Taxable Sales Index
Definition:These data come to the state on sales tax returns filed monthly by retail establishments with the Florida Department of Revenue. Taxable sales are those sales subject to Chapter 212, Florida Statutes. Generally speaking, the sales tax is levied on sales of goods, but not services, although there are some taxable services. Major categories of exempt sales are food not prepared for immediate consumption, medical and legal services, residential utilities, items purchased for resale, intangible personal property, and rentals over six months. It is estimated that taxable sales comprise 40-45% of all retail sales. The index is constructed by aggregating the categories of autos and accessories, other durables, tourism and recreation, and consumer nondurables. This grouping represents the bulk of non-investment spending and is analogous to personal consumption. The sum of these four categories is seasonally adjusted and a four month moving average is taken. It is finally adjusted by the Consumer Price Index.
Source:Office of Economic and Demographic Research
This indicates how strong consumer durable business is currently in Florida, which in turn is an indication of how much consumers are spending. This also gives an indication of current tourism strength in Florida. It has a positive affect on the index.