Five North Dakota communities are making changes to their city sales taxes, effective October 1.
According to the North Dakota Tax Commissioner’s office, Watford City, Devils Lake, Fessenden, Kulm and Lisbon all have either increased the tax rate, modified the allocation of taxes or have removed maximum tax caps.
Here’s the breakdown for the changes:
- Devils Lake. The city will increase its rate to from 2 percent to 2.25 percent, beginning October 1. The maximum tax cap still remains at $25 per transaction
- Fessenden. Beginning October 1, the city will start a new local tax. The rate will be 2 percent with a $50 maximum tax cap per single transaction.
- Kulm. The city is changing how it allocates the funds raised through the existing 2 percent city sales tax. The $50 maximum cap on single sales remains in effect.
- Lisbon. The city has approved a .5 percent local tax increase to raise the rate to 2.50 percent for the city sales. The maximum tax cap is at $62.50 per individual sale.,
- Watford City. The city has voted to eliminate their maximum tax cap of $25 per single transaction, effective October 1. That means all sales, including those above $25, will be taxed.
You can read more on the changes here.