Bismarck Tribune - North Dakota News - Number of N.D. millionaires jumps by 60

Number of N.D. millionaires jumps by 60

Nov 20, 2008 - 04:06:12 CST

By JAMES MacPHERSON
Associated Press Writer

The number of North Dakota "income millionaires" is growing, likely due to wealth gained from the state's oil patch, state and industry officials say.

The state Tax Department says the number of North Dakota taxpayers reporting adjusted gross income of more than $1 million rose from 339 in 2006 to 399 last year. In 2005, there were 266 income millionaires in North Dakota.

Tax Department analyst Kathy Strombeck said the jump in the number of North Dakotans with seven-figure income probably comes largely from royalties paid to mineral owners by oil companies.

"I certainly don't think they're stock market millionaires," she said Wednesday.

More telling numbers will come in 2009, with income reported for this year, Strombeck said. Oil activity in the state likely will spike the numbers, she said.

"2008 will be big," Strombeck said.

"I think she's right," said Ron Ness, president of the North Dakota Petroleum Council.

"Most of the production has really come on this year, and the prices have come on this year," Ness said. "Oil production has gone up 88 percent in North Dakota since 2005, and a lot of it has come on within the past year."

Strombeck said the average adjusted gross income in the state increased from $43,334 on 2006 returns to $48,590 on 2007 returns. The number of returns jumped from 339,000 to 347,000 during those years, and the reported income increased $14.6 billion to $16.8 billion, she said.

Ness said the oil industry has helped bump wages throughout the state and created hundreds of high-paying jobs. It also has a domino effect on other industries, he said.

"The making of millionaires is a great story, but the story about the higher wages and more jobs is a much better one," Ness said.

Ness said the "frantic pace" of the state's oil patch will face a "calming effect" in time, but he is reluctant to talk boom-bust.

"When oil goes up, nobody knows how high oil will go up, and when oil goes down, nobody knows how far it will go down," he said.

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Comments

Halatbis wrote on Nov 20, 2008 3:48 PM:

" Good for them! Some of that money will be re-invested in ND industry and business---this is called "boot-strap" where we do for ourselves what is best for ourselves.
ND is a good place to be. There will be an influx of new people coming in for the jobs; we need to be welcoming to them as they bring new ideas and enthusiasm, not to mention kids and talent. Some of these folks will be amazed that they can get to work or the grocery store, or the school, or the church in a matter of a few minutes--their day will become hassle free--something they won't realize until they are free of it. "

Internet Bully wrote on Nov 20, 2008 2:15 PM:

" Anyone have any land in the west they want to sell?? Preferably land with oil under it. "

ND Taxpayer wrote on Nov 20, 2008 12:35 PM:

" Hurray for all the new millionaires in ND. Maybe we will get some recognition from all the other states that say: Those poor people that live in ND and have to endure all that cold weather besides being poor. If it wasn't for ND, the rest of the USA would all be starving for food, not driving because of the high cost of gasoline, and maybe not having a warm house in the winter, and a cool one in the summer. "

KK wrote on Nov 20, 2008 10:39 AM:

" Good for ND! It's great to know that everyone can somehow, someday, strike it rich. Those people toiled on that land for years and got lucky with the oil. I hope they enjoy the money - they deserve it! "

PO3 wrote on Nov 20, 2008 9:58 AM:

" I'm not one of those millionaires boo hoo. But I like the fact that alot of those millionaires are people just like the rest of us were poor all their lives but lucked out on the Bakken. I say more power to them. "

Pie Eater wrote on Nov 20, 2008 8:51 AM:

" I say, "Drill, drill, drill... the wallets of these lucky enough to have gotten a slice of the pie." "

Question for anyone wrote on Nov 20, 2008 8:01 AM:

" Does anyone know where I can find the average income by county? TIA The average pay looks high for this area. "

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