Taxing Activities

By The Bakken Magazine Staff | June 24, 2013

The North Dakota Sales and Use Tax Statistical Report published by the N.D. Tax Department is used primarily “as a summary of the economic activity that occurs throughout the regions of the state,” according to the Tax Department. Based on the 2012 annual report, economic activity in the state is hectic. For all industries in the state, activity levels were 28.7 percent higher in 2012 than in 2011, reaching $25.291 billion last year. The mining and oil extraction industry continued to grow, generating $5.1 billion in taxable sales and taxable purchases in 2012, almost 45 percent higher than 2011 when the industry reached $3.56 billion. 

The effect of oil and gas extraction on every other industry in the state may not have been outlined in the Tax Department’s report, but the percentage change for almost every industry in the state seems to make a clear statement about the role of oil and gas on the state’s economy. Cory Fong, N.D. tax commissioner, said that increases in construction and the wholesale trade sectors reflect optimism of N.D. businesses. “That growth, coupled with the growth in retail trade, is good news for North Dakota and suggests that our consumers remained confident in our state’s economy,” he said. 

To generate the report, the Tax Department tracked growth in 200 N.D. cities. Four out of the top five cities showing major activity increases are located in or near the Bakken oil and gas play. New Town recorded growth of 117.4 percent, Columbus rose by 112.3 percent, Alexander grew by 110.2 percent and Glenburn rose by 94.6 percent.