December 2, 2011 > Taxable sales estimate up 8 percent in third quarter 2011
Taxable sales estimate up 8 percent in third quarter 2011
Submitted By Brian Miller
The California State Board of Equalization (BOE) has announced that taxable sales in California totaled $121.3 billion in the third quarter of 2010, up $5.8 billion (or 5 percent) from the same quarter in 2009. Personal income kept pace with taxable sales, increasing 5 percent over the same period.
"I'm pleased with the increase in taxable sales," said Betty T. Yee, First District Member of the BOE. "It's a good sign but we've a long way to go for a full recovery."
Additionally, more recent data indicate that a pronounced recovery in taxable sales continued into the third quarter of 2011. BOE's estimate of statewide taxable sales for the third quarter of 2011, based on cash receipts, shows that taxable sales are estimated to have risen 8 percent over the same period a year earlier.
Third quarter 2010 taxable sales in the nine-county Bay Area increased $1.7 billion (or 6.6 percent) over the third quarter a year ago. Third quarter taxable sales were positive in the region's major cities: San Francisco up 7.1 percent, Oakland up 2 percent, and San Jose up 9.9 percent over the same quarter the year before.
In constant dollar terms, taxable sales increased 4.2 percent in third quarter 2010 from the same quarter the previous year. The California Taxable Sales Deflator, which measures the rate of change of all taxable sales in the State, was up 0.7 percent in third quarter 2010. In comparison, the California Consumer Price Index, which measures the rate of change of common consumer goods, was up 0.9 percent in third quarter 2010.
California gasoline stations sales in third quarter 2010 dominated the other major industries in growth, increasing $955M, or 8.7 percent over the same quarter last year. With consumption growing slowly and a modest 3.1 percent increase in the price per gallon of gasoline, an analysis of these accounts indicates this growth was due to an increase in sales at these establishments of items other than fuel.
Clothing and accessories stores showed an increase in third quarter 2010 taxable sales of $402.4M, up 6.5 percent over the same quarter the year before. General merchandise, which represents the largest non-durable retail category, had an overall increase of 5.5 percent (or $561.3M) in third quarter 2010.
Motor vehicle parts and dealer sales were flat in third quarter 2010, posting only a 0.1 percent gain. Sales were buoyed by used car dealer sales, which increased 12.3 percent, but held back by losses in new car dealers (-1.9 percent) and other motor vehicle dealer sales (which include RVs, motorcycles, boats, and aircraft), decreased by 5.6 percent.
Sales for "All Other Outlets", which represents manufacture and wholesale, grew by $2.6 billion, a gain of 7.1 percent in third quarter 2010 over the same quarter last year. This sector was buoyed by manufacturing, growing 9.9 percent, and wholesale trade, growing at 7.4 percent. Pulling down this sector were finance and insurance, decreasing 10.6 percent, and healthcare and social assistance, decreasing 6.4 percent.
Taxable Sales in California is a quarterly report on retail sales activity in California, as measured by transactions subject to sales and use tax. It includes data about statewide taxable sales by type of business, as well as data about taxable sales in all California cities and counties.
For more information, visit www.boe.ca.gov