North Dakota sales tax is feeling not only the effects of the ongoing pandemic but also the drastic decrease in oil prices.
Going into 2020, the state’s tax commissioner was expecting a 5 to 6 percent increase in sales tax.
Once the pandemic began, that all changed and they were already anticipating a drastic drop.
But the state’s tax commissioner told KX that the almost 14 percent drop was actually less than what they predicted.
He also says the oil industry has played a role, as states like Bismarck and Fargo had less of a drop, oil cities like Williston saw almost a 40 percent decrease.
“We’re forecasting out now for the next two years and we do expect for the state and for local governments a bit of resurgence of sales tax, but at a reasonable growth rate,” explained Ryan Rauschenberger.
Rauschenberger says what did increase was the retail trade tax because more people are shopping online.