Utah taxable sales increase 9%

Revenues to state and local governments early this year got a boost from taxable sales, which rose to $8.1 billion for the three months ended March 31, a 9 percent increase from $7.4 billion in the same period a year ago, according to preliminary projections by the Utah State Tax Commission.

Taxable sales consist of final sales of most tangible personal property in the state and include services such as lodging rates, automobile leases, amusements and repairs to property.

The sales provide state and local governments with millions of dollars in revenues.

Since 2000, total taxable sales have been stagnant, shrinking government revenues. But this year may prove better. Douglas Macdonald, chief economist for the commission, anticipates 2004 will show a 3.9 percent increase in overall taxable sales.

Taxable sales increased a mere 0.1 percent in 2003 and 0.3 percent in 2002.

Macdonald's upbeat assessment for 2004 is welcome news over a commission report released just six months ago, which blamed the Sept. 11, 2001, terrorists attacks, increasing Internet sales and China imports for sinking taxable sales by $810 million.

The earlier report also noted that imports from China could still be hurting Utah manufacturers. About 18 percent of Utah's tax base is made up of taxable business-to-business purchases of equipment and supplies.

This year's first quarter showed strong gains in transportation, up 28 percent; communications, up 32.4 percent; retail motor vehicle sales, up 9 percent; and wholesale durable goods, up 12.5 percent. Retail sales of building and garden items increased 20.5 percent.

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E-mail: danderton@desnews.com