|FOR IMMEDIATE RELEASE||Contact: Kathy Strombeck, Supervisor, Research & Education, 701.328.3402|
|Friday, October 2, 2009||Beth Boustead, Public Information Specialist, 701.328.3039|
2009 First Quarter Taxable Sales and Purchases Slow But Stable
BISMARCK, N.D. – Tax Commissioner Cory Fong today issued a report that reflects a slowing in taxable sales and purchases for North Dakota during the second quarter, which includes the months of April, May, and June. The slowdown reflects a drop of 3.8 percent, or $118.9 million, compared to the same quarter in 2008.
“2008 was a record-setting year for taxable sales and purchases in North Dakota. If we compare this report to a more typical year, such as 2007, it shows that consumer spending is on pace,” said Fong.
Compared to the second quarter 2007, the 2009 report shows growth of 16.7 percent or $425.9 million. Retail trade, the sector generally looked to as a measure of the economy, was down 1.6 percent during second quarter 2009 when compared to the same quarter in 2008. Comparing retail trade to the second quarter 2007, the retail trade sector grew 8.1 percent.
“During the second quarter, nearly every county was experiencing flooding,” said Fong, “which meant many businesses shut down operations and consumers were not spending at the normal levels as they were focused on protecting their homes and businesses.”
Comparing second quarter 2009 to second quarter 2008, sectors reporting growth include: other services sector, which grew 18.6 percent; educational, health care, and social services sector grew 11.9 percent; information industries grew 6.3 percent; miscellaneous grew 2.6 percent; accommodation and food services grew two percent. Sectors reporting a decline include: mining and oil extraction, which declined 19.7 percent; transportation and warehousing dropped 9.8 percent; wholesale trade dropped 9.4 percent; financial, insurance, real estate, rental and leasing dropped 8.4 percent; arts, entertainment, and recreation dropped 7.6 percent; construction dropped 3.8 percent; manufacturing dropped 3.6 percent; utilities dropped 2.2 percent; retail trade dropped 1.6 percent; and professional, scientific, technical, and management services dropped 1.2 percent.
“The farm industry is an important sector for North Dakota and one on which we tend to rely,” said Fong. “In addition to dealing with the aftermath of spring storms and state-wide flooding, our farmers and ranchers continued to deal with elevated fertilizer and feed costs and a slowdown in commodity prices. Again, if we remove the exaggerated highs of 2008, the ag industry tracks along with general consumer spending, of a more typical year, such as 2007.”
Of the 50 largest cities, the biggest percentage increases for second quarter of 2009 were: Garrison, up 27.3 percent; Stanley, up 24.2 percent; Cavalier, up 25.7 percent; Carrington, up 21.3 percent; and Cooperstown, up 20.4 percent.
The biggest percentage second quarter decreases for the 50 largest cities, were in Grafton, down 46 percent; Tioga, down 16.5 percent; Ashley, down 15 percent; Williston, down 14.6 percent; and Hettinger, down 10 percent.
Counties with the highest percentage increases were Logan, up 41.3 percent; Oliver, up 39.6 percent; Traill, up 27.9 percent; Nelson, up 26.2 percent; and Benson, up 21.5 percent.
The counties with the biggest percentage decreases were Renville, down 60.6 percent; Billings, down 37.5 percent; Walsh, down 33.3 percent; Burke, down 32.2 percent; and Slope, down 26.8 percent.
The complete North Dakota Sales and Use Tax Statistical Report for Second Quarter 2009 is available on the Tax Department’s web site at: www.nd.gov/tax
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