NEWS

Bismarck Taxes Rise — But Do Services Keep Pace?

Bismarck’s new 2% local sales tax sparks debate — does our city deliver public services on par with peer cities like Fargo or Grand Forks?

By BismarckLocal Staff2 min read
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TL;DR
  • <p>As of April 1, 2025, Bismarck increased its local sales, use, and gross receipts tax from <strong>1
  • Combined with state and county rates, Bismarck residents now pay an effective <strong>8
  • 0% sales tax</strong> total

As of April 1, 2025, Bismarck increased its local sales, use, and gross receipts tax from 1.5% to 2.0%. Combined with state and county rates, Bismarck residents now pay an effective 8.0% sales tax total.

Critics and supporters alike are asking: are we getting services that justify the hike — especially compared to peer cities?

  • The extra 0.5% bump was adopted to shore up city revenues amid rising costs.

  • For property taxes, Bismarck has held its mill levy steady for three years running.

  • Looking ahead to 2026, the city expects general fund expenses to exceed revenues, forcing reliance on reserves.

  • Under state law (House Bill 1176), Bismarck must cap property tax growth at 3%.

  • Fargo is planning to raise its local tax from 2.0% to 2.25% as of April 2025.

  • Grand Forks carries a local rate of 1.75%, placing it slightly below Bismarck’s new 2.0%.

  • Minot imposes its own municipal taxes (especially tied to its airport), but its local sales tax rates hover around 2% too.

So Bismarck isn’t dramatically out of line — but it's pushing upward while some peers remain steady.

With higher taxes comes expectation. Locals are watching closely on fronts like:

  • Public safety & infrastructure: The 2026 budget allocates over $40 million just for policing and fire.

  • Facilities & expansion: The budget also includes funds for a new police station, fire trucks, and system upgrades.

But some residents say they haven’t felt a noticeable bump in services.

“I’m paying more at the register — yet the potholes on east side still nip at my tires,” said longtime Bismarck resident Janet Simmons.

City Finance Director Dmitriy Chernyak defends the hike: “We need sustainable revenue streams to maintain services without tapping reserves indefinitely.” He adds Bismarck’s property tax rate has not increased for several years, so the burden is more spread out.

If you shop locally, that 0.5% jump already impacts your out-of-pocket cost. Whether you live north, south, or east — your service experience (roads, safety, utilities) is the barometer. As the 2025 sales tax hits registers, Bismarck must deliver results. If claims of better emergency response, improved roads, and upgraded civic services don’t materialize, locals may regard the hike as a tax raise — not an investment.

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