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Tax Commissioner Reports Over 22% Decline in 2nd Quarter Taxable Sales and Purchases

Bismarck, N.D. – Tax Commissioner Ryan Rauschenberger announced today that North Dakota’s taxable sales and purchases for the second quarter of 2020 are down 22.5% compared to the same timeframe in 2019. Taxable sales and purchases for April, May, and June of 2020 were $4.34 billion.

“The significant decline in taxable sales and purchases during the second quarter is the result of a combination of temporary coronavirus related shutdowns and slumping oil prices,” Rauschenberger said. “This quarter included the weeks during which Governor Burgum had mandated certain nonessential business closures.” 

Twelve of the 15 major sectors reported taxable sales and purchases declines when compared to the second quarter last year. Most notably, the mining and oil extraction sector decreased by $511 million (a 62.6% decrease) and the accommodation and food services sector decreased by $161 million (a 34.0% decrease). 

Rauschenberger noted that in the second quarter of 2019, the utilities sector was impacted by utility upgrades and a major storm, making that sector more unique in the second quarter of 2019, rather than the second quarter of 2020. That unusually high activity in 2019 caused the utilities sector to post the largest percentage decline of 63.0% in the second quarter of 2020.

“Some sectors fared well during the second quarter. Retail trade posted substantial growth, increasing by $135 million, nearly an 8% gain,” Rauschenberger added that purchases North Dakotans made over the internet contributed to the retail trade growth, especially during the period when many stores faced mandatory shutdowns. The education, health care, and social services sector also grew significantly, as each of these subsectors dealt with virus-related demands.

Percent changes for the second quarter of 2020 (compared to the second quarter of 2019) for the top four largest cities in North Dakota were as follows:

  • Fargo – Decrease of 13.0%
  • Grand Forks – Decrease of 12.0%
  • Minot – Decrease of 11.2%
  • Bismarck – Decrease of 8.2%

Of the 50 largest cities in North Dakota, the highest percentage of decreases for the second quarter of 2020 (compared to the second quarter of 2019) were as follows:

  • Watford City – Decrease of 60.3%
  • Williston – Decrease of 49.3%
  • Stanley – Decrease of 40.4%
  • Tioga – Decrease of 39.8%
  • New Town – Decrease of 39.7%

As a note, all five of these cities are located in the oil patch.

Counties with the highest percentage of decreases for the second quarter of 2020 (compared to the second quarter of 2019) were as follows:

  • Burke County – Decrease of 62.0%
  • McKenzie County – Decrease of 58.0%
  • Mountrail County – Decrease of 48.9%
  • Williams County – Decrease of 48.7%
  • Stark County – Decrease of 39.2%

The complete second quarter 2020 North Dakota Sales & Use Tax Statistical Report can be accessed online at www.nd.gov/tax.

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North Dakota: Legendary. Follow the trail of legends

Ryan Rauschenberger
Tax Commissioner
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News

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Tax Commissioner Reports Over 22% Decline in 2nd Quarter Taxable Sales and Purchases

Bismarck, N.D. – Tax Commissioner Ryan Rauschenberger announced today that North Dakota’s taxable sales and purchases for the second quarter of 2020 are down 22.5% compared to the same timeframe in 2019. Taxable sales and purchases for April, May, and June of 2020 were $4.34 billion.

“The significant decline in taxable sales and purchases during the second quarter is the result of a combination of temporary coronavirus related shutdowns and slumping oil prices,” Rauschenberger said. “This quarter included the weeks during which Governor Burgum had mandated certain nonessential business closures.” 

Twelve of the 15 major sectors reported taxable sales and purchases declines when compared to the second quarter last year. Most notably, the mining and oil extraction sector decreased by $511 million (a 62.6% decrease) and the accommodation and food services sector decreased by $161 million (a 34.0% decrease). 

Rauschenberger noted that in the second quarter of 2019, the utilities sector was impacted by utility upgrades and a major storm, making that sector more unique in the second quarter of 2019, rather than the second quarter of 2020. That unusually high activity in 2019 caused the utilities sector to post the largest percentage decline of 63.0% in the second quarter of 2020.

“Some sectors fared well during the second quarter. Retail trade posted substantial growth, increasing by $135 million, nearly an 8% gain,” Rauschenberger added that purchases North Dakotans made over the internet contributed to the retail trade growth, especially during the period when many stores faced mandatory shutdowns. The education, health care, and social services sector also grew significantly, as each of these subsectors dealt with virus-related demands.

Percent changes for the second quarter of 2020 (compared to the second quarter of 2019) for the top four largest cities in North Dakota were as follows:

  • Fargo – Decrease of 13.0%
  • Grand Forks – Decrease of 12.0%
  • Minot – Decrease of 11.2%
  • Bismarck – Decrease of 8.2%

Of the 50 largest cities in North Dakota, the highest percentage of decreases for the second quarter of 2020 (compared to the second quarter of 2019) were as follows:

  • Watford City – Decrease of 60.3%
  • Williston – Decrease of 49.3%
  • Stanley – Decrease of 40.4%
  • Tioga – Decrease of 39.8%
  • New Town – Decrease of 39.7%

As a note, all five of these cities are located in the oil patch.

Counties with the highest percentage of decreases for the second quarter of 2020 (compared to the second quarter of 2019) were as follows:

  • Burke County – Decrease of 62.0%
  • McKenzie County – Decrease of 58.0%
  • Mountrail County – Decrease of 48.9%
  • Williams County – Decrease of 48.7%
  • Stark County – Decrease of 39.2%

The complete second quarter 2020 North Dakota Sales & Use Tax Statistical Report can be accessed online at www.nd.gov/tax.

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