Taxable sales increase

Revenues to state and local governments from taxable sales got a boost in this year's second quarter, as businesses and consumers beefed up spending.

According to the Utah State Tax Commission, taxable sales rose 8 percent to $8.7 billion in the three months ended June 30, from $8.1 billion during the same quarter in 2003.

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

Retail trade, which comprises 54 percent of total taxable sales, fueled much of the increased activity as double-digit sales growth occurred in home improvement and garden retail centers.

In fact, gross sales for retail building and garden stores reached $560.1 million in the quarter, a 23.7 percent increase from $452.8 million during the same period a year ago.

Eating and drinking establishments also showed substantial gains at $561.7 million, up 9.2 percent from $514.6 million a year ago.

The increased sales mean more revenues for cities like American Fork, Centerville, Draper and Park City, which all showed double-digit increases in the percent change of taxable sales year-over-year.

Orem's direct sales hit $367.5 million, up 6.8 percent from $344 million. Park City's direct sales rose to $53.9 million in second quarter, up 20 percent from $44.9 million a year earlier during the same period. Salt Lake City's sales rose 5 percent to $988.5 million compared to $941.3 million a year ago.

But not all cities benefited from a rising economy. Brigham City's direct sales fell 21.5 percent to $37 million, down from $47.1 million a year ago. Riverton's sales dropped 5.3 percent to $22.8 million from $24 million. Tooele's sales fell 1.3 percent to $62.4 million, down from $63.2 million the previous year.

Business investment in the state rose 16.1 percent in the quarter, as new purchases drove double-digit growth in sales within the construction, manufacturing, transportation and communication industries.

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E-mail: danderton@desnews.com