Parrish Announces 2000 Taxable Sales First Quarter
2000 Third Quarter - Taxable Sales
Claude Parrish, Chairman, State Board of Equalization, reported today that taxable sales in California continued to grow at a strong rate as compared to the year earlier quarter. During the third quarter of 2000 transactions subject to the sales and use tax totaled $112.5 billion during the third quarter of 2000, an increase of $12.0 billion or 12.0 percent over the third quarter of 1999.
In constant dollar terms, taxable sales grew by 10.2 percent over the same quarter a year ago. The California Taxable Sales Deflator measured an inflation rate of 1.6 percent for the third quarter of 2000.
Retail stores posted taxable sales of $72.7 billion, a 12.0 percent increase over the same period a year ago. Retailers of durable goods experienced a 12.9 percent increase, while non-durable goods experienced an 11.2 percent increase.
In the durable goods category, new car dealers had another quarter of double-digit growth; the eleventh in the last thirteen quarters. New car dealers posted taxable sales of $12.3 billion during the quarter, a 16.5 percent increase over the third quarter of 1999. Retailers of building materials registered continuing growth in sales as California's construction industry continued to perform well. Building material dealers posted taxable sales of $6.0 billion, up 10.9 percent from a year earlier. Construction contractors also showed continuing strong growth over the same period last year with taxable transactions of $4.9 billion, an increase of 10.0 percent.
Gasoline consumption was up slightly and measured 3.8 billion gallons. That increase represents a 1.7 percent increase from the third quarter 1999, even though the average price of gasoline during the third quarter was $1.635, an 18.0 percent increase from the previous year's price. Service station sales during the third quarter again increased significantly, posting a 22.4 percent increase when compared with third quarter 1999.
Most other non-durable goods retailers experienced strong to moderate levels of growth. Restaurants had sales of $9.2 billion, increasing 10.2 percent while general merchandise stores realized sales of $9.5 billion, an increase of 7.5 percent.