The Official Newspaper for Foster County
The Official Newspaper for Foster County
One of the signs of a healthy economy is an increase in taxable sales and purchases. According to Tax Commissioner Brian Kroshus, North Dakota’s taxable sales and purchases for the first quarter of 2023 totaled $5.7 billion, an increase of 21.4 percent compared to the same time frame in 2022.
“We experienced significant year-over-year growth throughout 2022 in taxable sales and purchases. That same growth is continuing into 2023, reflecting our strong state economy,” said Kroshus.
Locally, the City of Carrington saw an increase of nearly 40 percent, with a total of $12,201,604 in taxable sales and purchases reported in the first quarter. The first quarter total for 2022 was just over $8.7 million.
As usual, sales and purchases in Carrington represented the vast majority for Foster County, which had a total of $12,344,708 in the first quarter. This was an increase of 37.6 percent over the same period last year, when taxable sales and purchases totaled $8,972,179.
Harvey posted one of the top five increases by percentage among the 50 largest cities, with an increase of 58.4 percent compared to the first quarter last year. The largest city in adjacent Wells County generated over $3 million dollars more in taxable sales and purchases than last year. Wells County overall had an increase of 55.3 percent, a total of $10,150,359 in the first quarter.
Carrington’s neighbor to the north, on the other hand, went in the other direction. New Rockford was down nearly 10 percent compared to last year, with a total of $1,673,456 in taxable sales and purchases. ($1,852,824)
Despite New Rockford’s negative report, Eddy County’s first quarter taxable sales and purchases were relatively flat compared to last year. The total was $1,969,825, down a mere 1 percent from $1,990,701 in 2022.
Griggs County saw a modest increase of 6.9 percent, with a total of $3,462,477 in first quarter taxable sales and purchases.
The other measure of interest to locals is the tax paid by remote and online sellers, which are companies headquartered outside of the city who sell to Carrington residents.
Overall, Carrington city sales tax collected by remote sellers increased nearly 50 percent over last year, even more so than in-county taxable sales. Carrington residents and businesses spent at least $1.2 million with remote and online sellers in the first quarter of this year. That number is surely higher, as many remote sellers are not required to collect sales tax in North Dakota.
Carrington city sales tax collected and reported by remote sellers totaled $24,676 in the first quarter and $19,351 so far in the second quarter, according to N.D. Tax Department statistics. With sales tax reports for the second quarter due on Aug. 1, that second quarter total is sure to rise.
Nearly all industry sectors saw increases
According to Kroshus, 14 out of 15 major industry sectors reported increases in taxable sales and purchases compared to the first quarter of 2022.
Most notably, the mining and oil extraction sector increased by $258 million and the wholesale trade sector increased by $429 million over last year.
“North Dakota’s largest two industries, energy and agriculture, again led the way. Both benefitted from favorable commodity pricing during the first quarter. Associated sales tax collections influenced by those sectors, were also a factor in the state’s eighth consecutive quarter of growth,” said Kroshus.
Percent changes for the first quarter of 2023 (compared to the first quarter of 2022) for the four largest cities in North Dakota were as follows:
Other cities posting large increases include New Town (148.7 percent increase), Hazen (134.8 percent), Crosby and Hillsboro. Of the four largest, Minot recorded the largest increase. The Magic City was up 15.5 percent over last year.
The complete data for the first quarter of 2023 North Dakota Sales and Use Tax Statistical Report can be accessed through an interactive Power BI report found at http://www.tax.nd.gov/data.
