Bismarck- The North Dakota Tax Commissioner’s office recently released the taxable sales numbers for Q2 of 2016.
“The decrease in oil activity, coupled with low commodity prices continues to be reflected in the taxable sales and purchases report,” stated North Dakota State Tax Commission Ryan Rauschenberger. “North Dakota taxable sales and purchases are still returning to pre-oil boom levels.”
The report showed an acceleration in the weakness in oil patch communities, with oil patch hub Williston dropping a staggering 54.55% year/year. Other smaller oil patch communities saw significant drops as well (Dickinson 34.06%, Stanley down 34.17%, Tioga down 34.92%, Watford City down 37.32%). These communities are heavily reliant on oil and gas and Agricultural production, both industries continued to be plagued by low prices in Q2. The oil and gas sector started to see some price relief in Q3, but any advances will likely remain muted until further price appreciation.
Even with the large drops, oil patch communities continue to see taxable sales numbers that are higher than comparable sized communities on the eastern side of the state.
Communities outside of the oil patch weren’t immune to the downturn either, Fargo and West Fargo both posted drops of 4.41% and 4.77% respectively.
Reflief to the oil and gas industry as well as to agricultural industry would be a welcomed sight for the state of North Dakota, especially the western part of the state.
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