Cities and counties may levy sales and use taxes, as well as special taxes such as lodging taxes, lodging and restaurant taxes, and motor vehicle rental taxes.
New local taxes and changes to existing local taxes become effective on the first day of a calendar quarter. Updates are posted 60 days prior to the changes becoming effective.
Local Sales Tax Rate Lookup – The Sales and Use Tax Rate Locator only includes state and local sales and use tax rates and boundaries for North Dakota. It does not include special taxes such as: local lodging, local lodging and restaurant, alcohol, tobacco, excise taxes, etc.
For detailed information about local taxes in North Dakota cities and counties, see the Guideline - Local Sales Tax by Location.
Local Taxing Rate Changes – City/County Rate Changes
Sign up to receive email notification of rate changes in cities and counties. When signing up, select “Sales & Special Taxes.”
Local Lodging and Restaurant Taxes
Local lodging and restaurant tax is collected on short-term lodging rentals for a city or county. An additional tax may be imposed on the rental of lodging and sales of prepared food and beverages.
The governing body of any city or county may, by ordinance, impose a city or county tax. Many cities and counties impose taxes on lodging and prepared foods and beverages.
Tax Rate: Local Lodging Tax - May not exceed 2%; Lodging & Restaurant Tax – 1% on sales
Distribution of Funds: Local government imposing the tax
Move to Digital
Starting January 1, 2023, the Office of State Tax Commissioner will no longer mail paper return forms for sales and use, lodging and restaurant, and prepaid wireless 911 fee tax returns. Moving forward, you can file and pay your tax return on our user-friendly, online portal, ND TAP.
Local Motor Vehicle Rental Taxes
Local motor vehicle rental tax may be collected by cities who have an airport within the city limits.
Cities who current impose this tax include Bismarck, Grand Forks and Minot.
Tax Rate: 1% at the rental facility in the airport
Distribution of Funds: Local government imposing the tax
Local Tax Refund – Local Tax Paid Beyond Maximum Tax
Certain cities and counties impose a maximum tax amount (refund cap) to purchases that are taxed at the city or county level.
Maximum Tax is the maximum amount of local tax that could apply to a single purchase. The maximum tax amount (refund cap as shown above) allows purchasers to obtain a refund of the local tax paid to the retailer in excess of the maximum tax amount.
Taxpayers can qualify for the refund if they meet the following requirements.
- The sale must be taxed correctly.
- The local tax collected on the sale must be more than the local tax maximum amount.
- The refund request must be submitted within three years of the sale invoice or receipt date.
- An electronic or paper copy of the sale invoice or receipt must be submitted with the refund request.
Submit a Local Tax Refund in ND TAP
If you're unable to submit the refund in ND TAP, please call our office at 701-328-1246.