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Taxable sales skyrocket; 'Oilfield headquarters' third in state for 2010

May 17, 2011
DAVE CALDWELL - Staff Writer (dcaldwell@minotdailynews.com) , Minot Daily News

Following record-setting quarters throughout the year, final 2010 figures show taxable sales and purchases skyrocketed throughout North Dakota's oil country.

Leading the charge was the city of Williston, which despite having only the ninth-largest population in the state posted the third-highest taxable sales and purchases figures, which totaled $1.34 billion.

Compared to 2009 figures, that represents growth of more than 97 percent but still leaves Williston around $900 million behind the state's largest city, Fargo, and about $45 million behind Bismarck.

Williston's strong economy is buoyed by its de facto status as "oilfield headquarters" for the northwest portion of the state.

The city is home to well over 350 oilfield service companies that make their living buying and selling to petroleum exploration, production and transportation companies.

And with more than 175 drilling rigs active as of Thursday coupled with petroleum prices at more than $90 per barrel, there seems to be no lull in business looming ahead for that portion of the city's economy.

Meanwhile, Minot also posted strong gains, with taxable sales and purchases reaching $1.07 billion, an 18.2 percent increase that can be at least partially attributed to an influx of population and business from the city's position on the eastern edge of the oil patch.

Elsewhere and in the lands in-between, Plaza saw a jump of almost 285 percent, while Tioga received a 125 percent boost.

Crosby, Killdeer, Mohall, New Town, Parshall, Plaza, Ray, Stanley, Tioga and Watford City all posted sizeable increases, among others.

In the southwest portion of the state, oil also bolstered the coffers of cities such as Belfield, Bowman and Dickinson.

Ward County overall saw a similar, 18-percent increase, with taxable sales reaching $1.12 billion, which like the city of Minot ranked fourth in the state. Williams County, which includes Williston as well as Tioga, notched a total of $1.61 billion, second in North Dakota only to Cass County's $2.53 billion.

For purposes of the studies, taxable sales are defined as gross sales minus nontaxable sales, which make up the figure businesses must remit sales tax on. Taxable purchases are taxable goods purchased by the businesses for their own use on which they did not pay sales tax to their suppliers.

Statewide, wholesale trade increased by more than $956 million, a 39.6 percent boost.

"A strong wholesale trade sector suggests that there was steady consumer demand on inventories and our suppliers continued to move products," said Cory Fong, state tax commissioner, in a press release. "This sector indicates growth in two important industries - agriculture and oil production."

Retail trade, the largest sector in terms of dollars, grew by 8.1 percent, or five times the rate of inflation.

"Retail trade is the sector often looked to as a measurement of the consumer's pocketbook," said Fong. "The growth in retail trade confirms that North Dakota consumer confidence remained strong throughout last year."

 
 

 

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