North Dakota July Local Sales and Use Tax Rate Changes
- Sales Tax Rate Changes
- May 14, 2012 | Susan McLain
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.