North Dakotans To Likely See 3rd Straight Year Of Falling Income

BISMARCK, ND — The reported gross income in North Dakota fell 7.6 percent last year and a severe summer drought probably means the state — already reeling from a prolonged slump in energy and agriculture prices — will see a third straight year of falling gross income averages, state tax officials said.

The average gross income for 2016 was $68,538, down almost $3,300 from the previous year, and more than $4,800 from the record set in 2014, data show.

Figures released to The Associated Press also showed the number of filers fell by more than 27,000 from the year before. A total of 477,344 returns were filed in 2016, down from about 504,703 in 2015, according to Tax Department analyst Kathy Strombeck.

The late filing deadline for tax returns was last week.

The decrease in income and the number of taxpayers the past two years was largely due to depressed agriculture and energy prices, Tax Commissioner Ryan Rauschenberger said. The drop in number of filers comes largely from oilfield workers who left the state.

An uptick in oil prices that has spurred some drilling in western North Dakota has been offset by one of the worst droughts to hit the state in decades. The drought put additional downward pressure on agriculture production and prices, Rauschenberger said.

The numbers are still well above the pre-oil boom numbers a decade ago. In 2006, there were 339,000 filers, with an average adjusted gross income of about $43,300.

"I think there will be some leveling off," Rauschenberger said of income tax revenue and filers. "Eventually we're going to see a turnover."

By JAMES MacPHERSON, Associated Press

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