North Dakota Residents See Average Income Drop 5% on 2020 Tax Returns
Income tax returns for North Dakota residents showed a 5% drop in average income in fiscal year 2020, largely due to the COVID-19 pandemic, the Department of Taxation of Canada reported on Tuesday. the state.
Not only did reported income decline last year for all residents of North Dakota, but the number of filers has also declined. Gross income reported by North Dakotas fell 8.4% in 2020, while the number of filers also fell by more than 18,000 from the previous year, according to figures provided to The Associated Press .
Average adjusted gross income in North Dakota also fell almost 5%, from $ 65,829 in 2019 to $ 62,696 last year.
According to Kathy Strombeck, an analyst for the tax department, the 5% drop in average income is not as bad as the state had predicted.
“Given the COVID-related closures and negative oil price weeks, a 5% drop in average income per return is not as bad as we expected,” Strombeck said.
For more Associated Press reporting, see below.
North Dakota’s oil industry has helped raise wages statewide and created hundreds of well-paying jobs for more than a decade. It also affects other industries, including wholesale trade and manufacturing.
The numbers are still well above the numbers before the oil boom ten years ago. In 2006, there were 339,000 tax filers, with an adjusted average gross income of approximately $ 43,300.
North Dakota currently has about 18,500 job postings online, according to Job Service North Dakota. Governor Doug Burgum and other state officials often say the true number is closer to 30,000.
Although the state’s economy has been hit by a shortage of workers, a growing population and rebounding oil prices have helped keep tax revenues near record highs.
Oil prices are a key contributor to North Dakota’s wealth, and the state’s crude production has recovered somewhat from last summer’s lows, but is nowhere near the record 1.5 million barrels per day produced at the end of 2019.
North Dakota’s oil production was around 1.1 million barrels per day in September, the latest figures available.
North Dakota crude prices were 32 percent higher than the state’s tax revenue forecast. The state’s population is estimated at a record 779,000, which means it has grown 16% over the past decade.