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North Dakota sales tax changes, January 2018


 New local sales tax rates will take effect in North Dakota on Jan. 1.

Several local tax changes are set to take effect in North Dakota on Jan. 1, 2018.

A 1% city sales, use, and gross receipts tax in Harvey will sunset as of Dec. 31, 2017. However, the city has adopted an ordinance to continue the 1% tax as of Jan. 1, 2018. As a result, the local tax rate in Harvey will remain 2%, with a maximum tax of $50 per sale. New farm machinery and new farm irrigation equipment are exempt from the 2% local tax.

Hillsboro will impose a new 2% city lodging tax as of Jan. 1. It will apply to gross receipts from the lease or rental of hotel, motel, or tourist court accommodations for a period of less than 30 consecutive calendar days.

New Town will impose a new 1% city sales, use, and gross receipts tax as of Jan. 1. The maximum tax is $25 per sale, and there are no local exemptions.

As in Harvey, a 1% local tax is sunsetting in Velva on Dec. 31, and a new 1% local tax will be adopted as of Jan. 1. The local tax in Velva therefore remains 2% with a maximum tax of $25 per sale. New farm machinery and new farm irrigation equipment are exempt from the local tax.

The North Dakota Office of State Tax Commissioner will no longer inform taxpayers of local sales tax rate changes by mail beginning Jan. 1, 2018. Instead, rate change notifications will be sent electronically. Visit www.nd.gov/tax for additional information. More details are available from the State Tax Commissioner.

It can be challenging to keep up with local sales and use tax rate changes, particularly for companies doing business in multiple jurisdictions. Tax automation software can help. Learn more.


Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.