West Fargo Sales Tax Rate: 8% Breakdown, Exemptions, and Refunds

The sales tax rate in West Fargo, North Dakota is 8%. That total combines a 5% state sales tax, a 0.5% Cass County tax, and a 2.5% West Fargo city tax, and it applies to most retail purchases of physical goods, rentals, lodging, and certain services within city limits. The city share rose from 2% to 2.5% after voters approved a public safety sales tax in 2023.

How the 8% Breaks Down

Three taxing authorities each add a layer to every qualifying sale:

North Dakota state tax of 5%, set by North Dakota Century Code Section 57-39.2-02.1, which applies statewide to retail sales of tangible personal property, rentals, certain services, and digital goods.¹
Cass County tax of 0.5%, a local option tax funding county operations.²
West Fargo city tax of 2.5%, authorized under the city’s home rule charter and codified in Chapter 1-09 of the West Fargo Revised Ordinances. The 0.5% public safety increment, approved by voters, funds additional police and fire staffing.³

Unlike many North Dakota cities, West Fargo does not cap its local tax on a single transaction. The city eliminated its cap effective January 1, 2023, so the full 2.5% city rate applies to the entire purchase price no matter how large the sale.⁴

What the 8% Rate Applies To

The combined rate covers retail sales of tangible personal property, which includes nearly any physical item a buyer can take home: furniture, electronics, clothing, building materials, vehicle parts, and the like. Prewritten computer software is taxed the same way whether delivered on a disc or by download.¹

Several categories beyond physical goods also fall under the 8%:

Rentals and leases of tangible personal property such as equipment, tools, or formalwear. The lessor collects tax on each periodic payment.⁵
Admissions to amusement venues, entertainment events, and athletic contests, including participation fees for recreational activities.
Hotel, motel, and other short-term lodging.
Telephone and telecommunications services. Internet access is excluded.¹

Higher Rates on Alcohol

Alcoholic beverages carry a 7% state gross receipts tax instead of the usual 5% sales tax, which pushes the combined rate higher at bars, restaurants, and liquor stores.⁶

Restaurants, concession stands, and food trucks charge 8% on prepared food and non-alcoholic beverages (5% state + 2.5% city + 0.5% county).
On-sale alcoholic beverages, meaning drinks consumed on the premises, are taxed at 10% (7% state + 2.5% city + 0.5% county).
Off-sale alcoholic beverages, meaning packaged alcohol taken away from the store, are also taxed at 10%.²

Alcohol retailers may include the tax in posted prices rather than adding it at the register, so customers at bars and liquor stores may not see the tax broken out separately on a receipt.⁶

What’s Exempt

Groceries and Food for Home Consumption

Food and food ingredients sold for home consumption are exempt from both state and local sales tax. The exemption covers typical grocery items such as produce, meat, dairy, bread, and canned goods, along with bottled water and ice.⁷

Several categories inside a grocery store remain taxable:

Prepared food, meaning anything sold heated, combined by the seller from multiple ingredients, or served with utensils such as plates, forks, or napkins.
Candy, defined as sugar-based confections with chocolate, fruit, or nuts. A product containing flour is not candy for tax purposes and stays exempt.
Soft drinks, meaning sweetened non-alcoholic beverages, including fruit drinks that are 50% or less juice by volume.
Dietary supplements, identified by a “Supplement Facts” label rather than a “Nutrition Facts” label.
All food sold through vending machines, regardless of type.⁷

Medical Items

Prescription drugs for human use are exempt. So are durable medical equipment intended for home use (such as prescribed hospital beds or oxygen equipment), prosthetic devices, mobility-enhancing equipment such as wheelchairs, and diabetic and ostomy supplies.⁸

Government and Qualifying Nonprofits

Sales to the U.S. government, the State of North Dakota, local political subdivisions, and tribal government agencies are exempt. Nonprofit health associations and medical research institutes with 501(c)(3) status also qualify, along with licensed healthcare facilities purchasing for patient care and senior citizen service organizations that meet state eligibility rules.⁹

Buying From Out-of-State Sellers

When a West Fargo buyer purchases from an out-of-state seller who doesn’t collect North Dakota tax, use tax is owed at the same combined 8% rate. Use tax is the counterpart to sales tax and applies to tangible personal property brought or shipped into the state for storage, use, or consumption.¹⁰

Tax already paid to another state on the same purchase counts as a credit. You owe North Dakota only the difference if the other state’s rate was lower than the combined North Dakota rate plus applicable local taxes. For items not originally purchased for use in North Dakota, use tax is calculated on the fair market value at the time the item enters the state.¹⁰

Online Orders Shipped to West Fargo

Marketplace platforms such as Amazon or Etsy must collect and remit North Dakota sales tax, including the West Fargo local portion, once their marketplace sales exceed $100,000 in the current or prior calendar year. Tax is calculated based on the North Dakota delivery address, so a shipment to a West Fargo address triggers the full 8% rate.¹¹

Once a marketplace facilitator certifies to its third-party sellers that it will handle tax collection, those individual sellers are no longer liable for tax on sales made through that platform.¹¹

Refunds When Another City’s Cap Was Exceeded

West Fargo removed its local cap, so no refund is available for a large purchase made in West Fargo on the ground of exceeding a maximum. Many other North Dakota cities still cap their local tax, though, and if a retailer in one of those cities collects more local tax than the cap allows, the Tax Commissioner’s office can refund the excess. Claims go through the North Dakota Taxpayer Access Point (ND TAP) within three years of the purchase date.¹²

Each claim requires copies of the receipts or invoices showing the invoice date, seller name and address, itemized purchase prices, and a breakdown of state, city, and county tax paid. Third-party invoices and unpaid invoices do not qualify.¹²

1
North Dakota Legislative Branch. North Dakota Code 57-39.2 – Sales Tax
2
North Dakota Office of State Tax Commissioner. Notice to West Fargo Permit Holders
3
City of West Fargo. Public Safety Sales Tax
4
North Dakota Office of State Tax Commissioner. Local Tax Refund – Local Maximum Tax Amounts
5
North Dakota Office of State Tax Commissioner. Sales Tax – Rental and Leasing Companies Guideline
6
North Dakota Office of State Tax Commissioner. Bars, Lounges, and Taverns Sales Tax Guideline
7
North Dakota Office of State Tax Commissioner. Sales Tax – Grocery Stores, Convenience Stores, and Delicatessens Guideline
8
North Dakota Office of State Tax Commissioner. Drugstores Sales Tax Guideline
9
North Dakota Office of State Tax Commissioner. Sales Tax Exemptions and Incentives
10
North Dakota Office of State Tax Commissioner. Sales and Use Tax
11
North Dakota Office of State Tax Commissioner. Marketplace Facilitator
12
North Dakota Office of State Tax Commissioner. Request a Refund