Susan Sisk, director of the North Dakota Office of Management and Budget, presents budget guidelines for the 2025-27 biennium to state agency heads at the Capitol on May 9, 2024. (Michael Achterling/North Dakota Monitor)

By: Mary Steurer

BISMARCK, ND (North Dakota Monitor) – North Dakota collected 10% less corporate tax in fiscal year 2024 than in fiscal year 2023, according to the North Dakota Office of Management and Budget’s monthly revenue report.

Federal spending aimed at keeping Americans afloat during the COVID-19 pandemic led to record-high corporate profits in the fiscal year ending June 30, 2023. Revenues have declined since then, the report said.

In North Dakota, corporate tax revenues are largely driven by the energy industry, said Susan Sisk, director of the Office of Management and Budget, and the sector’s strength has helped cushion the pandemic-era decline in corporate profits.

“It’s remained pretty strong for us because oil prices are high, but we’re seeing a flattening from the highs we saw during the pandemic,” Sisk said.

Lawmakers expected a decline in corporate tax revenues when they passed their 2023-2025 budget last year.

Despite the decline in corporate tax revenues, revenues in fiscal year 2024 still exceeded the state’s expectations.

North Dakota collected $82 million more in corporate taxes – or 42 percent – than officials had estimated for the 2024 fiscal year. In total, the state collected about $277 million.

“I think the bill that passed was probably a little too conservative,” Sisk said.

The state estimates that North Dakota will collect about $194 million in corporate taxes in fiscal year 2025, roughly equal to the state’s revenue in fiscal year 2022.