Virginia retailers report slight increase in sales in Q1 2013

Taxable sales in Virginia increased slightly in the first three months of 2013, according to the latest report from the state’s department of taxation.

The commonwealth saw an estimated 1 percent increase in taxable sales over the same period in 2012. Most Peninsula localities followed that trend, as well.

James City County saw the largest dip, with a 2.5 percent decrease in taxable sales, while sales in Poquoson were up by about 5 percent. Williamsburg and Hampton saw 3 percent increases, and Newport News experienced an almost 2 percent decrease in taxable sales.

The report is published by the Weldon Cooper Center for Public Service at the University of Virginia. The center which posts quarterly and annual data dating back to 1996 on its website, coopercenter.org.

Taxable sales include manufacturing, wholesale and retail sales, including categories like mining, utilities, truck transportation and non-store retailers.

Most retail categories saw only slight movement in sales, staying true to the overall trend for the quarter.

Performing arts and spectator sports saw a 15 percent increase in sales in the first quarter of 2013, and sales at museums increased by 5 percent, while electronics and appliance stores experienced an almost 10 percent drop in sales throughout the state.

Non-store retailers, or Internet-based retailers, saw a 3 percent increase in sales. The Marketplace Fairness Act, which would allow states to charge sales tax on any online purchases shipped to their state, is expected to increase this category of sales tax revenue if passed. The U.S. Senate passed the bill in early May. It now sits in a House committee.

Retail categories like auto dealers and furniture stores saw decreases in sales in early 2013, while food and beverage stores — grocers — experienced a 4 percent increase. Virginia consumers stayed steady in their restaurant consumption, and sales at Virginia ABC stores, which sell alcoholic beverages, increased by 3 percent.

The state’s retail sales tax is scheduled to increase from 5 percent to 6 percent — including locality sales tax — on July 1 for Hampton Roads and Northern Virginia residents. The increase is part of a transportation package passed earlier this year.

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