Taxable sales up statewide, down locally

One sign of economic health in the state is overall positive. North Dakota's taxable sales and purchases for the first quarter of 2022 were up 13.2 percent compared to the same timeframe in 2021, according to a recent report from State Tax Commissioner Brian Kroshus. Taxable sales and purchases for January, February, and March of 2022 totaled $4.7 billion.

"It's encouraging to see continued growth in taxable sales and purchases for the beginning of 2022, a reflection of buying activity by consumers and businesses across the state," Kroshus said. "This is the fourth quarter in a row that the state has experienced an increase in taxable sales and purchases, since the decline due to the pandemic."

Locally, it was a bit of a different story, however. In Foster County, first quarter taxable sales and purchases were down 17.87 percent, for a total of $8,986,074. Last year the first quarter total was $10,941,279.

The City of Carrington had similar results, and realized an 18.88 percent decrease in taxable sales and purchases compared to last year. The city sales tax collected from remote and online sellers was also down. The city collected $15,950 from such entities during the first quarter, the lowest total since the fourth quarter of 2020.

Neighboring Eddy County saw a 21.11 percent decrease in first quarter taxable sales and purchase, compared to last year. This year, the total was $1,990,701, compared to $2,523,543 in 2021.

New Rockford's taxable sales were a bit more stable, although down 6.72 percent overall. The first quarter total was $1,852,824, or $133,459 less than the same time period last year.

The City of New Rockford collected $11,961 in sales tax from remote and online sellers, 9 percent more than last year's first quarter.

Statewide, all of the 15 major industry sectors reported taxable sales and purchases increases when compared to the first quarter of 2021. Most notably, the mining and oil extraction sector increased by $118.1 million (a 37.1 percent increase) and the wholesale trade sector increased by $227.2 million (a 27.5 percent increase).

"It is rare to see an increase in every major industry sector," stated Kroshus. "With all of the industries showing growth, the overall economy is moving in a positive direction – demonstrating the underlying strength of North Dakota's well-rounded economy."

The complete data for the first quarter 2022 North Dakota Sales and Use Tax Statistical Report can be accessed through an interactive Power BI report found at www.tax.nd.gov/data.