Several Communities, Counties Pursue Sales Tax Increases

(KNOX) – Two counties and 11 cities in North Dakota are asking voters to greenlight sales tax increases this June to fund public safety, streets and parks, among other local services.

Grand Forks was the first in North Dakota to enact a sales tax back in 1985. Last year the local tax netted the Grand Forks over $33.8 million dollars.

The latest proposals follow the state’s new 3% cap on year-to-year property tax increases, but officials in several of those communities said the ballot measures are not a direct response to the new state policy.

The North Dakota Legislature created the cap as part of its 2025 property tax relief package. The legislation allows communities to waive the 3% limit if voters approve it on the general election ballot.

Recent informal surveys conducted by the North Dakota League of Cities and the North Dakota Association of Counties found many local governments worry the cap will eventually make it hard for them to cover basic expenses like payroll, building maintenance and emergency services. Some communities tapped into reserves to fund their 2026 budgets, according to the surveys.

DB/KNOX & ND Monitor