May, 2010
By Cory Fong
FOR IMMEDIATE RELEASE
Monday, May 10, 2010
Contact: Kathryn Strombeck, Research Analyst, 701.328.3402
Beth Boustead, Public Information Specialist, 701.328.3039
BISMARCK, N.D. – Tax Commissioner Cory Fong today released a key report showing growth in taxable sales and purchases. During 2009, taxable sales and purchases were $11.743 billion, down 5.3 percent compared to 2008. Taxable sales and purchases are up when compared to 2007 statistics. The 2009 report shows growth of 14.9 percent or $1.518 billion compared to 2007.
“North Dakota experienced a record-setting year for taxable sales and purchases in 2008, and that level of growth was not sustainable,” said Fong. “When we compare 2009 to 2007, which is a more typical year, spending levels grew by nearly 15 percent, signaling that North Dakota’s economy remains healthy.”
Compared to 2008, seven of fifteen sectors reported growth during 2009. The information industries sector showed the strongest overall growth in terms of dollars, increasing by more than $26 million from 2008 or 4.3 percent.
The largest percentage increase came in the other services sector, which was up 8.8 percent. Other sectors that reported growth during 2009, include the information industries, up 4.3 percent; educational, health care, and social services, up 3.9 percent; professional, scientific, technical, and management services, up 3.4 percent; financial, insurance, real estate, rental and leasing, up 3 percent; and accommodation and food services, up 2.3 percent.
Two sectors remained relatively flat – arts, entertainment and recreation grew 0.1 percent; and retail trade was down less than one percent. Comparing the 2009 retail trade sector to the 2007 retail trade shows a growth of five percent.
“The retail sector is often used as a measure of the overall health of the economy,” said Fong. “Even with the events at the national level creating a level of economic uncertainty, in North Dakota our retail sector remained relatively solid. Comparisons to a more normal year, such as 2007, show that retail trade was up five percent in 2009.”
Sectors reporting a decline in 2009 compared to 2008, include: transportation and warehousing, down 42.5 percent; mining and oil extraction sector, down 25.9 percent; utilities, down 16.8 percent; wholesale trade, down 8.6 percent; miscellaneous, down 8.4 percent; manufacturing, down 7 percent; and construction, down 3.9 percent.
“North Dakota’s agricultural producers are the backbone of our economy,” said Fong. “During 2009, producers were dealing with the aftermath of spring storms and flooding on top of persistent high input costs, and a slowdown in commodity prices.”
The annual report includes statistics for the largest 200 cities in the state, of which 112 cities reported increases and 88 reported decreases compared to 2008.
The largest four cities–Bismarck, Fargo, Grand Forks, and Minot–reported taxable sales and purchases of $5.278 billion. Of the 200 cities, Galesburg led the growth of all cities with an increase of 463 percent growth over 2008. Starkweather was next, increasing by 115.7 percent; Hazelton was up 51.1 percent, Stanton grew by 47.6 percent and South Heart was up 45.6 percent.
Cities reporting the steepest decline compared to 2008 include Belfield, down 82.3 percent, Tower City down 45.5 percent, Lignite down 43.6 percent, Hunter decreased 41.5 percent, and Halliday was down 40.4 percent.
Included in the 2009 report are statistics for each of the state’s 53 counties. Oliver County led all counties with increases in 2009, with a 33.6 percent growth over 2008. Logan County was next, increasing by 17.6 percent; Mountrail County was up 17 percent; Bowman County was up by 14.3 percent; and Pierce County up by 14.2 percent. The counties recording the sharpest decline were Burke County down 35.7 percent; followed by Dunn County down 19.7 percent; Renville County down 18.8 percent; Sargent County down 18.7 percent; and Walsh County down 16 percent.
The Sales and Use Tax Statistical Report is used primarily as a summary of economic activity that occurred in the state. The North Dakota Sales and Use Tax Statistical Reports from – 2009 Annual Statistical report are available on the Tax Department’s web site at: www.nd.gov/tax/salesanduse/pubs/.
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Filed in: Uncategorized
By Cory Fong
FOR IMMEDIATE RELEASE
Friday, April 30, 2010
Contact: Beth Boustead
Public Information Specialist
701.328.3039
BISMARCK, N.D. – Tax Commissioner Cory Fong today reported that 75 percent of North Dakota’s individual income taxpayers filed electronically during the 2010 tax season, and at a faster and stronger pace this year compared to prior years.
“As the filing season progresses, we typically see a narrowing in the percentage of e-file compared to paper,” said Fong. “This year was different – during the seven days leading up to the April 15 deadline, there was a surge in electronic filing among the last minute filers.”
From April 9 through April 16, the department received 38,987 e-filed returns and 10,639 paper returns. As of April 23, 230,784 individual income tax returns were filed electronically, for a 12 percent increase over the same time last season. And, this season’s number of e-filed returns is ahead of the total number of e-file returns for all of 2009. For the 2009 season, 222,254 returns were filed electronically. During the 2010 season, taxpayers filed 78,271 paper returns for a total 309,055 paper and e-filed returns through April 23.
The strongest increase in e-filers came in the 30 and under age group, for an increase of 8.5 percent of e-file compared to last year. The second fastest growing group was the 51-70 year-old filers with an increase in e-file of 4.4 percent.
Fong said, “Taxpayers were filing earlier this year, probably because they were expecting a refund and they wanted their refund sooner rather than later.”
As of April 23, the Tax Department had issued 193,013 refunds. Of that, 122,414 were direct deposit compared to 110,876 last year – a 10 percent increase in direct deposit. The average refund was more this year than last year – $286 compared to $283 last year.
New this year was a state-only WebFile option to the Tax Department system. The Tax Department also implemented a new interactive tool for taxpayers to use to guide them to an online e-file service.
“We added the WebFile feature to accommodate those tax filers who had already filed their federal return, in many cases electronically, and were looking for an electronic method of filing their state return,” said Fong. “We also implemented a new interactive online tool. With the many different e-file companies available to taxpayers, we felt that some taxpayers have missed out on the Free File option in the past because they have been unsure which free offering works best for them. We created the interactive tool to help them wade through the free offers and identify which company might work best for them.”
The new tool helps taxpayers identify which method to use – Free File, IRS E-File, or WebFile. According to the Department web site statistics, the online tool was viewed almost 54,000 times.
For more information about the Tax Department, visit their web site at www.nd.gov/tax/or follow them on Facebook.
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By Cory Fong
FOR IMMEDIATE RELEASE
Thursday, April 29, 2010
Contact: Beth Boustead
Public Information Specialist
701.328.3039
BISMARCK, N.D. – State Tax Commissioner Cory Fong today reminded low-income senior citizens and disabled persons that live in North Dakota that the deadline to apply for the Renter’s Refund is quickly approaching. The deadline is typically May 31, however because the deadline falls on Memorial Day, the applications need to be submitted by Tuesday, June 1.
“The Renter’s Refund is an important program and it provides assistance to those who need it most – our low-income senior citizens and disabled persons,” said Fong.
The Renter’s Refund is a program for low-income senior citizens and disabled persons to receive a refund for part of the money they paid as rent for their home or apartment.
“The renter’s refund program has been in place for a long time and many low-income senior citizens and elderly and disabled individuals who live on a fixed income rely on it,” said Fong. “This year we expect more applicants will qualify because the income limit and the maximum refund were both increased.”
The Tax Department administers the Renter’s Refund program. To qualify for the program, renters must be 65 or older or permanently and totally disabled and the renter’s 2009 income cannot exceed $26,000, an increase from the old income limit of $17,500. In addition to the increase in allowable income, the maximum amount of refund was increased this year to $400, up from $240 of prior years.
“Because of the increases in the income limit and the refund amount, more applicants might qualify,” said Fong. “It’s important that we get the word out about the June 1 deadline so everyone who is eligible has enough time to apply for the refund.”
If 20 percent of the total amount of rent paid is more than four percent of their 2009 income, they could be eligible for a refund. The maximum refund amount is $400. For example, if a renter pays $450 per month in rent ($5,400 per year) and the renter’s income is $18,000, twenty percent of $5,400 is $1,080, and four percent of $18,000 is $720. The amount that the renter is entitled equals $360 ($1,080 minus $720).
Fong encourages people who think they may qualify to call the Tax Department in Bismarck at 701.328.3127 or 877.328.7088 option 6, for more information and for an application. The application form is also available on the Tax Department web site at www.nd.gov/tax/property/forms/applicationforseniorcitizensdisabledrenters.pdf.
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