Bismarck, N.D. – Tax Commissioner Ryan Rauschenberger announced today that North Dakota’s taxable sales and purchases for the first quarter of 2021 are down 9.9% compared to the same timeframe in 2020. Taxable sales and purchases for January, February, and March of 2021 were $4.14 billion.

“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. “This is the first we’ve seen positive increases in taxable sales and purchases since the coronavirus pandemic hit the state.”

Ten of the 15 major sectors report 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 both 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 slowing 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 retail trade and transportation and warehousing sectors.”  

Percent changes for the first quarter of 2021 (compared to the first quarter of 2020) for the four largest cities in North Dakota were as follows:

• Fargo – Increase of 17.6%
• Bismarck – Increase of 11.3%
• Grand Forks – Increase of 10.5%
• Minot – Increase of 4.0%

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%
• Mayville – Increase of 34.5%

As a note, many cities located in the state’s oil patch, such as Willison, Dickinson, and Tioga, continue to report declines in the first quarter of 2021.

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%
• Emmons County – Increase of 32.0%

The complete first quarter 2021 North Dakota Sales & Use Tax Statistical Report can be accessed online at www.nd.gov/tax.

Taxpayers can stay up-to-date on North Dakota tax-related matters by visiting the Office of State Tax Commissioner’s website at www.nd.gov/tax or by connecting on Facebook, Twitter, or LinkedIn.

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