Posted 4/04/17 (Tue)
By Neal A. Shipman
The slowdown in oil activity in western North Dakota, as well as low agriculture commodity prices continue to have a negative impact on taxable sales and purchases across North Dakota.
After setting an all-time record in 2014, taxable sales and purchases in the state have continued on a downward spiral according to recent data from the North Dakota Tax Department. In 2015, the state saw sales drop by nearly 19 percent as oil prices plummeted from their highs of over $100 per barrel to lows in the $30s to mid-$40 range.
While oil prices rebounded slightly in 2016, the continued slowdown in oil activity along with a drop in ag commodity prices resulted in a 24 percent decline in taxable sales and purchases statewide in 2016.
“We anticipated that we would see a decline in taxable sales and purchases in 2016 as effects of the downturn in commodity-based industries persist,” stated Ryan Rauschenberger, state tax commissioner. “North Dakota taxable sales and purchases for calendar year 2016 are comparable to what taxable sales and purchases were in 2011. We continue to compare to the pre-oil boom timeframe to keep perspective.”
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