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North Dakota sales tax rate changes, April 2018


 New sales tax rates will take effect in North Dakota on April 1, 2018.

Numerous local option tax changes are taking effect April 1, 2018, in North Dakota. Local option taxes are imposed by cities and counties but administered by the North Dakota Office of State Tax Commissioner, which oversees tax collection, controls for delinquency, and performs audits.

Many localities in North Dakota have a maximum tax per purchase, for example, $25 or $50. Consumers are only required to pay the maximum tax, but since retailers generally collect and remit tax on the sales price, consumers frequently end up paying more than the maximum tax on costly purchases — it’s not the responsibility of retailers to determine the maximum tax on all transactions, though they may provide that service as a convenience to their customers. Consumers may obtain a refund of overpaid tax by remitting a claim for refund for local sales tax paid beyond the maximum tax.

City tax rate changes

Belfield is retaining its 2% city sales, use, and gross receipts tax. However, it’s eliminating the $50 per sale maximum tax altogether.

Edgeley is increasing its city sales, use, and gross receipts tax by 1%, to 3%. The maximum tax remains $50 per sale.

Grand Forks is increasing its city sales, use, and gross receipts tax by 0.5%, bringing the local option tax to 2.25%. The maximum tax will be $56.25 per sale.

Lincoln will impose a new city sales, use, and gross receipts tax of 1%, with a maximum tax of $25 per sale. In addition, it will provide a permit holder compensation for taxpayers who file on time: 3% of the tax due, to a maximum of $50 per month and $150 per quarter.

Linton will retain its 2% city sales, use, and gross receipts tax but change its maximum tax to $250 per sale.

Mohall will increase the city sales, use, and gross receipts tax by 1%, to 2%. The maximum tax remains $25 per sale.

Local option sales, use, and gross receipts taxes are reported on the same form as state sales tax. There are separate forms for city lodging taxes, city motor vehicle rental taxes, and city restaurant taxes. Additional details are available from the North Dakota Office of State Tax Commissioner.

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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.