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How will collection of state sales tax from online retailers affect ND revenue?

On-line retailers are facing an October first deadline to register with the state of North Dakota to start collecting state sales taxes.

North Dakota Tax Commissioner Ryan Rauschenberger said the first reflection of that will come in the taxable sales report for the fourth quarter of 2018. That won’t be available until 2019. Meanwhile, Rauschenberger had to come up with an estimate of tax collections from on-line sales, so that could be built into Gov. Doug Burgum’s executive budget recommendation, that will be given to state lawmakers in December.

"What we've added is $10 million for the first year of the next biennium, and $15 million for the second year," Rauschenberger said. "That's $25 million total for the 2019-2021 biennium."

Rauschenberger dod not make any estimate for the rest of the current biennium, which ends next June 30th.

"We want to have the data first," Rauschenberger said. He also said it's wise to make estimates on the conservative side.

"If we overshoot on that estimate and come in short, because something happens or Congress changes the law, tehre's a bit of risk there," Rauschenberger said. "We don't want another round of budget allotments."

Then-Gov. Jack Dalrymple had to use his budget allotment authority in 2016 because revenues came up short.

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