Andal Announces 1999 Taxable Sales - Fourth Quarter

NR# 46-A
Date: August 31, 2000
Customer and Taxpayer Services Division

Andal Announces 1999 Taxable Sales - Fourth Quarter

Taxable sales in California continued to grow at a strong rate during the fourth quarter of 1999, announced Dean Andal, Chairman, State Board of Equalization (BOE). Transactions subject to the sales and use tax totaled $109.0 billion during the fourth quarter of 1999, an increase of $12.7 billion or 13.1 percent over the fourth quarter of 1998.

In constant dollar terms, taxable sales grew by 11.9 percent over the same quarter a year ago. The California Taxable Sales Deflator measured an inflation rate of 1.1 percent for the fourth quarter of 1999.

In the durable goods category, new car dealers had another quarter of double-digit growth; the eight in the last ten quarters. New car dealers posted taxable sales of $10.2 billion during the quarter, a 22.5 percent increase over the fourth quarter of 1998. Retailers of building materials registered continuing strong growth in sales as California's construction industry continued to perform well. Building materials dealers posted taxable sales of $5.2 billion, up14.4 percent from a year earlier. However, construction contractors showed modest growth over the same period last year with taxable transactions of $4.3 billion, an increase of 6.7 percent.

Gasoline consumption was up slightly and measured 3.7 billion gallons. That increase represents a 3.7 percent increase from the fourth quarter 1998, even though the average price of gasoline during the fourth quarter was $1.316 per gallon, a 17.6 percent increase from the previous year's price. Service station sales during the fourth quarter increased significantly, posting a 25.0 percent increase when compared with fourth quarter 1998.

Most other non-durable goods retailers experienced various levels of growth. Restaurants had sales of $8.3 billion, increasing 9.3 percent while general merchandise stores realized sales of $12.4 billion, an increase of 8.3 percent.

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