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North Dakota July Local Sales and Use Tax Rate Changes

The North Dakota Office of State Tax Commissioner has released a notice listing the local option tax changes effective July 1, 2012.

Fargo – an existing one-half percent (0.5%) city tax will sunset effective June 30, 2012. As of July 1, 2012, “…the Fargo city sales, use, and gross receipts tax will be one and one half percent (1.5%).

Surrey – “The city of Surrey will impose a city sales, use, and gross receipts tax of two percent (2%) effective July 1, 2012.” Details regarding the newly imposed tax can be found here…

Caps and Refunds

According to the tax notice, “Prior to October 2005, most local sales taxes included a maximum tax provision (now also known as a refund cap). This was a maximum amount of tax that could apply to a single transaction.” That program was replaced by a refund program where retailers charged the full sales tax on each transaction and the purchaser “…could apply to the Tax Commissioner for a refund of any tax paid in excess of the cap.”

In July of 2007, that program was modified so that retailers could opt to “…collect up to the cap amount as a convenience to their customers so the purchasers do not need to apply for a refund.” However, retailers should be consistent—if they choose to voluntarily collect only up to the cap amount for purchasers, they should do so for all purchasers.

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Avalara Author
Susan McLain
Avalara Author Susan McLain
Susan McLain began her career as a technical writer in technology industries such as satellite networking and medical devices. Her skills encompass technical and marketing writing, usability engineering, verification and validation testing and protocol writing, requirements development, business analysis, technical illustration/graphic design and marketing. She has owned her own business providing service to small to medium sized business and in other positions, she has been in project management, documentation and marketing. She is currently the content specialist for Avalara helping to “make sales tax less taxing.”