(The Center Square) – North Dakota’s first quarter taxable sales and purchases are up 21.4% compared to last year, Tax Commissioner Brian Kroshus said Wednesday.
The state took in $5.7 billion in January, February and March, according to the latest data.
“We experienced significant year-over-year growth throughout 2022 in taxable sales and purchases,” Kroshus said. “That same is continuing into 2023, reflecting our strong state economy.”
The most significant increase is in the mining and oil extraction sector, which increased by $258 million, a 58.8% jump. Wholesale trade grew by 40.8%, a $420 million increase.
“North Dakota’s largest two industries, energy and agriculture, again led the way,” Kroshus said. “Both benefited 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.”
The only sector that dipped was professional, scientific, technical and management services. The sector decreased by 1%, according to the data.
Taxables sales also surged in North Dakota’s four largest cities, with Minot and Grand Forks seeing double-digit increases of more than 15%. Bismarck’s sales grew by 5.7%, and Fargo’s were up by 5.5%.
State lawmakers used the state’s economic growth as a reason to cut taxes. House Bill 1158 zeroed out the state’s bottom tax bracket. The top four brackets were combined into two brackets with lower rates. The changes are estimated to return more than $358 million to North Dakota taxpayers.
