County’s Taxable Sales Increase 7.6% to Record High

Healthy retail spending brought Orange County’s taxable sales to a record $25.4 billion last year--a 7.6% jump from the year before.

Adjusted for inflation, that translates to real growth of 2.9%, according to a report released by the State Board of Equalization.

Among Orange County cities, it was size that mattered in figuring total taxable sales.

The county’s two most populous cities--Anaheim and Santa Ana--once again topped the list in total retail spending: Anaheim’s taxable sales totaled $2.9 billion, up 3.6% from last year. Santa Ana was No. 2 with taxable sales of $2.6 billion, an 11.6% jump over 1987.

Of the top 10 cities in taxable sales, all retained their rankings except Huntington Beach and Orange. Those two cities switched places, with Huntington Beach slipping to No. 6 and Orange moving up to No. 5.

In terms of types of goods sold, Costa Mesa, home of South Coast Plaza and Harbor Boulevard’s car dealerships, topped the list of apparel, general merchandise and car sales and supplies--even though it is only the seventh-largest city in the county.

And shoppers in Anaheim and Santa Ana headed the list in spending on dining out.

Irvine, home of the Irvine Auto Center, ranked second in taxable sales for cars and supplies.

Statewide, 1988 proved to be a busy year for retailers. Taxable sales totaled $251.1 billion in 1988, an increase of $19.2 billion, or 8.3%, over 1987.

Those numbers, however, include late sales-tax returns, explained Jeff Reynolds, research division chief with the board in Sacramento. County numbers do not take those late returns into account.

So when comparable data is used, the state shows a 7.4% increase in taxable sales, which was just barely outpaced by the county’s 7.6% sales growth.

The taxable-sales figures measure consumer spending for products ranging from clothing and building materials to restaurants and service stations.

Historically, Orange County’s taxable sales growth runs well ahead of the statewide average, said Reynolds.

One reason the county last year failed to pull well ahead of the state could be Orange County’s high housing costs, suggested Alfred Gobar, an economic consultant with Brea-based Alfred Gobar & Associates. The big upswing in the price of homes “could have caused some people to be a little less willing to buy a new Mercedes,” Gobar said.

Moreover, Orange County’s population has been increasing at a slower rate than in the past. “Most of the population growth is either in Los Angeles County or the Inland Empire,” Gobar said.

1988 RETAIL SALES BY COMMUNITY City : Sales (in thousands)

Anaheim : $2,917,936

Santa Ana: 2,620,122

Costa Mesa : 2,143,389

Irvine : 1,830,275

Orange : 1,742,684

Huntington Beach : 1,521,594

Garden Grove : 1,181,051

Fullerton : 1,178,615

Newport Beach : 1,001,485

Buena Park : 861,274

Westminster : 741,905

Tustin : 568,193

Brea : 533,869

La Habra : 376,054

Fountain Valley : 373,309

Cypress : 262,553

Placentia : 255,455

San Juan Capistrano : 231,178

Stanton : 230,862

San Clemente : 208,827

Los Alamitos : 179,633

Laguna Beach : 176,692

Yorba Linda : 120,190

Seal Beach : 95,774

Source: State Board of Equalization