Pat Paschke, Minto director of public works, works on a city street sweeper May 7, 2026, in preparation for seasonal work. Minto residents will vote in June on a half-cent sales tax increase to support street maintenance and other infrastructure. (Photo by Larry Biri/For the North Dakota Monitor)
MINTO, N.D. (North Dakota Monitor) – 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.
The 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.
Voters in Minto, a city of roughly 600 in Walsh County, will vote on whether to raise their sales tax by a half percent to fund infrastructure construction and maintenance. Minto’s local sales tax is currently 1%, according to data published by the Office of State Tax Commissioner.
Auditor Angela Shutt said while the property tax cap partly influenced the city’s decision to put the proposal on the ballot, the main purpose is to keep up with inflation. Minto’s sales tax has stayed at 1% since it was created in 2006, she wrote in an email to the North Dakota Monitor.
“If the sales tax increase is voted down by residents, we may have to look at other options to raise revenue because the price of everything is constantly increasing,” Shutt said.
The city’s finances don’t yet feel squeezed by the property tax cap, she added, since the law has only been in place for a year.
Ramsey County, population about 11,500, is putting a measure on the ballot for a 1% sales, use and alcoholic beverages tax. Ramsey County currently imposes lodging and restaurant taxes, according to Office of State Tax Commissioner data.
County Commissioner Jeff Frith said that while the property tax cap “may affect broader financial planning,” it wasn’t the reason behind the sales tax ballot measure.
“The primary goal of the sales tax proposal is to generate additional revenue without further burdening property taxes,” Frith wrote in an email. The money will be used to fund the county’s public safety departments.
In addition to the 11 cities proposing increases, Minot is proposing a sales tax increase to support its parks district in exchange for lowering property taxes.
It’s not uncommon for communities to propose sales tax increases, said Matt Gardner, executive director of the North Dakota League of Cities.
“Before caps, communities were strapped for funds anyway,” Gardner said. “They’re consistently trying to find ways to fund infrastructure projects and essential services.”
Representatives of the Association of Counties and League of Cities said their organizations aren’t sure whether there are more sales tax-related measures on the ballot this primary election compared to past election cycles. Some additional communities are voting on whether to extend existing sales taxes.
Three counties and two cities have also proposed ballot measures to raise property taxes. The revenue would support roads, emergency services and a public library.
Despite local governments’ discomfort with the 3% property cap, communities aren’t jumping at the chance to change it, said Donnell Preskey, a lobbyist for the North Dakota Association of Counties.
Neither Preskey nor Gardner were aware of any local governments planning to ask voters to raise the cap in November.
“I’m sure their mindset was, ‘Let’s get through this budget cycle, since it’s so new, and see what happens,’” Preskey said.
The Association of Counties, League of Cities and other local government associations at legislative committee meetings have voiced support for adding more flexibility to the cap during the 2027 legislative session.
County officials understand that the 3% cap isn’t going away and they want to figure out how to make it work, Preskey said.
“What they do hope for is some more flexibility or exemptions provided for certain expenses, because we’re required by law to provide certain services,” she said.
Proposals include exemptions for election expenses, healthcare benefits and public safety costs, among others.
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