McKenzie County sees increased sales tax activity in 2025
Steve Hallstrom
Special to The Farmer
The unique blend of a steady oil-driven economy with diversified retail growth is paying dividends for McKenzie County’s sales tax revenue, according to Daniel Stenberg, the county’s Economic Development Director for the past eight and a half years.
Stenberg tells the Farmer that the community has been able to retain its small town feel as the wild swings of the early oil rush have given way to a more stable rhythm.
“McKenzie County has just been, for the past decade and a half, a place with a lot of opportunities that have come with population growth because of petroleum development, and so there are a lot of opportunities that have come our way and needs for people to add their services here. And so, at the Economic Development Office, we seek to help matchmake opportunities with the people that can help make it happen.”
This matchmaking role has been crucial as McKenzie County shapes its post-boom identity. Once ground zero for a frenzied rush that drew workers from across the nation, the county is now driven by a mission to create steady progress in housing, childcare, retail, and community events.
Recent data underscores the challenge.
McKenzie County’s population has surged dramatically over the last two decades, reflecting the continued presence of oil and gas development. According to U.S. Census Bureau estimates, McKenzie County’s population stood at just 5,737 in 2000, a modest figure for a rural county spanning over 2,800 square miles. By 2010, as the Bakken’s oil reserves opened up with advances in horizontal drilling and fracking, the count had climbed to 6,360 - an 11 percent increase in that decade alone. The real explosion came between 2010 and 2020, when the population more than doubled to 14,704, marking a staggering 131.2 percent growth rate that made McKenzie the fastest-growing county in the United States, per Census Bureau data.
This boom was largely attributed to the influx of oilfield workers and their families, which transformed Watford City, the county seat, into a regional hub of economic and population activity.
By 2023, the population had reached 14,252, with estimates projecting 14,978 by the end of 2025 - a continued annual growth rate of about 2.48 percent, according to a World Population Review analysis of Census figures. Even as oil prices fluctuated, the county added 500 residents between 2023 and 2024 alone, a 3.5 percent increase that outpaced most North Dakota regions.
Sales tax collections and retail expansion have enjoyed the ride, as the oil and gas industry jumpstarted this rural ag-based economy.
The North Dakota Office of State Tax Commissioner reports that statewide sales and use tax collections began accelerating around 2004 with the onset of oil activity, but McKenzie saw explosive growth. By the fourth quarter of 2014, at the height of the boom, county taxable sales jumped 54.61 percent year-over-year, second to only Dunn County’s 80.62 percent increase. This translated to statewide collections hitting $7.9 billion for that quarter, a 16.7 percent rise, with McKenzie County’s drilling and support-system sectors leading the charge.
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