What do out-of-state companies pay in sales/income taxes?

Dear Teri,

How many out-of-state companies pay North Dakota income tax and sales tax, what is the percentage compared to the in-state payers and what is the dollar value of income tax and sales tax collected from out-of-state companies?

Susan Beehler

Mandan

Thanks for writing! Here’s what Tax Commissioner Cory Fong said:

“Thank you for your questions regarding out-of-state companies paying income and sales taxes in our state.

“In response to the income tax portion of the question, there were a total of 3,970 corporations that collectively paid $111,276,282 in state corporation income tax for tax year 2010.

“Of this total, there were 1,912 out-of-state corporations that paid $66,811,482 in state corporate income tax. Out-of-state corporations are those that have less than half of their property, payroll and sales from North Dakota sources.

“In response to the sales tax side of the question, in the first three quarters of 2011 there were 21,796 sales tax permit-holders, remitting a total of $676,645,444 in sales tax for those three quarters.

“Of those, 5,982 were out-of-state and collectively they remitted $173,132,798 in sales tax for those three quarters. Please note that the data for the fourth quarter 2011 has not yet been finalized.

“Again, thank you for the opportunity to respond to your questions.”

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