|FOR IMMEDIATE RELEASE||Contact: Kathy Strombeck, Research Analyst, 701.328.3402|
|Tuesday, June 3, 2008||Beth Boustead, Public Information Specialist, 701.328.3039|
FONG: 2007 Taxable Sales and Purchases Exceeds $10 Billion
BISMARCK, N.D. – Tax Commissioner Cory Fong released a report today that shows the 2007 taxable sales and purchases grew by 10.3 percent, or over $960 million.
“This is another upbeat economic report, confirming the strength and stability of North Dakota’s economy,” said Fong. “While many other states struggled, North Dakota gained momentum.”
Retail trade, the largest of the industry categories, showed the strongest overall growth in terms of dollars, increasing by more than $247 million from 2006 or 6.4 percent.
“As a rule, the retail trade sector serves as a barometer of the economy, offering insight into the consumers’ pocketbook,” said Fong, “Based on the data provided in this report, the retail trade sector grew, indicating strong consumer confidence as our shoppers continued making purchases.”
The overall growth of 10.3 percent was nearly three times the rate of inflation for 2007. The Consumer Price Index measurement of inflation for 2007 was 2.8 percent.
Fourteen of fifteen industries reported growth during 2007. The largest growth was in the mining and oil sector, which grew by 94.5 percent in 2007 compared to 2006. Other sectors reporting growth include: transportation and warehousing sector increased by 18.9 percent; the financial, insurance, real estate, rental and leasing sector grew by 17.3 percent; wholesale trade grew by 14.4 percent; construction grew by 12.4 percent; the information industries sector increased by 9.3 percent; manufacturing was up 8.3 percent; accommodation and food services grew by 7.8 percent; other services increased by 7.6 percent; educational, health care, and social services sector was up 6.7 percent; retail trade grew by 6.4 percent; the arts, entertainment, and recreation sector was up 4.9 percent; miscellaneous was up by 3.5 percent; and the utilities sector grew by .7 percent. Professional, scientific, technical, and management services sector, the only sector to report a decrease, dropped 4.73 percent.
“North Dakota’s agricultural producers have weathered some pretty stormy seas over the last few years,” said Fong. “That changed in 2007 with favorable weather conditions in many areas, strong harvests, and healthy cattle markets, all combining to offer our farmers and ranchers solid revenues.”
The report includes statistics for the largest 200 cities in the state, of which 146 cities reported increases and 54 reported decreases from 2006. The largest four cities--Bismarck, Fargo, Grand Forks, and Minot--reported growth ranging from 5.1 percent in Fargo to 10.15 percent in Minot. These four cities increased taxable sales and purchases by $311 million over 2006.
Included in the annual report are statistics for each of the state’s 53 counties. Dunn County led all counties with increases in 2007, with a 83.3 percent growth over 2006. Sioux County was next, increasing by 55.8 percent; Slope County was up 33 percent; Williams County was up by 26.5 percent; and Mountrail County up by 23 percent. The counties recording the sharpest decline were Renville County with a drop of 9.8 percent; followed by Burke County down 9.1 percent; McLean County down 4.5 percent; Wells County down 4.4 percent; and Sheridan County down 2.7 percent.
The Sales and Use Tax Statistical Report is used primarily as a summary of economic activity that occurred in the state. To access the complete 2007 report, visit the Tax Department’s web site at: www.nd.gov/tax/salesanduse/pubs/reports/2007-annual-stat-report.pdf
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