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Sales tax takes a large hike

By The Williston Herald
Published/Last Modified on Monday, October 22, 2007 11:42 AM CDT


Williston sales took another healthy hike in taxable sales and purchases in the second quarter of 2007, jumping from $84,846,936 in the same period of 2006 to $105,449,247 this period. Williston's 24.8 percent increase was paralleled by Williams County's 27.27 percent increase, according to a report recently released by North Dakota State Tax Commissioner Cory Fong.

Tioga reflected the highest increase among the state's cities, catapulting nearly 70 percent over the same quarter last year.

While New Town's taxable sales and purchases rose 24.28 percent, nearby Stanley's figures fell 5.07 percent.

Watford City's taxable sales increased 13.04 percent, and Crosby's figures decreased by almost 8 percent.

McKenzie County's taxable sales for the period climbed 11.33 percent. Mountrail County as a whole decreased .52 of a percent, Divide County fell 3.4 percent and Burke County fell .25 of a percent for the period. Fong announced total taxable sales and purchases made during April, May, and June 2007 were $2.555 billion, up by more than $183 million over the second quarter of 2006. The $183 million represents a 7.7 percent increase. The report comes against a backdrop of concerns about a slow-up in the national economy.

“During the second quarter, nationwide consumer confidence was a little skittish amid rumors of rising inflation and mortgage concerns,” said Commissioner Fong. “North Dakota’s growth was over two and one-half times the rate of inflation.”

Inflation was at 2.7 percent for the second quarter. Fourteen of the fifteen industries reported growth during the second quarter of 2007. Mining and oil extraction grew 135.6 percent when compared to second quarter 2006. Transportation and warehousing grew 51.3 percent; financial, insurance, real estate, rental and leasing grew 13 percent; professional, scientific, technical and management services grew 12.2 percent; information industries was up 11.7 percent; miscellaneous grew 10.5 percent; educational, health care, and social services increased by 10 percent; other services were up by 8.9 percent; wholesale trade grew 8.7 percent; accommodation and food services increased by 6.7 percent; manufacturing increased by 3.1 percent; retail trade grew by 2.2 percent; utilities grew by 1.9 percent; and construction grew by 1.7 percent. In relation to the growth in the dollars, the five sectors reporting the largest growth compared to second quarter 2006 include: mining and oil up by $55 million; wholesale trade grew by $38 million; retail trade grew by $22 million; accommodations and food services grew by $16 million; and information industries grew by $16 million.

The arts, entertainment and recreation sector was the only sector to report a decrease, dropping 1.5 percent when compared to the same quarter in 2006.

“This is a good report,” Fong said. “North Dakota continues to see growth in the majority of our industries, which points to the stability of North Dakota’s diverse economy.”

Of the 50 largest cities, other big increases in the second quarter of 2007 were in the double-digits with Lincoln, up 29.7 percent and Kenmare up 27.2 percent.

Other second quarter decreases for the 50 largest cities, were in Ashley, down 11 percent; Harvey, down 9.5 percent; and Lisbon, down 7.9 percent.

Counties experiencing the highest percentage second quarter increases were McLean, up 43.3 percent; Nelson, up 36.5 percent; Grant, up 33.4 percent; Oliver, up 31.3 percent; and Logan, up 24.9 percent.

The counties with the biggest percentage of decrease were Sheridan, down 26.3 percent; Sioux, down 18.8 percent; Sargent, down 18.2 percent; Kidder, down 15 percent; and Cavalier down 13.7 percent.

The complete North Dakota Sales and Use Tax Statistical Report is available online at: http://www.nd.gov/tax/salesanduse/pubs/reports/2007-2-stat-report.pdf. For more information or if you have questions about sales tax collections, please contact the Office of State Tax Commissioner at 701-328-3402.
 

Comments

    willistonres wrote on Oct 23, 2007 6:49 AM:

    " if sales tax revenue is so great how come our property tax is so high? montana does not have a sales tax and their property tax is much, much lower. "

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