North Dakota – Tax Revenue from Online Sales Skyrockets Amid COVID-19 Closures

North Dakota’s sales tax revenue from online retailers ballooned by a staggering 500% in April, during the worst of the pandemic closures, according to the state tax commissioner’s office.

Remote sellers, or online retailers, contributed $2.9 million in sales tax revenue in April 2020, compared to $475,000 in April 2019. This mass migration toward online shopping came as many brick-and-mortar stores closed their doors during the coronavirus pandemic.

But as online retail surges in North Dakota, business owners are left to wonder whether the coronavirus will accelerate the decline of brick-and-mortar stores. Total sales tax revenue dipped considerably during the heights of pandemic closures, coming in at 35% below pre-pandemic forecasts for the month of April.

Compared to other states during the pandemic, the shift toward online retail seems to have been especially dramatic in North Dakota. The jump in e-commerce sales tax for nearby Wisconsin was just 133% in April.

For more information: Grand Forks Herald

Grand Forks Herald
by adam willis
june 22, 2020