North Dakota’s economic boom continues to drive a boom in tax revenues for the state. According to the latest numbers from the Office of Management and Budget released this morning, the state has seen a 63.6% in revenues biennium-to-date over the last biennium.
So far state revenues have increased nearly $1.7 billion over the last biennium, hitting a mark that’s more than $1.3 billion more than the legislature forecast at the end of the last legislative session in April of 2011.
From sales taxes alone, the state has seen a $835.7 million dollar increase (77%). Individual income tax collections have increased over $220 million (41%), corporate income tax collections are up nearly $113 million (66%) but oil is where we’re seeing the biggest increases.
Revenues from the oil production tax are up $130.7 million, a nearly 400% increase, while revenues for the extraction tax are up 256.7% with a nearly $98.3 million increase. Combined, total revenues from taxes on oil production and oil extraction is up 322%.
A lot of people assume that North Dakota is getting most of its revenue from taxes on the oil industry, but that’s not really the case. By far, most of the state’s revenue comes from the sales tax (nearly $2 billion so far this biennium) and the personal/corporate income taxes (roughly $1.034 billion to date).
The sales and corporate/personal income tax represent 67.5% of the state’s revenues. Obviously, the oil boom is boosting those revenues by quite a bit, but let’s remember that most of the tax burden in North Dakota is falling on those revenue streams.
Here’s the data: