Posted 7/06/17 (Thu)
By Neal A. Shipman
The rebound in oil activity in McKenzie County with increased drilling and well completions is resulting in an increase in taxable sales for the first time in over two years according to the latest taxable sales information released by the North Dakota Tax Department.
After seeing taxable sales and purchases top out at $360.6 million in McKenzie County, and just over $300 million in Watford City during 2014, area sales went into a downward spiral the last two years on the heels of low oil prices and the subsequent drop in drilling activity.
But, if the sales and purchases activity during the first quarter of 2017 is any indication, the county’s economy is beginning to recover.
During the first quarter of 2017, taxable sales and purchases in Watford City increased 9.96 percent from $32,678,505 to $35,934,811 from the first three months of 2016. McKenzie County’s sales were $41,640,538, an 11.26 percent increase during the first three months compared to $37,426,028 during the first quarter of 2016.
McKenzie County and Watford City’s reversal of sales activity runs completely opposite of statewide sales figures for the rest of the state. Overall, the state saw a five percent drop in first quarter sales from 2016 to 2017.
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