North Dakota local sales taxes change on 1 January 2027: new 1% Arnegard tax, five city increases, and Harvey and Mandan drop their per-sale caps

What changed in detail

The North Dakota Office of State Tax Commissioner’s notice of local tax changes effective 1 January 2027 lists seven city changes to the city sales, use and gross receipts tax.

Arnegard imposes a new 1% tax (local code 253), with a maximum tax (refund cap) of $50.00 per sale.

Four cities increase from 2% to 3%: Bottineau (refund cap $75.00 per sale), Harvey, Walhalla (no maximum tax) and Wilton (refund cap $50.00 per sale). Minto increases from 1% to 1.5%, with a refund cap of $25.00 per sale.

Harvey’s $50 per-sale maximum tax is removed alongside its rate increase. Mandan removes its $56.25 per-sale maximum tax with no change to its rate, exemptions or vendor compensation.

For the six cities with a rate change, the notice also covers whether the limited exemption for contractors applies and that the tax applies to contract bids submitted on or after the effective date; for the five cities raising an existing tax it also states the farm-machinery exemption and vendor compensation terms. Mandan’s entry records no change to its rate, exemptions or vendor compensation.

What it means

The cap removals are the change most likely to be missed. Rate tables update on a rate change, but Harvey and Mandan both lose their per-sale maximum, so large single transactions there (vehicles, equipment, construction materials) will carry uncapped city tax from 1 January. Mandan’s rate does not move at all, so a rate-only diff will not surface it. Contractors bidding work in these cities should note that the new rates apply to bids submitted on or after 1 January 2027.