North Dakota State University -- NDSU Agriculture Communication
7 Morrill Hall, Fargo ND, 58105-5655, Tel: 701-231-7881, Fax: 701-231-7044
agcomm@ndsuext.nodak.edu

January 23, 2003

North Dakota Income Tax Collections Among Nationís Lowest

According to the latest Economic Brief released by the North Dakota State Data Center at North Dakota State University, North Dakota state government revenue totaled $3.3 billion in 2000, with the largest proportion coming from taxes (35.6 percent). Specifically, the general sales tax accounted for 10 percent of all revenue.

Of states collecting an individual income tax, North Dakota had the third lowest amount in the nation. North Dakota collected $198 million in individual income taxes in 2000 ($309 per person), 6 percent of total revenue generated that year. Only Tennessee and New Hampshire collected less in individual income taxes ($32 and $53 per person, respectively).

State government expenditures in North Dakota totaled $2.9 billion in 2000, with the largest proportion (31 percent) going toward education. Per capita state government expenditures in North Dakota totaled $4,448.07 in 2000, ranking North Dakota 12th highest in the nation.

"States with low population density tend to have high per capita costs," said Richard Rathge, Director of the State Data Center. "In states such as those in the Upper Great Plains Region, it is costly to deliver services such as education, health, police and fire protection, or to maintain highways, parks, or recreation facilities when you have a very large geographic area to cover and few people.

Alaska ranked first in per capita expenditures with $10,544, Hawaii second with $5,449 and Delaware third with $5,371. Compared to other states in the nation, North Dakota spent the least amount per capita on corrections and the second to the lowest per capita amount on health. In contrast, North Dakota spent the second highest amount per capita on highways.

Data for this publication are from the State Government Finances Report published by the U.S. Census Bureau at http://www.census.gov/govs/www/state.html .

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

 

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