|FOR IMMEDIATE RELEASE||Contact: Kathy Strombeck, Supervisor, Research & Education, 701.328.3402|
|Wednesday, May 29, 2013||Beth Boustead, Public Information Specialist, 701.328.3039|
Fong: Solid Growth Reported for 2012 Annual Taxable Sales and Purchases
BISMARCK, N.D. – Tax Commissioner Cory Fong today released two reports showing solid growth in taxable sales and purchases. During the fourth quarter 2012, which includes the months of October, November, and December, North Dakota's taxable sales and purchases were $6.745 billion, up $594 million or 9.7 percent compared to the fourth quarter 2011. For calendar year 2012, taxable sales and purchases were over $25.291 billion, growing 28.7 percent compared to 2011.
"On the heels of a strong run up to 2012, we had anticipated that the economy would keep growing throughout the year. During 2012, we continued to see statewide growth in all industry sectors," said Fong. "As we enter 2013, North Dakota is still well positioned for more growth, but we anticipate it will be at a generally slower, yet more sustainable pace than the last few years. This will likely become our new normal. A steadying in our growth will allow us to catch our breath, so to speak, so we can better meet the needs in those areas that are growing at a record-setting pace."
All industries increased for the year 2012. Construction grew by 52.2 percent; mining and oil extraction grew 43.6 percent; financial, insurance, real estate, rental and leasing was up by 37.1 percent; and wholesale trade grew 36.6 percent.
"The increases in construction and the wholesale trade sectors reflect optimism of North Dakota's businesses," said Fong. "That growth, coupled with the growth reported in retail trade, is good news for North Dakota and suggests that our consumers remained confident in our state's economy, enabling North Dakota's private businesses to withstand the drag from the continued national economic slump."
Other sectors reporting growth include miscellaneous, which was up 35 percent; manufacturing, which grew 27.5 percent; utilities grew 27.4 percent; other services were up by 20.6 percent; retail trade grew 16.5 percent; accommodation and food services grew 15.8 percent; professional, scientific, technical, and management services was up 15.6 percent; information industries grew 13.2 percent; arts, entertainment and recreation grew 10.9 percent; transportation and warehousing was up 7.1 percent; and educational, health care, and social services was up 3 percent.
The annual report includes statistics for the largest 200 cities in the state, of which 155 cities reported increases and 45 reported decreases compared to 2011.
The four major population centers--Bismarck, Fargo, Grand Forks, and Minot--reported growth for 2012 ranging from 9 percent in Fargo to 18.3 percent in Minot. These four cities reported taxable sales and purchases of $7.297 billion, an increase of $771 million over 2011.
Of the 200 cities, Minnewaukan led the growth of all cities with an increase of 146.4 percent growth over 2011. New Town was next, increasing by 117.4 percent; Columbus was up 112.3 percent, Alexander grew by 110.2 percent and Glenburn was up 94.6 percent.
Cities reporting the sharpest decline compared to 2011 include Gladstone, down 55.3 percent; Zap down 45.7 percent; Hazelton down 38.4 percent; Reynolds decreased 31.2 percent; and Walhalla was down 21.8 percent.
Included in the fourth quarter report are statistics for each of the state's 53 counties. Foster County led all counties with increases in October, November, and December 2012, with a 39 percent growth over 2011. Ward County was next, increasing by 33.1 percent; Nelson County was up 28.1 percent; Oliver County was up 27.2 percent, and Hettinger County was up by 24.2 percent. The counties recording the sharpest decline were Sioux County with a drop of 24.7 percent; followed by Bowman County down 22.4 percent; Kidder County down 19.8 percent; Slope County was down 18 percent; and Golden Valley County was down 14.1 percent.
The Sales and Use Tax Statistical Report is used primarily as a summary of economic activity that occurred in the state. The North Dakota Sales and Use Tax Statistical Reports from Fourth Quarter 2012 and the complete 2012 Annual Statistical report are available on the Tax Department's web site at: www.nd.gov/tax/salesanduse/pubs/.
Taxpayers can stay up-to-date on North Dakota tax-related matters by visiting the Tax Department's web site at www.nd.gov/tax or connecting with the Tax Department on Facebook and YouTube.
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