2001 Fourth Quarter Taxable Sale
2001 Fourth Quarter Taxable Sales
John Chiang, Chair, State Board of Equalization, announced today that growth in taxable sales in California declined during the fourth quarter of 2001, posting the second consecutive decline in quarterly growth. Transactions subject to the sales and use tax totaled $115.7 billion during the fourth quarter of 2001, a decrease of $2.8 billion or 2.3 percent from the fourth quarter of 2000.
In constant dollar terms, taxable sales declined by 0.8 percent over the same quarter a year ago. The California Taxable Sales Deflator measured a deflation rate of 1.5 percent for the fourth quarter of 2001.
Retail stores posted taxable sales of $79.4 billion, a 1.1 percent increase over the same period a year ago. Retailers of durable goods experienced a 4.9 percent increase, while non-durable goods showed a 2.4 percent decrease.
In the durable goods category, new car dealers posted taxable sales of $14.2 billion during the fourth quarter, a 25.3 percent increase over the same period a year ago. That increase resulted from aggressive marketing by automobile manufacturers who offered significant consumer incentives for new car purchases. Construction contractors showed a decline in growth over the same period last year with taxable transactions of $4.3 billion, a decrease of 8.0 percent. However, retailers of building materials registered continuing growth in sales. Building material dealers posted taxable sales of $6.0 billion, up 5.0 percent from a year earlier.
Gasoline consumption decreased slightly and measured 3.7 billion gallons. Additionally, the average price of gasoline during the fourth quarter was $1.300 per gallon, a 21.2 percent decline from the previous year's price. During the fourth quarter of 2001, service stations posted taxable sales of $5.3 billion, a 21.1 percent decline from the fourth quarter of 2000.
Although retail stores' sales increased slightly during the fourth quarter 2001, business and personal services taxable transactions amounted to $5.6 billion, a decline of 3.6 percent over the same period a year ago. Additionally, all other outlets, comprised primarily of manufacturing and wholesale businesses, saw their taxable transactions decline 10.1 percent to total $30.8 billion.