City of Fargo Sales Tax
The City of Fargo currently has a two percent local sales tax authorized by Fargo taxpayers.
Local sales tax collections are administered under contract with the North Dakota State Tax Commissioner, who serves as a resource for local businesses on sales tax collection and reporting issues.
The amount of the sales tax allocated to each function is listed below:
Purpose | Rate | Authorization |
|---|---|---|
Infrastructure | 1 cent | 20 years: 1/1/2009 - 12/31/2028 |
Flood Control | 1/2 cent | 74 years: 1/1/2010 - 12/31/2084 |
Flood Control | 1/2 cent | 71 years: 1/1/2013 - 12/31/2084 |
Infrastructure Sales Tax
On June 13, 2006, citizens of Fargo voted to amend Article 3 of the Home Rule Charter to authorize collection of a one percent municipal sales, gross receipt and use tax. This commenced January 1, 2009 and will expire on December 31, 2028.
The City of Fargo will use this sales tax for infrastructure capital improvements which may include the following: streets and traffic management; water supply and treatment needs, including construction or expansion of water treatment facilities; water distribution system needs; sewage treatment and collection system needs, including construction or expansion of sewage treatment facilities and flood protection projects.
Flood Control Sales Tax
On June 30, 2009, citizens of Fargo voted to amend Article 3 of the Home Rule Charter to authorize collection of a one-half percent municipal sales, gross receipt and use tax. This commenced January 1, 2010 and was to expire on December 31, 2029. This sales tax is utilized by the City of Fargo for flood risk protection, mitigation and reduction.
In November 2016 the citizens of Fargo voted to extend the sales tax to expire in 12/31/84 or earlier if all debt and obligations related to the flood control projects have been retired.
On June 12, 2012 citizens of Fargo authorized the collection of a one-half percent municipal sales, gross receipt and use tax. This tax commenced January 1, 2013 and was to expire on December 31, 2032. The City uses this tax for infrastructure improvements including flood protection, after January 1, 2017 all proceeds are redirected to flood protection, mitigation and reduction.
In November 2016 the citizens of Fargo voted to extend the sales tax to expire in 12/31/84 or earlier if all debt and obligations related to the flood control projects have been retired.
Local Sales Tax Rebate
Any person who has made a taxable purchase of tangible personal property in the City of Fargo and paid the retailer local tax beyond the $50 maximum tax is eligible for a refund. The Maximum Tax is the maximum amount of local tax that could apply to a single transaction. The maximum tax amount (refund cap) allows purchasers to obtain a refund of the local tax paid to the retailer in excess of the maximum tax amount. Read more on the local sales tax rebate on the State's website for more information.
Sales Tax Collection History
- 10-Year Historical Sales Tax Collections
- Taxable Sales and Purchases by Category
- Historical Collections by Month
County & State Sales Tax
In addition to the above mentioned sales tax, Cass County and the State of North Dakota impose sales tax gross receipts on retailers in Fargo.