Informational

Presentation
Presentation Overview
Current Tax
Process
Proposal
Current Sales Tax Allocation
Sales Tax is 6.50% in the City of Dickinson
5.00% State Sales Tax
1.50% City Sales Tax
Current Sales Tax Allocation
City Rate %
Bismarck 1.50
Devils Lake 2.25
Dickinson 1.50
Grand Forks 2.25
Jamestown 2.50
Mandan 1.75
Minot 2.00
West Fargo 2.00
 Sales Taxes by Municipality
8

7.5
7.25 7.25
7 7 7
6.75
6.5 6.5
6

4 Municipal Tax
Total Sales Tax

2.5
2.25 2.25
2 2 2
1.75
1.5 1.5
1

0
Bismarck Devils Lake Dickinson Grand Forks Jamestown Mandan Minot West Fargo
 Sales Taxes by Municipality
8

7.5
7.25 7.25
7 7 7
6.75
6.5 6.5
6

4 Municipal Tax
Total Sales Tax

2.5
2.25 2.25
2 2 2
1.75
1.5 1.5
1

0
Bismarck Devils Lake Dickinson Grand Forks Jamestown Mandan Minot West Fargo
Current Sales Tax Allocation
DMC - Chapter 35 Sets Sales Tax - Sales Tax 1.5% (Section 35.020)
A tax of 1.5% is imposed upon the gross receipts of retailers from all retail sales of the following:
a) Tangible personal property, consisting of goods, wares, or merchandise.
b) The furnishing or service of gas, communication services, or steam other than steam used for processing
agricultural products.
c) Tickets or admissions to places of amusement or entertainment or athletic events, including amounts charged for
participation in an amusement, entertainment, or athletic activity, and including the playing of any machine for
amusement or entertainment in response to the use of a coin
d) Magazines and other periodicals.
e) The leasing or renting of a hotel or motel room or tourist court accommodations
f) The leasing or renting of tangible personal property, the transfer of title to which has not been subjected to a retail
sales tax under this chapter
g) Sales of alcoholic beverages and tobacco products as defined in section 57-39.2- 03.2 NDCC.
h) Furnishing and installment or attachment to real property in this state by a contractor or a subcontractor who is a
retailer of drapes, hardware for hanging drapes, or carpet for floor covering.
Current Use Tax Allocation
DMC - Chapter 35 Sets Use Tax – Use Tax 1.5% (Section 35.020)
A tax of 1.5% is imposed on the storage, use or consumption on the following:
a) The purchase price of tangible personal property purchased at retail for storage, use, or consumption
within the city.
b) The fair-market value of tangible personal property which was not originally purchased for storage,
use or consumption in the city, at the time which it is brought into this city.
c) Alcoholic beverages and tobacco products which are stored, used or consumed in this city, as provided
in section 57-39.2-03.2 NDCC.
d) The purchase price of tangible personal property used by a contractor or subcontractor to fulfill a
contract as defined in section 57-40.2-03.3 NDCC. This tax applies only to bids submitted on or after
July 1, 1990
Changing the Sales Tax Allocation
What does it require?
A change in the City’s Municipal Code
How is that accomplished?
An ordinance update
How can the ordinance be initiated?
Initiative of Ordinances  Article 5 of Dickinson’s Home Rule Charter
Resolution Adopted by the Board of City Commissioners
Changing the Sales Tax Allocation
What does it require?
A change in the City’s Municipal Code
How is that accomplished?
An ordinance update
How can the ordinance be initiated?
Option 1 - Initiative of Ordinances  Article 5 of Dickinson’s Home Rule Charter
Option 2 - Resolution Adopted by the Board of City Commissioners
How is the ordinance passed?
Requires a vote of the people
Requires adoption by Board of City Commissioners
Updating by State Tax Commissioner’s Office
Dickinson’s Home Rule Charter
Article 3 (16) requires that any changes to the sales tax requires a vote of
the people:
Any sales and use tax not specifically authorized by statute created
by the Board of City Commissioners through the powers stated
herein must be approved by a majority vote of the qualified
electors of the City of Dickinson before enactment.
Option 1: Initiative of Ordinances
Petition must be signed by qualified votes of the City equal to at least fifteen percent (15%) of
the total votes cast in the City at the most recent City election
NDCC requires 25%
Petition shall be filed with the City and contain a request that the ordinance set out in the
Petition be submitted to a vote of the electors of the City
City shall certify the Petition and cause the proposed ordinance to be published once in the
official newspaper
City shall call a special election within 90 days after the final certification
If the general city election is fixed not earlier than 15 days nor later than 90 days after the
date of certification, the ordinance shall be placed on the ballot for the general election
If a majority of electors vote in favor, the Board of City Commissioners shall pass the
ordinance with two readings
If adopted, the Board of City Commissioners may not repeal or make any amendment to
such ordinance for a period of five years after the date of the election except by a vote 4/5
vote
Option 2: Resolution of Commission
Board of City Commissioners passes a resolution indicating that it desires to
see an increase in sales tax and that such increase would be beneficial to the
community
The proposed ordinance is voted on by the qualified electors of the City
If passed by a majority, then Board of City Commissioners approves and
enacts said ordinance
After the vote and passage?
Notice must be given to ND Office of State Tax Commissioner who publishes
and provides notice
Changes go into effect the first day of the next calendar quarter after notice is
provided by the ND Office of State Tax Commissioner
Proposed Ballot Measure
SHALL THE CITY COMMISSION OF THE CITY OF DICKINSON ADOPT ORDINANCE NO. _____ AS
PUBLISHED IN THE DICKINSON PRESS ON __________________, 2022, WHICH WILL IMPLEMENT A
ONE (1) PERCENT SALES, USE & GROSS RECEIPTS TAX INCREASE FOR THE PURPOSE OF
FUNDING PROPERTY TAX REDUCTION, SPECIAL COMMUNITY PROJECTS AND CITY CAPITAL
PROJECTS?

MARK AN “X” IN ONE SQUARE ONLY

YES.......................................... □

NO............................................ □
Proposed Ordinance Amendment
Section 35.020 Sales Tax Imposed
Except as otherwise provided in this article, a tax of one and one-half two and one-half percent is imposed
upon the gross receipts of retailers from all retail sales within the corporate limits of the City of Dickinson,
North Dakota, of the following: . . .

Section 35.090 Dedication of tax proceeds

(c) All revenues raised and collected from the additional one percent sales and use tax adopted by
Ordinance No. ______, less administrative expenses, shall be dedicated as follows:

1) Forty percent (40%) of the tax proceeds shall be dedicated to property tax reduction.
2) Thirty percent (30%) of the tax proceeds shall be dedicated to city capital projects and infrastructure
(streets, water, sewer and stormwater).
3) Thirty percent (30%) of the tax proceeds shall be dedicated to community betterment projects.
More Information
Where to Get Additional Information
https://www.tax.nd.gov/business/sales-and-use-tax/local-taxes-city-and-
county-taxes