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In April, North Dakota saw a 500% increase in online sales tax revenue

(KFYR)
Published: Jun. 22, 2020 at 7:50 PM CDT
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In April, North Dakota saw a 500% increase in online sales tax revenue because more people were staying at home and shopping, according to North Dakota Tax Department officials.

North Dakota Tax Commissioner Ryan Rauschenberger said last year North Dakota took in half a million dollars in April, in 2020 that number has increased to almost three million.

Rauschenberger said one of the big questions facing the state moving forward, is how much will people continue to spend online throughout the rest of the year, instead of going out and spending money at their area retail shops.

Rauschenberger said, "Even though we as a state and the local governments may collect as much sales tax of that sales whether its online or at your local store, the big question is how much money is staying in our local economy."

Rauschenberger said they are watching to see if North Dakotans will continue to shop online or return to brick-and-mortar stores because those numbers have a multiplier-effect on the state’s economy.

Impacting things like employment, income taxes, and other sales tax types.

Rauschenberger said overall total sales tax revenue was down about 35% in April.