City's sales tax revenue hits new high

Sales tax collections continue to rise in the Central City. In 2022, the City of Carrington collected $943,828.37 in sales tax revenue, according to Auditor Jennifer Gast.

Although the increase is less than 1 percent, it still represents a new record high for the city. Carrington collected about $936,000 last year. See the chart at right that shows the trend over the past 5 years.

Sales tax dollars are separated into three funds: infrastructure, economic development and offset specials/debt service for the 2014 street project and water main replacement.

Half of the sales tax dollars, or 1 percent, are placed into fund 218 to offset specials and debt service from the 2014 street project and water main replacement, a total of $471,914.20 in 2022. dollars, or 1 percent, are placed into fund 218 to offset specials and debt service from the 2014 street project and water main replacement, a total of $471,914.20 in 2022.

The infrastructure fund received $114,922.76, which represents one-quarter of 1 percent. Economic development receives three-quarters of 1 percent, which totaled $356,991.41 last year.

The economic development arm of the city went through a significant restructuring this past year. When Karlee Griffin resigned as Economic Development Director in June, the board chose to outsource the Economic Development Director position to the newly-formed Carrington Chamber and Economic Development Corporation (CCEDC) and provide administrative funds. Laurie Dietz was named director of CCEDC this past fall.

This change makes money that would have been used to pay salary and health insurance in the past available for incentive programs, Dietz says.

There are several incentive programs available for individuals and businesses, depending on need. "Our board of directors is always evaluating the need and success of each incentive program to be sure the funds are used in ways that will assist our businesses, help Carrington grow and provide a healthy business environment," Dietz said.

She added that over the past year, nearly all of the city's Economic Development programs were utilized, including the First Time Home Buyers & New Build Housing Incentive, Business Development Loan/Grant, Childcare Provider Grant and the Demolition Cost Share Program, to name a few.

A full list of the programs available for 2023 are available on the city website, https://www.carringtonnd.com. A direct link to the CED Incentive Program page can be found in our online edition of this article at fosterconews.com.

All funds approved for programs and administrative use by the CCEDC board are approved by Carrington City Council.

Dietz added that the city's Main Street Revitalization Plan is nearly complete, and she anticipates changes to incentive programs and implementation of new ideas to come as a result, with both the strategic plan and the new Main Street plan in mind.

Of note is that while the total sales tax revenue increased, the city actually received less sales tax revenue from remote and online sellers than it did the prior year. Sales tax revenue from remote sellers totaled $72,762, in comparison to $87,612 in 2021. That means that residents of Carrington spent fewer dollars with online and remote sellers that collect sales tax last year.

Note that not every remote online seller is required to collect sales tax. North Dakota law includes an exception for small sellers. Sales tax collection by remote sellers is required only if their taxable sales into the state exceed $100,000 in the current or previous calendar year. Therefore, not all purchases from remote sellers are subject to sales tax.

Statewide, counties and cities collected nearly $26 million ($25,786,910) in sales tax revenue from remote sellers in 2022 alone. That is an increase of nearly $5 million, from $21,923,619 in 2021.