Several categories of state tax collections are well above forecast, thanks largely to the resurgence in the state’s oil industry.
The combination of higher oil prices and increased oil production has tax collections well ahead of the forecast made during the 2017 legislative session.
North Dakota oil producers received an average of $61.11 per barrel during the month of April, with near-record production of 1.22 million bbl/day.
Legislators forecast production at less than a million bbl/day at a price of $47.00/bbl, so tax collections for the month of June were 72% higher than predicted.
Corporate and personal income tax, motor vehicle excise tax and sales tax collections are also running ahead of the budget forecast.
The upside in the oil industry has been partially offset by lower commodity prices for grain and livestock. [Always something to complain about.]See 1Q18 taxable sales data here.
The surge in oil tax revenue, including a deposit of nearly $59 million in June, has pushed the state’s Legacy Fund balance to more than $5.5 billion.