BISMARCK -- Taxable sales and purchases in North Dakota were up 1.7 percent in the second quarter of the year, with the biggest gains coming in construction and mining-oil.
The increase is in comparison to last year's second quarter sales.
Tax Commissioner Rick Clayburgh said the April- June report is encouraging because it shows a stable economy.
West Fargo's taxable sales showed the second-biggest jump among the state's 50 largest cities, 18.3 percent. Among counties, Traill County had the biggest jump, 40 percent.
Fargo's total taxable sales were up 3.17 percent, Bismarck 11.86 and Grand Forks 5.24.
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Mining and oil sales were up more than 19 percent and construction grew by 7.1 percent.
Retail, the sector that brings in the most sales taxes, showed a jump of 6 percent statewide and even more in the three largest cities. Retail taxable sales jumped in Fargo, by 8.17 percent, Bismarck 9.34 percent and Grand Forks 9.11 percent.
Sectors that showed declines were in transportation-communications-public utilities, manufacturing and wholesale trade.
Since January 2001, quarterly taxable sales have risen during five of the quarters when compared to the similar period of the previous year. The decline was in the first quarter of this year.
Quarterly analyses of taxable sales and purchases are different from monthly revenue reports that state officials watch to gauge whether the state has enough money to operate, though higher sales translate into more sales tax revenue for the state treasury.
The state Office of Management and Budget's latest reports show sales taxes slightly off expectations. So far in the two-year budget period that started on July 1, 2001, the state has taken in two-tenths of a percent less than expected from taxable sales, or $664,500.
But those expectations have been lowered twice since the Legislature went home in April 2001. The forecast being used now is the one that presumes the state is taking in $50 million less in total revenue than what legislators expected when they adjourned a year and a half ago.
OMB compares revenues in two-year increments. Its latest monthly revenue reports, for June, July, and August, show sales tax revenue varied widely from the corresponding months two years ago.
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August was down 18 percent compared to August of 2000, up 35.6 percent this July compared to 2000 and down 11.7 percent in June compared to June 2000.
Readers can reach Forum reporter Janell Cole at (701) 224-0830
