Growth in N.D. Tax Revenues Reflects Growing and Diversified Economy

North Dakota collected $1.106 billion in state government taxes in 1999, an increase of 2.6 percent from the $1.078 billion collected in 1998 according to the latest "Economic Brief" from the State Data Center at North Dakota State University.

"These increased revenues reflect the state’s growing and diversified economy," said Richard Rathge, director of the center. "Much of the growth can be credited to increased gross sales even at a time when agriculture is depressed." On average, total state tax revenue has increased 5.5 percent per year since 1989.

North Dakota tax collections from hunting and fishing licenses grew nearly 58 percent from $6.9 million to $10.9 million. Revenues from the death and gift tax grew 57 percent, from $4.7 million to $7.4 million. At the same time, collections from the severance tax dropped 17.4 percent, from $121.2 billion to $100.1 billion and revenues from tobacco sales declined 5.2 percent from $24.3 billion in 1998 to $23.0 billion in 1999.

Per capita tax revenue was $1,746 in 1999 ranking North Dakota 22nd in the nation. North Dakota ranked fourth in per capita revenue from severance taxes, fifth in per capita tax revenue from motor fuel sales, and sixth in per capita hunting and fishing license tax revenue. North Dakota ranked 41st in per capita individual income tax revenue.

Eight states accounted for nearly half of all state tax revenue in 1999 (CA, FL, IL, MI, NY, OH, PA, and TX).

Slightly more than 30 percent of the state tax revenue in North Dakota came from general sales and gross receipts taxes: an additional 28 percent came from selective sales taxes on items such as alcohol, tobacco, motor fuels, and amusement. Individual income tax represented 16 percent of state tax revenues while corporate net income tax accounted for an additional 9 percent. License taxes and other taxes rounded out the remaining state tax revenues for North Dakota.

State government tax collection data presented in the December issue of the "Economic Brief" are for state governments only. They should not be interpreted as state area data (state plus local government tax collections combined).

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Source: Richard Rathge, (701) 231-8621, richard_rathge@ndsu.nodak.edu
Editor: Tom Jirik, (701) 231-9629, tjirik@ndsuext.nodak.edu

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