Business News
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- Written by: California Board of Equalization
SACRAMENTO – Betty T. Yee, chairwoman of the Board of Equalization (BOE), has announced that taxable sales in California decreased 16.2 percent in the first quarter of 2009, reflecting the depth of the national recession.
Taxable sales in California continued their unprecedented decline, totaling only $107.2 billion during the first quarter of 2009, a drop of 20.7 billion from the first quarter of 2008. The year-over-year decline in quarterly taxable sales continued for the seventh consecutive quarter, the longest consecutive slide since World War II.
“The unprecedented decline in taxable sales last year continued with weak housing and vehicle sales,” said Chairwoman Yee. “Californians have been concerned about job security, and many consumers with the ability to spend have chosen not to do so.”
In the nine-county San Francisco Bay Area, taxable sales declined 16.4 percent from the same quarter a year before.
First quarter 2009 taxable sales declined in the Bay Area’s three largest cities: San Jose 20.2 percent, Oakland fell 18.4 percent, and San Francisco fell 17.2 percent. Santa Clara County declined 19.7 percent.
In Mendocino County, taxable sales declined 18.4 percent. One of the largest declines in the First Equalization District was a decline of 24.1 percent in San Benito County, while Monterey County declined 17 percent.
In constant dollar terms, taxable sales decreased by 13.1 percent over the same quarter a year ago. The California Taxable Sales Deflator measured an inflation rate of -3.5 percent for the first quarter of 2009.
In comparison, the California CPI rose 0.1 percent. Constant-dollar taxable sales have also declined since the third quarter of 2007. The first quarter of 2009 decline was the steepest on record.
However, personal income declined 1.6 percent. This is consistent with typical growth patterns during periods of economic weakness.
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 from the first quarter of 2000 through the first quarter of 2009 and can be viewed on the BOE Web site at www.boe.ca.gov/news/tsalescont.htm.
In early 2007, the California State Board of Equalization began a process of converting business codes of sale ands use tax permit holders to North American Industry Classification System (NAICS) codes.
This process is now complete; over one million permit holders were converted from the previous business coding system to the NAICS codes.
Beginning in 2009, the board's reports summarize taxable sales and permits using the NAICS codes. As a result of the coding change, however, industry-level data for 2009 are not comparable to that of prior years. Therefore, they will not publish year-over year percentage changes by industry until 2010.
View all Taxable Sales in California for the first Quarter of 2009 here: www.boe.ca.gov/news/tsalescont09.htm.
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- Written by: Editor
SACRAMENTO – The California Department of Food and Agriculture is announcing four vacancies on the California Organic Products Advisory Committee.
This committee advises the CDFA secretary on current issues related to organic food production and makes recommendations on all matters pertaining to the California Organic Program.
The vacancies include: one producer alternate, one environmental alternate, one technical alternate and one consumer alternate.
The environmental, technical and consumer representatives must not have a financial interest in the direct sale and marketing of organic products.
The term of office for committee members is three years.
Members receive no compensation, but are entitled to payment of necessary traveling expenses in accordance with the rules of the Department of Personnel Administration.
The California Organic Program is responsible for enforcement of federal and state law governing organic production.
These statutes protect consumers, producers, handlers, processors and retailers by establishing standards under which fresh agricultural products may be labeled and sold as organic.
The California Organic Program is funded entirely by industry fees and assessments.
Individuals interested in being considered for an appointment should send a letter of consideration and include a letter of recommendation from the industry. Nominations will be accepted until the positions are filled.
Applications should be sent to California Organic Program, 1220 ‘N’ Street, Sacramento, CA 95814 or emailed to
For further information on the California Organic Program and committee vacancies, contact David Carlson at 916-445-2180.
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- Written by: Editor
SACRAMENTO – Betty T. Yee, chairwoman of the Board of Equalization (BOE), has released gasoline and diesel consumption figures for California for December and the fourth quarter of 2009.
Gasoline consumption declined 2.2 percent in December and declined 1.7 percent in the fourth quarter compared to the same month and quarter in 2008.
Diesel consumption increased 3.7 percent in December, the first monthly increase since February 2008. In the fourth quarter diesel consumption declined 3.9 percent compared to the same period in 2008.
“The fourth quarter decline in diesel consumption is the smallest decline since early 2008, and it provides some evidence that the economy is slowly improving,” said Chairwoman Yee.
For all of 2009, California gas consumption declined 1.5 percent, compared to a 4.1 percent decrease for all four quarters of 2008.
In the fourth quarter of 2009, Californians used 61.4 million gallons of gasoline less than the fourth quarter 2008, which is a decline of 1.7 percent.
In December 2009, gasoline demand declined 2.2 percent when Californians used 1.237 billion gallons of gasoline compared to 1.265 billion gallons the same month in 2008. The average California gasoline price at the pump in December was $2.96 per gallon compared to $1.87 in December 2008, a 58.3 percent increase.
Gasoline sold in December generated approximately $306 million in sales tax during that month, an estimated $131 million more than generated last year.
December sales and use tax revenues from gasoline would have been about $34 million less had the state portion of the sales and use tax not increased by one percent on April 1, 2009.
Diesel fuel sold in California during December totaled 232 million gallons compared to the previous year total of 223 million gallons, which is an increase of 3.7 percent.
California diesel prices were $2.91 per gallon in December 2009 an increase of 23.8 percent compared to December 2008 when the average diesel price was $2.35 per gallon.
Diesel consumption in California declined 3.9 percent in the fourth quarter of 2009 when Californians used a total of 654 million gallons of diesel compared to the fourth quarter of 2008 when Californians used a total of 680 million gallons. This decline is much less than the 10.6 percent decline in the third quarter.
The BOE is able to monitor gallons through tax receipts paid by fuel distributors. Figures for January 2010 are scheduled to be available at the end of April 2010. All monthly, quarterly, and annual figures can be viewed at: www.boe.ca.gov/sptaxprog/spftrpts.htm .
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- Written by: Office of Sen. Patricia Wiggins
Existing law grants the Department of Alcoholic Beverage Control (ABC) with the exclusive authority to administer the provisions of the ABC Act in accordance with laws enacted by the Legislature.
This involves licensing individuals and businesses associated with the manufacture, importation and sale of alcoholic beverages in this state and the collection of license fees or occupation taxes for this purpose.
Existing law, known as the "tied-house" law, separates the alcoholic beverage industry into three component parts, or tiers, of manufacturer (including breweries, wineries and distilleries), wholesaler and retailer (both on-sale and off-sale).
According to Wiggins, who chairs the Senate Select Committee on California’s Wine Industry, “The complex restrictions of the ABC Act's tied-house laws make it difficult for wine and brandy manufacturers to utilize simple, modern ways of responding to consumer inquiries.”
She noted that current law references electronic Internet inquiries which could be narrowly construed to prohibit other types of electronic communications – such as texting.
Wiggins' bill, SB 1096, updates the law to allow wine customers to use modern technology, including texting and other electronic methods, to make inquires regarding where to purchase a winemaker’s wine.
Now that it has been approved by the Senate, SB 1096 next heads to the Assembly for consideration.
Wiggins represents the premium winegrowing regions of Lake, Mendocino, Napa and Mendocino Counties.
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