|FOR IMMEDIATE RELEASE||Contact: Kathryn Strombeck, Research Analyst, 701.328.3402|
|Wednesday, September 29, 2010||Beth Boustead, Public Information Specialist, 701.328.3039|
FONG: North Dakota Report Reflects 2nd Quarter Growth
BISMARCK, N.D. – Tax Commissioner Cory Fong today released a key economic report that reflects a 14.6 percent growth in North Dakota’s taxable sales and purchases during the second quarter. According to the report, North Dakota’s taxable sales and purchases were $3.416 billion during the months of April, May, and June 2010 compared to $2.982 billion during the same months in 2009.
“This shows that North Dakota’s economy is continuing to grow,” said Fong. "These figures are very encouraging, especially when you consider the continued impact of the national economic recession on the majority of the states.”
Comparing the second quarter 2010 to second quarter 2009, the growth was fueled by the mining and oil extraction sector, which grew 98 percent.
“A strong and robust energy sector has been a key player in powering our state economy and lifting revenues,” said Fong. “And it has fueled the local economies throughout the western half of the state, filling hotels, motels, not to mention the cash registers for the local retailers, and creating demand for housing.”
Other sectors reporting growth include: transportation and warehousing, which grew 47.8 percent; wholesale trade grew 28.7 percent; financial, insurance, real estate, rental and leasing grew 27.1 percent; other services grew 12 percent; manufacturing grew 10.1 percent; professional, scientific, technical, and management services grew 9 percent; educational, health care, and social services grew 7.4 percent; retail trade grew 6.9 percent; accommodation and food services grew 5.7 percent; information industries grew 2.7 percent; and construction grew 1.8 percent.
“The retail trade sector typically gives a pretty good snapshot of what is going on with consumers and businesses,” said Fong. “Even though nationally consumer confidence is wavering, North Dakota continues to buck that trend as our retail trade sector grew at nearly seven percent and it came during a time of very little inflation.”
One sector, miscellaneous, remained relatively flat reporting a decline of less than one-tenth of one percent. And, two of fifteen sectors reported a decline in taxable sales and purchases: utilities sector was down 60.7 percent; and arts, entertainment and recreation sector dropped by 0.8 percent.
The drop in the utilities sector is due to a significant change that occurred effective July 1, 2009 at which time all natural gas sold in the state became exempt from sales and use taxes. This change in the taxable base accounted for the overall drop in sales from the second quarter of 2009, when natural gas was subject to a one percent statewide sales tax.
"We continue to look for ways in which the state can help strengthen and support our local communities and to strengthen consumers’ confidence in our state’s economy,” said Fong. “To that end, our focus remains on job creation and offering certainty for North Dakota’s businesses and consumers, especially in the area of sustaining the broad-based tax relief that’s been delivered during recent years.”
Of the 50 largest cities, the biggest percentage increases for second quarter 2010 were: Tioga, up 174 percent; Williston, up 87.5 percent; Lincoln, up 47.2 percent; Watford City, up 46 percent; and Bowman, up 31.7 percent.
Of the 50 largest cities, the biggest percentage of decreases during the second quarter 2010 were: Casselton, down 34.6 percent; Park River, down 32.1 percent; Hillsboro, down 22.9 percent; Northwood, down 21 percent; and Cooperstown, down 19 percent.
Counties with the highest percentage increases were: Burke County, up 110.2 percent; Williams County, up 97.8 percent; McKenzie County, up 50.8 percent; Stark County, up 31.8 percent; and Bowman County, up 29.3 percent.
The counties with the biggest percentage decreases were: Logan County, down 34.3 percent; Oliver County, down 26.1 percent; Grant County, down 16.8 percent; Griggs County, down 16.3 percent; and Emmons County, down 13 percent.
Complete North Dakota Sales and Use Tax Statistical Reports from Second Quarter 2010 can be accessed on the web at: www.nd.gov/tax/salesanduse/pubs/reports/2010-2-stat-report.pdf - (159kb pdf).
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