FOR IMMEDIATE RELEASE	Contact: Cory Fong, Tax Commissioner 701-328-2770
Wednesday, September 29, 2005	Kathryn Strombeck, Research Analyst, 701-328-3402

2nd Quarter Taxable Sales and Purchases Grow at Solid Pace

BISMARCK, N.D. --- Tax Commissioner Cory Fong announced today that during April, May, and June retail sales grew to $1.119 billion, driving the combined growth of all sectors to 4.7 percent in total taxable sales and purchases compared to the same months in 2004.

“This is a solid report and shows strength in our economy,” said Fong. “Even with the increasing energy prices, consumer confidence in our state remained strong as shoppers continued spending at a healthy pace.”

The mining and oil extraction sector grew 27.4 percent; transportation, communication and public utilities sector grew 7.6 percent; wholesale trade grew by 6.8 percent; retail trade increased by 4.5 percent; and the services sector grew by 4.5 percent. The construction sector was the only sector to report a decline, dropping 11.7 percent compared to the same three month timeframe in 2004.

According to Fong it is unknown at this time how much of an impact, if any, Hurricanes Katrina and Rita will have on North Dakota. “Looking forward, it is quite possible that the combination of the disasters that have hit the Gulf Coast along with the high energy prices could affect consumer spending in the coming months.”

Of the 50 largest cities, the biggest percentage increases for the second quarter of 2005 were Cando, up 38.2 percent; Wishek, up 27.1 percent; Williston, up by 27.1 percent; Walhalla, up by 14.7 percent; and Tioga up by 19.4 percent.

The biggest percentage second quarter decreases for the 50 largest cities, were in Ellendale, down by 21.1 percent; Beach, down 9.1 percent; Mayville, down 9 percent; New Town, down 8.7 percent; and Oakes, down 8 percent.

Counties with the highest percentage increases were Sargent, up 67.5 percent; Burke, up 50 percent; Renville, up 38.9 percent; Towner, up 30.7 percent; and Williams, up 25.6 percent.

The counties with the biggest percentage decreases were Nelson, down 23.4 percent; Steele, down 20.9 percent; Sioux, down 16.2 percent; Oliver, down 16 percent; and Dickey, down 11.8 percent.

Complete North Dakota Sales and Use Tax Statistical Reports from Second Quarter 2005 can be accessed on the web at:www.nd.gov/tax/salesanduse/pubs/