Headline


NR# 9-A
Date: February 16, 1999
Customer and Taxpayer Services Division

Andal Announces 1999 Taxable Sales - Second Quarter

Dean Andal, Chairman, State Board of Equalization (BOE) announced today that taxable sales in California grew at a strong rate during the second quarter of 1999. Transactions subject to sales and use tax totaled $98.1 billion during the second quarter of 1999, an increase of $8.1 billion or 9.0 percent over the second quarter of 1998.

In constant dollar terms, taxable sales grew by 8.6 percent over the same quarter a year ago. The California Taxable Sales Deflator measured an inflation rate of 0.3 percent for the second quarter of 1999.

Retail stores posted taxable sales of $63.0 billion, an increase of 11.0 percent over the same period a year ago. Retailers of durable goods experienced a 12.8 percent increase, while nondurable goods retailers experienced a 9.3 percent increase.

In the durable goods category, new car dealers had another quarter of double-digit growth. New car dealers posted taxable sales of $10.0 billion during the quarter, a 13.1 percent increase over the second quarter of last year. This follows the 15.2 percent increase shown in the first quarter of 1999. Retailers of building materials registered continuing strong growth in sales as California's construction industry continued to perform well. Building material dealers posted taxable sales of $5.2 billion, up 17.1 percent from a year ago. Construction contractors had taxable transactions of $4.2 billion, an increase of 12.8 percent from the second quarter of 1998.

Gasoline consumption showed a slight increase, measuring 3.7 billion gallons. That increase was slight to moderate, representing a 2.8 percent increase from the second quarter 1998, even though the average price of gasoline during the second quarter jumped to $1.415, a 22.6 percent increase from the previous year's second quarter and a 25 percent increase over the first quarter of 1999. Service station sales during the second quarter 1999 increased significantly, posting a 21.2 percent increase when compared with the second quarter 1998.

Most retailers of nondurable goods experience various levels of sales. Restaurants had sales of $8.1 billion, increasing 7.5 percent while general merchandise stores realized sales of $8.7 billion, an increase of 13.5 percent.

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