NR# 50-C
Date: November 19, 2002
Customer & Taxpayer Services Division
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.
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