|FOR IMMEDIATE RELEASE||Contact: Cory Fong, Tax Commissioner, 701-328-2770|
|Tuesday, August 1, 2006||Kathy Strombeck, Research Analyst, 701-328-3402|
TAX REVENUE GROWS 16 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 16 percent, or $177 million, during fiscal year 2006 that ended on June 30, 2006.
“This report supports other indicators of a robust North Dakota economy,” said Commissioner Fong.
Collections for all major tax types were up in FY 2006, including corporate income taxes, which increased by seventy-eight percent. Other tax types increased as well: sales tax collections were up 5 percent; coal taxes were up six percent; motor fuels, up ten percent; individual income tax grew by fourteen percent; and oil taxes were up thirty-eight percent. Inflation for the same one-year period was approximately 4.3 percent.
Fong attributes much of the economic growth to the state’s expanding and healthy energy industry, pointing to the significant oil and gas activity in the west and the development of several strategic renewable energy projects across the state.
“Clearly the success of the energy industry in North Dakota is not only good for western North Dakota – it is good for our entire state,” said Fong.
Recent developments in coal, wind, ethanol and biodiesel plants are also helping to bolster the state’s economy as well. Since 2005, more than one billion dollars in new renewable energy projects have been launched in the state.
“North Dakota has also implemented strategic economic policies, such as targeting our economic development efforts in five areas – value added agricultural, energy development, tourism, advanced manufacturing, and technology-based business services - that will continue to position our state for long-term growth and opportunity,” said Fong. “Together with the Centers of Excellence initiative – our state has put in place the right policies to ensure continued growth and expansion of our state’s economy.”
Despite the good economic news, there are difficulties as well. The agricultural industry faces some on-going challenges, as much of the state is experiencing a severe drought, Fong cautioned. “Some producers may not be able to take advantage of reasonably good commodity prices due to crop failures, and the livestock industry is faced with untimely herd sell-offs. Due in part to these concerns, a strong state revenue picture will be vitally important in this next legislative session which convenes in January 2007.”
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