Cost of Doing Business

New construction (cost to build) - Office: $30-$42/square foot
New construction (cost to build) - Industrial: $24/square foot

Renovation (cost to renovate) - Office: $28-$42/square foot

Rental costs (using comparables) - Office: $1.35-$2/square foot
Rental costs (using comparable) - Retail: $1.15-$1.40/square foot
Rental costs (using comparable) - Industrial: $.10-$.30/square foot

Purchase costs (using comparables) - Land for commercial development: $10,000-$25,000/acre, depending on infrastructure development

Workers' Compensation

— Based on $ 24,700 payroll cap effective July 1, 2011
Average cost for all manufacturing per $ 100 payroll $ 4.68
Average cost for office workers ( 8805 ) 100 payroll $ .47
Maximum weekly benefit $ 853
North Dakota Workers Safety & Insurance


Unemployment Insurance

2011 taxable base $ 25,500
   
Percentage Rate
Average amount among all employers (based on 2005 total wages) 0.82 %
Average amount for new employers (non construction) 1.37 %
   
Maximum weekly benefit (revised each July 1) $ 442
Job Service North Dakota


Utilities

Electric Power Average Rates
Hillsboro Municipal Power
Standard commercial rate - general service

Customer charge

$12

Facility charge

52¢/kw of annual maximum demand (minimum 20 kw)

Average kilowatt an hour charge

7.8525¢

Demand charge

N/A

Additional charges

Additional kva charges may apply depending on connected load.
Contact Otter Tail Power Company for more information.
Water heating credit for standard general service

Direct control water heating credit

$4
Standard large commercial rate - large general service

Transmission service

Customer charge

$40

Facilities charge

$0.00/kw

Monthly minimum

Customer + facilities + demand charges
(min 80 kw)

Average kilowatt hour charge

First 700,000- 4.985¢
Excess- 4.583¢

Energy - excess kwh charge

N/A

Primary service

Customer charge

$40

Facilities charge

11¢/kw of annual max demand per month (min 80 kw)

Monthly minimum

Customer + facilities + demand charges

Average kilowatt hour charge

First 700,000- 5.118¢
Excess- 4.716¢

Secondary service

Customer charge

$40

Facilities charge

30¢/kw <1000 
15¢/kw >= 1000 per month (min 80)

Monthly minimum

Customer + facilities + demand charges

Average kilowatt hour charge

First 700,000- 5.14¢
Excess- 4.738¢

Energy - excess kwh charge

N/A
 
Natural Gas Rates
Montana-Dakota Utilities Company
Average Cost for Industrial Users $ .719/dk - plus cost of gas (2010 Avg was $ 5.395/dk)
Firm Contract Rates $ .597/dk - plus cost of gas (2010 Avg was $ 5.395/dk)
Interruptible Service Rates $ .719/dk - plus cost of gas ( 2010 Avg was $ 5.395/dk)
 
Telecommunications
Local Service Providers
Halstad Telephone Company Fiber service provided. Monitored remotely and onsite. 


Corporate Income Tax

Corporate Income Tax Rates 2.1% to 5.15%
North Dakota Office of State Tax Commissioner


Sales Tax

State sales tax 5.0 %
Local sales tax 2.0 %
Total sales tax 7.070 %
 

Sales tax rate by utility

Electric power Exempt
Fuel oil 23 cents per gallon
Water Exempt

Telephone sales tax rates (state and local combined)

Local area 5.0 %
Long distance in state 5.0 %
Long distance out of state Exempt
Machinery and equipment subject to sales/use tax
Industrial/manufacturing machinery Certain machinery for new and expanding industry is exempt
Office machinery Taxable
Pollution control – air Taxable
Pollution control – water Taxable
Office furniture/fixtures/equipment Taxable

Sales/use tax on

Computer and telecommunications equipment for a new primary sector business Exempt
Office building construction materials Taxable
Industrial building construction materials Manufacturing and ag co-op – Exempt
Non-manufacturing and non-ag – Taxable
Manufacturers’ raw materials Exempt
Canned software Taxable
Custom software Exempt
 
North Dakota Office of State Tax Commissioner


City Hall

Taxing District Mills
City Millage (includes park) 175.38
County Millage 109.51
School Millage 161.46
Special District Millage (State Medical) 1
Total Millage 447.35


Other Tax Info

No personal property tax.
No inventory tax.
No production tax.
Business tax incentives can be applied for and granted for corporate income tax and corporate property tax.