North Dakota’s Taxable Sales Figures Jump

Great news….

BISMARCK, N.D. – North Dakota’s taxable sales and purchases totaled $2 billion during January, February and March, a 12.5 percent jump from the same three-month period the year before, the state Tax Department reported.
Retail trade, which accounts for the largest share of the state’s taxable sales, rose 7.4 percent, to $806.9 million, during the three months. Wholesale trade increased by 23.5 percent, to $326.5 million, the department reported Monday.
“Even with high gas prices at the pump, and rising interest rates, consumer spending remained strong,” Tax Commissioner Cory Fong said. The report represents the first time that first-quarter taxable sales and purchases exceeded $2 billion, he said.
Accommodation and food services, a measurement of North Dakota’s convention and tourist trade, rose 7.6 percent, to $221.8 million, during January, February and March.
“Even though we anticipated the strong economic momentum of 2005 to continue into this year, we are pleasantly surprised at this robust level,” Fong said.

Of course, the dry growing season in this agriculture-centric state isn’t going to help much:

Fong said the summer’s drought conditions in parts of North Dakota are likely to slow the economic expansion.
Agriculture is North Dakota’s largest industry, and “a downturn for our producers may have an effect on the other core sectors of our economy, depending upon the widespread severity and length of the drought,” the tax commissioner said.

The long-term impact of all this dry weather (if it has any impact at all) is yet to be seen, but if the state’s leaders want to see these economic boom times continue there is one thing they can do: Give the state’s budget surplus back to the taxpayers in the form of a refund/tax cut.
Putting this money back in the pockets of North Dakotans will mean, simply, that the money will be re-invested back in the state’s economy. Exactly what is needed to offset any possible stagnation brought on by drought.
On a related note, these figures from the end of the article re-emphasize a point I made about in-state tax revenues in an earlier post from back in April:

Among North Dakota’s four largest cities, Fargo had $413.1 million in taxable sales and purchases, an increase of 6.1 percent; Bismarck had $246 million, an increase of 13.7 percent; Grand Forks had $180.5 million, a 3.3 percent rise; and Minot had $138.2 million, an increase of 8.9 percent.

Grand Forks has a 1.75% sales tax.
Fargo has a 1.5% sales tax.
Minot has a 1% sales tax.
Bismarck also has a 1% sales tax.
Note that the cities with the two highest sales taxes experienced the slowest economic growth and smallest increase in tax revenues. Vice versa for the two lower sales tax cities.
See the point? Lower tax burdens means less burden on the economy of a city or state. North Dakota is seeing some economic boom times right now. The state’s unemployment numbers (3.3% as of May 2006) can’t really get any lower, and the indication from the information above is that North Dakotans feel like they have plenty of money to spend. Economically we, as a state, are right where we want to be.
The key now is staying there, and that’s going to take some pro-growth policies. That means lower tax burdens. Less money for government and more money for North Dakota citizens.