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December taxable sales could set Arizona holiday record in 2016

If Arizona consumer spending continues in the pattern it set this past summer, Arizona could see the best holiday retail sales since 2006. 

Taxable retail sales are up 5.3% from last year and Arizona merchants can expect to see a boost of 3.5% this holiday season.  That will equate to $8.7 billion in sales which is 1.2 percent more than the previous record of $8.6 billion set in December 2009. 

Though things have been moving slowly, they are moving in the right direction.  Over the past 10 years, businesses in Arizona have had a December average between 7.9% and 8.3% of the year’s total taxable transactions. 


During the the period between 2006 and 2016, 2012 saw the lowest taxable sales in December.  Sales were down almost a quarter from the $8.6 billion in 2009 though, December had still produced 8.1% of the year’s total taxable sales in Arizona.

Arizona has shown a 5.3% increase in sales for the Fiscal Year 2016, far outpacing the rest of the U.S where the average sales were only up 0.6%.  The sales totals for Arizona were calculated by the Arizona Department of Revenue from transaction privilege tax collections.  The increase in the sales reflects Arizona consumer confidence showing that it is at its highest level since the recession. 

Various industries have shown an increase.  The highest year-over-year increase was in real estate followed by building material and home improvement sales and then tourism-related industries such as food and liquor sales.  Retail sales reflecting direct-to-consumer sales was also up 12.3%.  Vehicle sales and parts also showed an increase in overall sales. 

The biggest decline in spending was in agriculture which was down 18.1% from last year.

If spending trends remain as they have been , retail sales in Arizona may to $100 billion in 2016.