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Tax Commissioner Reports Over 8% Growth in 2nd Quarter Taxable Sales & Purchases

FOR IMMEDIATE RELEASE

Wednesday, October 9, 2019

Contact:           Sandy McMerty, Deputy Tax Commissioner, 701.328.3033


BISMARCK, N.D. – Tax Commissioner Ryan Rauschenberger announced today that North Dakota’s taxable sales and purchases for the second quarter of 2019 are up nearly 8.4%. Taxable sales and purchases for April, May and June of 2019 were $5.592 billion, an 8.37% increase over those months in 2018.

“We are pleased to report strong year-over-year taxable sales and purchases increases in the second quarter 2019 continuing the trend we have experienced the past nine quarters,” Rauschenberger said.  “With sustained lower commodity prices, it is significant that the state has been able to post solid taxable sales and purchases growth each quarter for more than two years.”

Rauschenberger also pointed out that the report indicated nearly all industry sectors, and the majority of cities and counties showed increases in the second quarter.  As in previous quarters, the western cities and counties generally grew at a faster pace due to the burgeoning oil and gas industry which continued to post production records in the second quarter.

Twelve of the 15 major sectors reported taxable sales and purchases gains when compared to the second quarter a year ago. Most notably, the mining and oil extraction tax sector increased by $127 million, growth of nearly 18.5%. Retail trade increased by $105 million, over 6.5% from 2018 levels.  A portion of the retail trade growth can be attributed to the US Supreme Court decision in South Dakota v. Wayfair allowing the collection of state and local sales and use taxes from remote sellers.

Of the 50 largest cities in North Dakota, the highest percent increases for the second quarter of 2019 (compared to the second quarter of 2018) were as follows:

  • Watford City – Increase of 35.6%
  • Beulah – Increase of 24.1%
  • Lincoln – Increase of 21.4%
  • Washburn – Increase of 20.7%
  • Rolla - Increase of !5.8%

Of the six cities with the largest population in North Dakota, all posted second quarter increases, with Dickinson’s growth the largest at 12.3% and Grand Forks the smallest, at .6%.

Counties with the highest percent increases for the second quarter of 2019 (compared to the second quarter of 2018) were as follows:

  • Burke – Increase of 78.0%
  • Bottineau – Increase of 32.8%
  • McKenzie – Increase of 30.4%
  • Benson – Increase of 24.9%
  • Bowman – Increase of 21.8%

All but one of these counties – Benson County – are in the state’s western “oil patch”.

The complete second quarter 2019 North Dakota Sales & Use Tax Statistical Report can be accessed online at www.nd.gov/tax.

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2nd Quarter 2019 Sales and Taxable Purchases Report

 

 

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Ryan Rauschenberger
Tax Commissioner
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News

Sign up to receive new releases via email. Select the "ND Tax News" list.

 

Tax Commissioner Reports Over 8% Growth in 2nd Quarter Taxable Sales & Purchases

FOR IMMEDIATE RELEASE

Wednesday, October 9, 2019

Contact:           Sandy McMerty, Deputy Tax Commissioner, 701.328.3033


BISMARCK, N.D. – Tax Commissioner Ryan Rauschenberger announced today that North Dakota’s taxable sales and purchases for the second quarter of 2019 are up nearly 8.4%. Taxable sales and purchases for April, May and June of 2019 were $5.592 billion, an 8.37% increase over those months in 2018.

“We are pleased to report strong year-over-year taxable sales and purchases increases in the second quarter 2019 continuing the trend we have experienced the past nine quarters,” Rauschenberger said.  “With sustained lower commodity prices, it is significant that the state has been able to post solid taxable sales and purchases growth each quarter for more than two years.”

Rauschenberger also pointed out that the report indicated nearly all industry sectors, and the majority of cities and counties showed increases in the second quarter.  As in previous quarters, the western cities and counties generally grew at a faster pace due to the burgeoning oil and gas industry which continued to post production records in the second quarter.

Twelve of the 15 major sectors reported taxable sales and purchases gains when compared to the second quarter a year ago. Most notably, the mining and oil extraction tax sector increased by $127 million, growth of nearly 18.5%. Retail trade increased by $105 million, over 6.5% from 2018 levels.  A portion of the retail trade growth can be attributed to the US Supreme Court decision in South Dakota v. Wayfair allowing the collection of state and local sales and use taxes from remote sellers.

Of the 50 largest cities in North Dakota, the highest percent increases for the second quarter of 2019 (compared to the second quarter of 2018) were as follows:

  • Watford City – Increase of 35.6%
  • Beulah – Increase of 24.1%
  • Lincoln – Increase of 21.4%
  • Washburn – Increase of 20.7%
  • Rolla - Increase of !5.8%

Of the six cities with the largest population in North Dakota, all posted second quarter increases, with Dickinson’s growth the largest at 12.3% and Grand Forks the smallest, at .6%.

Counties with the highest percent increases for the second quarter of 2019 (compared to the second quarter of 2018) were as follows:

  • Burke – Increase of 78.0%
  • Bottineau – Increase of 32.8%
  • McKenzie – Increase of 30.4%
  • Benson – Increase of 24.9%
  • Bowman – Increase of 21.8%

All but one of these counties – Benson County – are in the state’s western “oil patch”.

The complete second quarter 2019 North Dakota Sales & Use Tax Statistical Report can be accessed online at www.nd.gov/tax.

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2nd Quarter 2019 Sales and Taxable Purchases Report

 

 

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