment often skews results.

Clark County that includes Las Vegas, the economic engine of Nevada's tourism-dominated economy, reported $2.2 billion in sales for the month, a 26.1 percent drop from August 2008.

Elsewhere, Washoe County, which includes Reno, reported an 18.1 percent decline in taxable sales; Carson City, down 15.4 percent; Churchill County, down 29 percent; Douglas County, down 21 percent; and Lyon, down 11.6 percent.

All major industries reported declines, with construction posting a 47.5 percent drop, a reflection of Nevada's housing market slump.

Sales at bars and restaurants, a key indicator of Nevada's tourism industry, fell 10.5 percent statewide.

Auto sales and vehicle parts fell 16.4 percent, despite the federal government's Cash for Clunkers program that offered buyers $4,500 to trade in their old vehicles for new models. The program ended in August.