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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