|FOR IMMEDIATE RELEASE||Contact: Cory Fong, Tax Commissioner, 701-328-2770|
|Tuesday, October 4, 2006|
2nd Quarter Taxable Sales And Purchases Remain Steady
BISMARCK, N.D. – Tax Commissioner Cory Fong announced today that during April, May, and June taxable sales and purchases grew to $2.37 billion, or 10.8 percent, compared to the same months in 2005.
“This is a good report that speaks to the strength of North Dakota’s diversified economy,” said Fong. “It shows that even with the high gas prices and the threat of drought conditions, consumers continued to be confident about the future.”
Thirteen of fifteen industries reported growth during the second quarter of 2006. Retail trade grew by 7.5 percent, representing an increase of $69 million; while the mining and oil extraction sector had the largest percentage of growth, rising by 50.7 percent when compared to the second quarter of 2005. Other sectors include: construction grew 49.8 percent; financial, insurance, real estate, rental & leasing was up 32.1 percent; manufacturing, up 20.8 percent; miscellaneous grew by 13.7 percent; utilities, up 12.2 percent; wholesale trade, up 10.5 percent; information industries grew 10.3 percent; arts, entertainment & recreation, up 5.3 percent; accommodation & food services grew 4.4 percent; professional, scientific, technical & management services grew 4 percent and other services grew 3.3 percent.
“While it is still too early to know for certain, it is likely that the third quarter report will reflect a slowdown in the rate of growth,” said Fong. “This summer’s record high fuel prices and severe weather-related events, coupled with rising interest rates and a slowing in the housing market stressed consumers’ pocketbooks, especially our agricultural producers.”
Two sectors reported drops in taxable sales and purchases: transportation and warehousing, dropped 3.2 percent; and educational, health care, and social services down .8 percent.
Fong added, “The taxable component of these industries is very slight and does not point to weakness in those industries.”
Of the 50 largest cities, the biggest percentage increases for the second quarter of 2006 were Tioga, up 35.3 percent; Williston, up 30.4 percent; Ellendale, up by 27.6 percent; Cavalier, up by 25.6 percent; and Hazen up by 19.2 percent.
The biggest percentage second quarter decreases for the 50 largest cities, were in Northwood, down by 25 percent; Cando, down 19.4 percent; Grafton, down 19.1 percent; Washburn, down 17.7 percent; and Cooperstown, down 13.3 percent.
Counties with the highest percentage increases were Renville, up 97.8 percent; Sargent, up 52.2 percent; Oliver, up 46.8 percent; Williams, up 30.3 percent; and Steele, up 21.2 percent.
The counties with the biggest percentage decreases were Sioux, down 22.4 percent; Towner, down 18.22 percent; Dunn, down 16.5 percent; Walsh, down 15.2 percent; and LaMoure, down 13.3 percent.
Complete North Dakota Sales and Use Tax Statistical Reports from Second Quarter 2006 can be accessed on the web at: http://www.nd.gov/tax.
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