|FOR IMMEDIATE RELEASE||Contact: Cory Fong, Tax Commissioner 701-328-2770|
|Wednesday, August 3, 2005||Kathryn Strombeck, Research Analyst, 701-328-3402|
Tax Revenue Grows 14 Percent
BISMARCK, N.D. --- Tax Commissioner Cory Fong announced today that the total state and local tax revenue collected by the state tax department grew 14 percent during fiscal year 2005 that ended on June 30, 2005.
“The collections represent good, solid economic growth during a time when there were no tax increases,” said Commissioner Fong.
Collections for all major tax types were up in FY 2005. Sales tax collections and individual income tax each grew by eleven percent; corporate income taxes grew twenty-nine percent; oil taxes were up sixty-seven percent; motor fuels, up two percent.
“Individual income tax brackets are indexed for inflation to ensure that taxpayers do not pay at a higher tax rate simply due to inflationary increases in income,” said Fong. Inflation for the same one-year period was approximately 2.5 percent.
Fong added, “Growth in oil tax collections can be attributed to the increase in oil prices which continue to spur new production activity. The sustained record prices also triggered the removal of oil tax incentives, beginning in October 2004.”
The only tax type to decline in collections were the coal taxes with a decrease of seven percent in coal conversion and coal severance taxes. The decrease is primarily attributed to a plant maintenance shut-down last summer.
“The increased tax revenue is good news for North Dakota and is consistent with other reports of a growing economy,” said Fong. “Our economic strength and resulting growth in tax revenue help keep our state’s tax rates low.”