Tax Commissioner Brian Kroshus announced today that North Dakota’s taxable sales and purchases for the third quarter of 2023 are up 5.5% compared to the same timeframe in 2022. Taxable sales and purchases for July, August and September of 2023 were $7.1 billion.
“After eight consecutive quarters of strong, double-digit growth, the most recent quarter suggests economic activity in the state is moderating,” said Tax Commissioner Brian Kroshus. “While overall results were still favorable, with most sectors showing increases over last year, gains weren’t as pronounced as in previous quarters.”
Twelve out of 15 major industry sectors reported taxable sales and purchases increases when compared to the third quarter of 2022. Most notably, the mining and oil extraction sector increased by $98.1 million (a 14.5% increase), and the utilities sector increased by $32.5 million (a 70.3% increase). Conversely, the construction sector posted a 4.6% decrease.
“The construction sector, an important indicator of economic health, experienced a modest decline this quarter, influenced in part by higher lending rates,” said Kroshus. “In the coming months, we’ll keep a watchful eye on other industry segments, to determine whether this was a temporary lull, or beginning of a broader slowing of the state’s economy.”
Percent changes for the third quarter of 2023 (compared to the third quarter of 2022) for the four largest cities in North Dakota were as follows:
• Bismarck – Increase of 0.1%
• Fargo – Decrease of 1.8%
• Grand Forks – Increase of 2.4%
• Minot – Increase of 4.8%
Of the 50 largest cities in North Dakota, the highest percentage of increases for the third quarter of 2023 (compared to the third quarter of 2022) were as follows:
• New Town – Increase 96.6%
• Hettinger – Increase 50.2%
• Belfield – Increase 43.5%
• Surrey – Increase 26.3%
• Hazen – Increase 24.4%
Counties with the highest percentage of increases for the third quarter of 2023 (compared to the third quarter of 2022) were as follows:
• Golden Valley County – Increase 50.6%
• Adams County – Increase 47.1%
• Mountrail County – Increase 42.2%
• Steele County – Increase 23.3%
• Oliver County – Increase 16.4%
The complete data for this quarter of 2023 North Dakota Sales and Use Tax Statistical Report can be accessed through an interactive Power BI report found at www.tax.nd.gov/data.
Taxpayers can stay up-to-date on North Dakota tax-related matters by visiting the Office of State Tax Commissioner’s website at tax.nd.gov or connecting on Facebook, Instagram, LinkedIn or Twitter.