| FOR IMMEDIATE RELEASE | Contact: Rick Clayburgh, Tax Commissioner 701-328-2770 |
| July 11, 2002 | Kathryn Strombeck, Research Analyst, 701-328-3402 |
North Dakota First Quarter Total Taxable Sales and Purchases Dip Retail Sales Remain Strong
BISMARCK --- The North Dakota Office of State Tax Commissioner released figures
today showing North Dakota’s total taxable sales and purchases during January,
February, and March of 2002 were $1.5 billion, a drop of 1.4 percent compared
to the first quarter of 2001.
North Dakota’s retail trade sector, the largest component of total taxable
sales and purchases, grew over 5.1 percent compared to the same quarter a year
ago. Nationally, retail trade gained only 3.2 percent for the same time frame.
Tax Commissioner Rick Clayburgh said, “Generally, retail sales are a good
barometer of consumer confidence. The continued strong activity in the retail
trade sector coupled with preliminary second quarter revenues are positive signals
for North Dakota’s economy.”
Clayburgh noted revenues from monthly sales tax returns filed in April, May, and
June are strong, indicating likely growth in taxable sales and purchases for the
second quarter once all the returns have been filed and processed. Clayburgh added
that the remaining second quarter 2002 sales tax returns are not due until July
31.
In addition to the growth in the retail trade, the construction sector grew over
13.2 percent and wholesale trade numbers were strong, with the farm machinery
and farm repair parts sector ahead of first quarter 2001 by 6.6 percent.
Clayburgh expressed continued concerns for the agricultural sector, “Our
farmers are facing another year of weather-related hardships of either drought
conditions or excessive rains, as well as low prices, which means an on-going
struggle for our rural communities. The July 1, 2002 sales tax exemption of used
farm machinery and repair parts will provide a small, necessary boost to this
vital sector of our economy."
Other sectors reported a decline. The mining and oil extraction sector fell 31
percent when compared to 2001 first quarter levels. Manufacturing numbers were
soft, falling 14.7 percent from the same quarter, transportation, communication
and public utilities numbers dropped 22.7 percent, and the services sector remained
relatively stable dropping 1.9 percent.
Of the 50 largest cities, the biggest percentage increases for first quarter of
2002 were: Northwood, up 39.8; Ellendale up 30.6 percent; Hazen, up 19.4 percent;
Stanley, up 15.1 percent; and West Fargo, up 12.4 percent.
The biggest percentage first quarter decreases for the 50 largest cities, were
in Beach, down 42.5 percent; Tioga, down 21.2 percent; Cooperstown, down 17.7
percent; Hillsboro, down 16.3 percent; and Park River down 14.7 percent.
Counties with the highest percentage increases were Sheridan, up 44.9 percent;
Sargent, up 24.3 percent; Nelson, up 20.3 percent; McKenzie, up 15.5 percent;
and Burke, up 14.3 percent.
The counties with the biggest percentage decreases were Golden Valley, down 41.9
percent; Dunn, down 17.3 percent; Hettinger, down 13.9 percent; Cavalier, down
13.3 percent; and Sioux, down 11.3 percent.
Complete North Dakota Sales and Use Tax Statistical Reports from First Quarter
2002 can be accessed on the web at: www.nd.gov/tax/salesanduse/forms/
