Official Newspaper of Eddy County since 1883
Official Newspaper of Eddy County since 1883
North Dakota’s taxable sales and purchases for the first quarter of 2021 are down 9.9% compared to the same time frame in 2020, according to a report from the North Dakota Tax Commissioner, which was released Tuesday. Total taxable sales and purchases for January, February, and March of 2021 were $4.14 billion.
Eddy County and the City of New Rockford, however, rose above most other counties and cities, both realizing more than a 30% increase over last year. Eddy County reported the fourth largest increase among all counties in the state during the first quarter, while New Rockford posted the seventh highest increase among the largest 50 cities.
“Though the overall report shows a decline compared to the first quarter of 2020, the first quarter of 2021 shows substantial growth for many cities and counties.” Rauschenberger said.
Ten of the 15 major sectors are reporting taxable sales and purchases declines when compared to the first quarter last year. The most significant of the declines – those reported by the mining and oil extraction, as well as the wholesale sectors – can be attributed to the recent struggles in the oil industry. Last summer for a brief period, in the midst of pandemic closures, oil prices fell to all-time lows. In North Dakota, the industry is slowly returning to its pre-pandemic levels of production as stable oil prices return. The mining and oil extraction sector decreased by $428 million (a 58.9% decrease), and the wholesale trade sector decreased by $250 million (a 23.5% decrease), in the first quarter of 2021.
“The impacts of the global pandemic continue to affect the state’s economy,” stated Rauschenberger. “However, as pre-pandemic activity returns, taxable sales will also likely rebound to more normal levels. Early indications of the soundness of the North Dakota economy are reflected in the growth in the retail trade, transportation and warehousing sectors.”
Eddy County’s taxable sales and purchases increased from $1.8 million in the first quarter of 2020 to nearly $2.5 million in 2021, a 36.8% increase. The 2020 number was pre-pandemic, showing that the local economy is gaining strength in the midst of economic challenges faced by other communities.
New Rockford saw a jump of 31.37%, from $1,476,857 in 2020 to $1,940,155 in 2021.
According to another report by the State Tax Commissioner, the sales tax revenue the city generated from remote sellers totaled $10,839.88 during the first quarter, up from $9,117.98 during the same period last year. Remote sellers paid approximately 20% of the total sales tax revenue collected by the city in the first quarter of this year.
“There’s definitely been an increase,” Amanda Hegland, Executive Director for the New Rockford Area Betterment Corporation,” said Wednesday. “(Sales tax revenue) is the highest it’s been in at least 10 years.” The challenge for local businesses now is finding help, she noted. “So many people are hiring.”
Taxable sales and purchases in nearby Carrington were up 6.07%, for a total of $10,750,860. Foster County saw a modest 5.40% increase over last year during the first quarter. Meanwhile, Harvey’s taxable sales and purchases were flat, hovering just over $6 million in both 2020 and 2021. Wells County saw a 2.29% increase.
Counties with the highest percentage of increases for the first quarter of 2021 (compared to the first quarter of 2020) were as follows: Billings County – Increase of 58.2%; Golden Valley County – Increase of 47.0%; Nelson County – Increase of 37.1%; Eddy County – Increase of 36.8%; and Emmons County – Increase of 32.0%.
Of the 50 largest cities in North Dakota, the highest percentage of increases for the first quarter of 2021 (compared to the first quarter of 2020) were as follows: Park River – Increase of 79.3%; Linton – Increase of 51.0%; Northwood – Increase of 40.8%; Beach – Increase of 40.4%; and Mayville – Increase of 34.5%.
