Uncategorized
By Cory Fong
FOR IMMEDIATE RELEASE
Tuesday, October 11, 2010
Contact: Beth Boustead
Public Information Specialist
701.328.3039
BISMARCK, N.D. – Tax Commissioner Cory Fong today reminded taxpayers that October 15 is the deadline for thousands of individual taxpayers who requested an extension to file their 2009 tax returns.
“October 15 is an important deadline,” said Fong. And we want to be sure that taxpayers who received an extension to file are aware that they need to have their return filed by Friday.”
Over the next week, the Tax Department expects to receive about 9,000 returns from taxpayers who requested an extension to file their returns. So far this year the Tax Department has received nearly 240,000 individual income tax returns through e-file. Paper returns received by the Tax Department continue to decline, with less than 112,000 individual income tax returns filed on paper during 2010.
Fong encourages taxpayers, including those who received an extension, to e-file because it is faster and more accurate than filing a paper return.
“E-file is dominating the scene as the preferred method of filing an individual income tax return,” said Fong. “Taxpayers enjoy the convenience of e-file and have found it to be more accurate and faster than filing a paper return.”
Taxpayers can access tax forms, publications, and other information about e-file and Free File on the Tax Department’s web site at www.nd.gov/tax or by calling 701.328.7088. The Tax Department hours are Monday – Friday, 8:00 AM to 5:00 PM.
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Filed in: Uncategorized
By Cory Fong
FOR IMMEDIATE RELEASE
Wednesday, September 29, 2010
Contact: Kathryn Strombeck, Research Analyst, 701.328.3402
Beth Boustead, Public Information Specialist, 701.328.3039
FONG: North Dakota Report Reflects 2nd Quarter Growth
BISMARCK, N.D. – Tax Commissioner Cory Fong today released a key economic report that reflects a 14.6 percent growth in North Dakota’s taxable sales and purchases during the second quarter. According to the report, North Dakota’s taxable sales and purchases were $3.416 billion during the months of April, May, and June 2010 compared to $2.982 billion during the same months in 2009.
“This shows that North Dakota’s economy is continuing to grow,” said Fong. “These figures are very encouraging, especially when you consider the continued impact of the national economic recession on the majority of the states.”
Comparing the second quarter 2010 to second quarter 2009, the growth was fueled by the mining and oil extraction sector, which grew 98 percent.
“A strong and robust energy sector has been a key player in powering our state economy and lifting revenues,” said Fong. “And it has fueled the local economies throughout the western half of the state, filling hotels, motels, not to mention the cash registers for the local retailers, and creating demand for housing.”
Other sectors reporting growth include: transportation and warehousing, which grew 47.8 percent; wholesale trade grew 28.7 percent; financial, insurance, real estate, rental and leasing grew 27.1 percent; other services grew 12 percent; manufacturing grew 10.1 percent; professional, scientific, technical, and management services grew 9 percent; educational, health care, and social services grew 7.4 percent; retail trade grew 6.9 percent; accommodation and food services grew 5.7 percent; information industries grew 2.7 percent; and construction grew 1.8 percent.
“The retail trade sector typically gives a pretty good snapshot of what is going on with consumers and businesses,” said Fong. “Even though nationally consumer confidence is wavering, North Dakota continues to buck that trend as our retail trade sector grew at nearly seven percent and it came during a time of very little inflation.”
One sector, miscellaneous, remained relatively flat reporting a decline of less than one-tenth of one percent. And, two of fifteen sectors reported a decline in taxable sales and purchases: utilities sector was down 60.7 percent; and arts, entertainment and recreation sector dropped by 0.8 percent.
The drop in the utilities sector is due to a significant change that occurred effective July 1, 2009 at which time all natural gas sold in the state became exempt from sales and use taxes. This change in the taxable base accounted for the overall drop in sales from the second quarter of 2009, when natural gas was subject to a one percent statewide sales tax.
“We continue to look for ways in which the state can help strengthen and support our local communities and to strengthen consumers’ confidence in our state’s economy,” said Fong. “To that end, our focus remains on job creation and offering certainty for North Dakota’s businesses and consumers, especially in the area of sustaining the broad-based tax relief that’s been delivered during recent years.”
Of the 50 largest cities, the biggest percentage increases for second quarter 2010 were: Tioga, up 174 percent; Williston, up 87.5 percent; Lincoln, up 47.2 percent; Watford City, up 46 percent; and Bowman, up 31.7 percent.
Of the 50 largest cities, the biggest percentage of decreases during the second quarter 2010 were: Casselton, down 34.6 percent; Park River, down 32.1 percent; Hillsboro, down 22.9 percent; Northwood, down 21 percent; and Cooperstown, down 19 percent.
Counties with the highest percentage increases were: Burke County, up 110.2 percent; Williams County, up 97.8 percent; McKenzie County, up 50.8 percent; Stark County, up 31.8 percent; and Bowman County, up 29.3 percent.
The counties with the biggest percentage decreases were: Logan County, down 34.3 percent; Oliver County, down 26.1 percent; Grant County, down 16.8 percent; Griggs County, down 16.3 percent; and Emmons County, down 13 percent.
Complete North Dakota Sales and Use Tax Statistical Reports from Second Quarter 2010 can be accessed on the web at: www.nd.gov/tax/salesanduse/pubs/reports/2010-2-stat-report.pdf – (159kb pdf).
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Filed in: Uncategorized
By Cory Fong
FOR IMMEDIATE RELEASE
Tuesday, September 14, 2010
Contact: Beth Boustead
Public Information Specialist
701.328.3039
BISMARCK, N.D. – Tax Commissioner Cory Fong announced today that he is working with state legislators on legislation to address the anticipated impact of the expiration of the Bush tax cuts.
“We are preparing to introduce legislation during the 2011 legislative session to ensure North Dakota taxpayers are not subject to additional state income taxes that would result if certain provisions of the Bush tax cuts expire,” said Fong.
Currently, the standard deduction for married filers who file a joint return is twice that of the standard deduction for single filers, which creates parity between the two filing statuses. This provision, which eliminated some of the penalty associated with filing a married joint return, is set to expire unless Congress takes action to extend it. Should it expire, the standard deduction for married filers would once again penalize married filers who file a joint return.
“We’ve worked tirelessly in the last two legislative sessions to provide meaningful and substantive tax relief to our citizens, reducing the burden on our North Dakota families, businesses, and farmers and ranchers,” said Fong. “This is not the time to sit back and allow North Dakotans to be taxed any more just because of the action, or inaction, of Congress.”
According to Tax Department analysis, once the standard deduction provision for married filers expires, more than 83,000 North Dakota taxpayers would see an increase in their federal taxable income. The result would be an increase in their federal and state income taxes.
“The legislation we are working on aims to protect North Dakota taxpayers from paying more into the state coffers because of Washington’s actions,” said Representative Mike Nathe of Bismarck.
Senator Dwight Cook, Mandan, and Representative Wes Belter, Cass County, Chairmen of the Senate and House Finance and Taxation Committees, added that this legislation could also serve as a vehicle for other possible legislative changes that may be necessary to ensure that North Dakota taxpayers do not see increases in their state income taxes resulting from Congressional actions.
“There may be other legislative changes to consider, depending on what Congress does or doesn’t do,” said Cook.
“It’s important that we are prepared and have legislation ready to go that will safeguard our state’s taxpayers,” said Belter.
If Congress does not extend the standard deduction provision of the soon-to-expire Bush tax cuts, there is a direct impact on taxpayers’ state income tax liabilities and on the state’s tax revenues. Married couples filing joint returns could see an increase in their state income tax of up to $94 per year. The overall fiscal impact to the state would be an increase of approximately $6.7 million per biennium in additional tax revenue.
According to Fong, the group anticipates introducing legislation at the beginning of the 2011 legislative session.
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Filed in: Uncategorized
By Cory Fong
FOR IMMEDIATE RELEASE
Tuesday, July 13, 2010
Contact: Kathryn Strombeck, Research Analyst, 701.328.3402 or Beth Boustead, Public Information Specialist, 701.328.3039
BISMARCK, N.D. – Tax Commissioner Cory Fong announced today that North Dakota’s economy expanded at a moderate pace during the first quarter of 2010, which includes January, February, and March. According to the economic report, North Dakota’s first quarter total taxable sales and purchases were $2.607 billion, up $67 million from the first quarter 2009, for an increase of 2.65 percent.
“This is a good report, highlighting the fact that North Dakota’s economy strengthened compared to the same quarter in 2009,” said Fong. “It is very encouraging, especially since it came during a time of continued uncertainty and weakening in most other states’ economies.”
The construction sector showed the most growth, percentage-wise, rising 16 percent compared to the same quarter 2009. The retail trade sector, the sector most often looked to as a measure of consumer confidence, grew the most in dollars, growing $71 million. Other sectors showing gains include: professional, scientific, technical, and management services, up 13 percent; miscellaneous, up 12.6 percent; wholesale trade, up 10.8 percent; other services, up 9.6 percent; financial, insurance, real estate, rental and leasing, up 9.5 percent; retail trade, up 8.3 percent; accommodation and food services, up 5.7 percent; arts, entertainment and recreation, up 5.4 percent; information industries, up 2.9 percent; and mining and oil extraction, up 0.9 percent.
Fong said, “North Dakota has shown a resistance to the recession which was due in part to stability in several sectors, such as construction, retail and wholesale trade, as well as the expansion of oil drilling activity.”
Four sectors reported declines, including: utilities, down 71 percent; transportation and warehousing, down 20.3 percent; manufacturing, down 3.5 percent; and educational, health care, and social services down 1.3 percent.
“In the utilities sector, the main contributing factor to the declining numbers is the exemption from sales tax for natural gas used in heating and industrial purposes,” said Fong. “The effect of this exemption affects a number of sectors.”
Effective July 1, 2009, all natural gas sold in the state became exempt from sales and use taxes. This change in the taxable base is the primary factor behind the drop in sales from the first quarter of 2009, when natural gas was subject to a one percent statewide sales tax.
“Had natural gas remained taxable at one percent,” said Fong, “the rate of overall growth this quarter would have been nearly seven percent.”
Of the 50 largest cities, the biggest percentage increases for the first quarter of 2010 were Bowman, 64.8 percent; Washburn, up 36.3 percent; Langdon, up 37.7 percent; Lincoln, up by 33.3 percent; and Stanley, up 33 percent.
The biggest percentage first quarter decreases for the 50 largest cities were Northwood, down 26.5 percent; Crosby, down 15.1 percent; Linton, down 9.5 percent; Kenmare, down 3.8 percent; and Walhalla, down 0.8 percent.
Counties with the highest percentage increases were Renville, up 86.5 percent; Billings, up 74.8 percent; Grant, up 72.6 percent; Bowman, up 62.9 percent; and Cavalier, up 37.3 percent.
The counties with the biggest percentage decreases were Burke, down 31.9 percent; Slope, down 25 percent, Benson, down 17.1 percent; Divide, down 13.5 percent; and McHenry, down 10 percent.
The complete North Dakota Sales and Use Tax Statistical Report for First Quarter 2010 is available on the Tax Department’s web site at: www.nd.gov/tax/.
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Filed in: Uncategorized
By Cory Fong
FOR IMMEDIATE RELEASE
Tuesday, June 15, 2010
Contact: Beth Boustead, Public Information Specialist, 701.328.3039
BISMARCK, N.D. – Tax Commissioner Cory Fong announced today that June 30 is the last day eligible consumers may apply for a refund of the state fuel taxes they paid on gasoline/gasohol purchased during 2009. The refund is available to farmers, ranchers, industrial contractors, emergency medical services operations and certain Native Americans.
“The refund is one way certain individuals, such as farmers and ranchers, can get some relief from rising gas prices and tightening budgets,” said Fong.
State law provides for the motor vehicle fuel tax refund for certain consumers, such as farmers and ranchers, using fuel in agricultural machinery and equipment.
Fong said, “The state offers to refund part of the taxes paid by industrial consumers, farmers, and ranchers because their construction equipment, tractors, and combines generally don’t run on highways which means they don’t cause the wear and tear on the roads like passenger vehicles do.”
State gasoline or gasohol taxes paid on purchases made during 2009 are eligible for the refund. The deadline for applying for the refund is June 30, 2010.
“When consumers fill their gas tanks, the price they pay includes the state gas tax, which is intended to go toward the cost of highway maintenance,” said Fong.
Farmers and ranchers may receive a refund of 16 cents per gallon, and industrial consumers may request a refund of 22 and one-half cents per gallon for gasoline/gasohol purchased. Gasohol is a mixture of gasoline and ethanol, with the most common mixture of 90 percent gasoline and 10 percent ethanol.
Three different programs, including two agriculture-related programs, will receive a total of seven cents per gallon based on the refunds requested by agricultural producers.
Four cents goes to the agriculture research fund created by the 1997 Legislature.
The Agricultural Products Utilization Commission (APUC) receives two cents.
One cent is provided to the state ethanol production incentive fund.
If a refund is not requested, the tax will stay in the Highway Distribution Fund.
The refund program provided the agricultural research fund more than $235,000 and APUC received over $119,000 during fiscal year 2009. The Tax Department issued refunds of over $1.13 million dollars for more than 5.9 million gallons of motor fuel during fiscal year 2009. Over 6,400 fuel tax refunds were issued with the average refund over $174.00.
“The gas tax refund is an important program and we want to be sure that eligible consumers don’t miss the deadline to apply for it,” said Fong.
Native American consumers who are enrolled members of the Turtle Mountain Band of Chippewa may request a refund of 23 cents per gallon for gasoline or non-dyed diesel purchased on their reservation. Purchases by members of the Three Affiliated Tribes, Standing Rock Sioux, and Spirit Lake Tribes are not eligible because they pay a tribal tax.
Emergency medical services operations may request a refund of 23 cents per gallon for gas or non-dyed diesel and 8 cents per gallon of aviation fuel.
For more information on the motor fuel tax refund, visit the Tax Department’s web site at www.nd.gov/tax/ or call the Motor Fuels Taxes Section, at 701.328.3126.
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Filed in: Uncategorized
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