North Dakota Short-Term Rental Laws & Hotel Tax (2026)

State license required

Yes

Next rule change

Jun 30, 2027

The laws in brief

Who needs it

Any host renting a home, part of a home or a room for fewer than 30 days, unless the booking platform's contract makes it responsible for remitting the tax; every short-term rental in West Fargo's zoning jurisdiction needs the city license.^2,4,7,9,15

Issued by

North Dakota Office of State Tax Commissioner (state permit); City of West Fargo (city license)

Valid for

West Fargo licenses run one year from July 1 to June 30, are not transferable and renew 30 to 90 days before expiry; state lodging establishment licenses expire each December 31.

On listings

The number must appear on every listing

Fees

Who qualifies

• West Fargo: the license goes to the owner, operator or tenant of the dwelling unit; proof of liability insurance and of the state sales and use tax permit is required
• West Fargo: the home must pass a Safety and Compliance Inspection against fire, building and health codes
• Properties with more than five guest rooms or ten occupants also need a state lodging establishment license

How to apply

1. 1 Apply for a North Dakota sales and use tax permit through the Office of State Tax Commissioner's ND TAP portal about 30 days before renting, unless your booking platform's contract makes it responsible for remitting the tax.
2. 2 In West Fargo, apply for the city short-term rental license with proof of ownership or tenancy, liability insurance, your sales and use tax permit, scaled floor plans and contact details, then pay the fee and pass the inspection.
3. 3 Register a city lodging tax account where the city administers the tax itself (Fargo, Grand Forks, Minot, Valley City, West Fargo) unless Airbnb collects it.

Permit rules

State sales tax permit for hosts

A host who rents a home, a portion of a home or a room for fewer than 30 days must hold a North Dakota sales and use tax permit and collect and remit the tax, unless the booking platform's contract makes the platform responsible for remitting it.^7,15

Platforms can collect and remit the state tax

A host remains responsible for collecting and remitting the tax unless the contract with the lodging marketplace makes the marketplace responsible; Airbnb collects the state sales tax and several local taxes on stays of 29 nights or fewer.^7,17

Small homes fall outside the state lodging license

The state health license for lodging establishments does not cover a single structure with five or fewer guest rooms and ten or fewer total occupants, which is the size of a typical Airbnb home.²

State lodging license for larger properties

A building that furnishes sleeping accommodations to transient guests for a charge and exceeds the small-home limit must be licensed by the North Dakota Department of Health and Human Services, and the license expires every December 31.²

West Fargo: annual license

Every dwelling unit rented for 29 nights or fewer in West Fargo's zoning jurisdiction needs an annual short-term rental license; the ordinance took effect on July 1, 2026.^4,9 Applies to: West Fargo · In force since July 1, 2026

West Fargo: $150 license plus $65 inspection

The annual license fee is $150, prorated by month in the first year, and the required Safety and Compliance Inspection costs $65 a year.^9,11 Applies to: West Fargo · In force since July 1, 2026

West Fargo: licenses run July 1 to June 30

Licenses run for one year from July 1 to June 30, are not transferable, and renew 30 to 90 days before expiry.^4,9 Applies to: West Fargo · In force since July 1, 2026

West Fargo: license number in every ad

Every advertisement must show the city-issued license number and the maximum occupancy, and the license must be posted in the main entryway.^4,9 Applies to: West Fargo · In force since July 1, 2026

Advertised price must be the total price

Since May 12, 2025 a federal rule requires any advertised price for a short-term rental to show the total price, including mandatory fees; taxes and other government charges may be shown separately.^6,16 In force since May 12, 2025

Federal fee rule covers platforms

The federal fee rule applies to platforms, resellers and travel agents that display short-term lodging prices, not only to hosts.¹⁶ In force since May 12, 2025

West Fargo: open to owners, operators and tenants

The West Fargo license is issued to the owner, operator or tenant of the dwelling unit; the ordinance sets no primary-residence condition.⁴ Applies to: West Fargo · In force since July 1, 2026

West Fargo: HOA and covenant limits are the host's risk

The city license does not override private covenants; a host whose property is covered by restrictions that ban short-term rentals carries that responsibility alone.^4,9 Applies to: West Fargo · In force since July 1, 2026

Bismarck: accessory use on any residential property

Bismarck's zoning code permits a short-term rental, a stay of fewer than 30 consecutive days, as an accessory use on any residential property in any district.^5,12 Applies to: Bismarck

Bismarck: appearance, parking, noise and vehicles

A Bismarck short-term rental may not change the home's residential appearance, may not be an RV or other non-dwelling structure, and must meet the city's off-street parking and noise rules and the building code.⁵ Applies to: Bismarck

1. 1. West Fargo

   Cass County

   West Fargo has required an annual license for every short-term rental since July 1, 2026. The license costs $150 plus a $65 inspection, and the home must pass a safety inspection, carry $500,000 of liability insurance and show the license number in every ad.^4,9,11

   • Annual license, July 1 to June 30: $150 (prorated by month) plus $65 inspection
   • Open to the owner, operator or tenant; no primary-residence condition
   • Occupancy by bedroom: 1 guest at 70 to 99.9 sq ft, 2 at 100 to 149.9, 3 at 150+
   • Two off-street parking spaces, no parties, a contact reachable within 2 hours, $500,000 insurance

2. 2. Bismarck

   Burleigh County

   Bismarck's zoning code permits a short-term rental, a stay of fewer than 30 consecutive days, as an accessory use on any residential property in any district. The home must keep its residential appearance and meet parking, noise and building-code rules, and the city's FAQ says any housing unit may be rented short term.^5,8,12

   • Permitted as an accessory use on any residential property in any district
   • No change to the home's residential appearance; no RV or non-dwelling structure as the rental
   • Off-street parking per Section 14-03-10; noise per Chapter 8-10
   • Taxes of about 11%: 5% state, 2% city, 1% Burleigh County, 2% city lodging, 1% lodging and restaurant

3. 3. Fargo

   Cass County

   A Fargo short stay carries a 3% city lodging tax that the city administers and Airbnb collects, on top of the 5% state sales tax, the city sales tax and Cass County's 0.5%. Fargo voters approved an additional 3% tax on hotel and motel stays in November 2024.^8,14,17

   • City lodging tax 3%, administered by the City of Fargo and collected by Airbnb
   • 5% state sales tax, 2.25% city sales tax and 0.5% Cass County sales tax: 10.75% in all with the lodging tax
   • Voters approved an additional 3% tax on hotel and motel stays in November 2024

4. 4. Grand Forks

   Grand Forks County

   A Grand Forks short stay carries a 3% hotel-motel tax that Airbnb collects, plus the 5% state sales tax, the 2.25% city sales tax and a 0.25% lodging and restaurant tax, 10.5% in all.^8,17

   • Hotel-motel tax 3%, collected by Airbnb on stays of 29 nights or fewer
   • 5% state sales tax plus 2.25% city sales tax
   • 0.25% city lodging and restaurant tax

What the host still handles

• A North Dakota sales and use tax permit from the Office of State Tax Commissioner (apply in ND TAP about 30 days before renting), unless the booking platform's contract makes it responsible for remitting the tax
• A city lodging tax account with the city where the lodging tax is administered locally (Fargo, Grand Forks, Minot, Valley City and West Fargo)
• In West Fargo, the city short-term rental license, whose application requires proof of the state sales and use tax permit^{1,7,8,13,14,15,17}

Stays under 30 days are taxable lodging

North Dakota treats renting a house, apartment, part of a home or a room for fewer than 30 days as a taxable lodging rental.⁷

30 consecutive nights is exempt from lodging tax

A stay of 30 or more consecutive days by the same guest is exempt from state sales tax and city lodging taxes; a break in the stay makes the room charge taxable again.⁷

Extra fees are taxed with the stay

Fees for additional items, services or amenities tied to the rental, such as pet, extra-person and reservation fees, are taxed as part of the accommodation rental; Airbnb applies the state tax to the listing price including cleaning fees.^7,17

Cities and counties add their own taxes

On top of the state tax, many North Dakota cities add taxes on lodging, restaurant meals and on-sale beverages, and counties add a sales tax.^7,8

State-administered local lodging tax is capped at 2%

State-administered local lodging taxes may not exceed 2% and the lodging and restaurant tax is 1%; Fargo, Grand Forks, Minot, Valley City and West Fargo run their own lodging taxes, and Fargo and Grand Forks charge 3%.^8,13,17

West Fargo: short-term means 29 nights or fewer

West Fargo defines a short-term rental as the rental of a dwelling unit or any part of it for 29 or fewer consecutive days.⁴ Applies to: West Fargo · In force since July 1, 2026

West Fargo: safety inspection before licensing

The home must pass a Safety and Compliance Inspection against fire, building and health codes before the license is issued.^4,9 Applies to: West Fargo · In force since July 1, 2026

West Fargo: $500,000 liability insurance

Licensees must carry general liability insurance of at least $500,000 on the premises at all times and show proof on request.^4,9 Applies to: West Fargo · In force since July 1, 2026

West Fargo: occupancy set by bedrooms

Maximum occupancy is the sum of the allowance for each designated bedroom: none under 70 square feet, 1 guest at 70 to 99.9, 2 at 100 to 149.9 and 3 at 150 or more, subject to the property maintenance code.^4,9 Applies to: West Fargo · In force since July 1, 2026

West Fargo: parking, parties and signs

A West Fargo short-term rental needs two off-street parking spaces available to guests, may be used only for overnight accommodation and not for parties, and may carry no exterior sign.^4,9 Applies to: West Fargo · In force since July 1, 2026

West Fargo: contact reachable within two hours

The application must name one or more people who can respond within two hours at all times while the home is rented, with access to the home and authority to decide.⁴ Applies to: West Fargo · In force since July 1, 2026

• Failing to comply with the state sales tax chapter, including not remitting the tax, is a class A misdemeanor; the maximum penalty is 360 days in jail, a $3,000 fine, or both.^1,3
• West Fargo: fines of $250 for a first offense, $500 for a second and $1,000 for the third and each later offense within 12 months, and the license can be suspended or revoked.^9,11
• West Fargo: a home found renting without a license may get a compliance period of up to 30 calendar days to apply before penalties apply.^4,9
• State sales tax: filing late adds a penalty of 5% of the tax due (at least $5) for each month, up to 25%, plus interest of 1% a month.¹
• Federal fee rule: businesses that violate the FTC fee rule can be ordered to comply, refund consumers and pay civil penalties.¹⁶

1. June 30, 2027 Upcoming
   First West Fargo licenses expire

   The first West Fargo licenses run from July 1, 2026 to June 30, 2027; renewal applications are due at least 30 and no more than 90 days before expiry.^9,10

2. July 1, 2026
   West Fargo license requirement takes effect

   Operating a short-term rental in West Fargo without a license became an infraction subject to fines, with the $150 license fee and $65 inspection fee in force.^4,9,11

3. May 1, 2026
   West Fargo opens license applications

   Operators could begin applying for a West Fargo short-term rental license on May 1, 2026, ahead of the July 1 start.¹⁰

4. November 3, 2025
   West Fargo adopts short-term rental licensing

   The West Fargo City Commission approved Ordinance 1254, creating an annual short-term rental license, with fees and fines set by resolution the same day.^10,11

5. October 2025
   Bismarck approves a short-term rental ordinance

   The Bismarck City Commission approved an ordinance defining a short-term rental as a stay of under 30 days; the zoning code permits it as an accessory use on residential property.^5,19

6. May 12, 2025
   Federal total-price rule takes effect

   The FTC Rule on Unfair or Deceptive Fees began applying to short-term rentals, requiring advertised prices to include mandatory fees.¹⁶

7. November 5, 2024
   Fargo voters approve an additional 3% hotel and motel tax

   Fargo voters passed an additional 3% tax on hotel and motel stays to fund a convention center; the city's announcement describes it as a tax on hotel and motel stays.¹⁴

Estimate what a home could earn

1. 1. North Dakota Century Code chapter 57-39.2, Sales Tax · North Dakota Legislative Assembly
2. 2. North Dakota Century Code chapter 23-09, Food and Lodging Establishments and Assisted Living Facilities · North Dakota Legislative Assembly
3. 3. North Dakota Century Code chapter 12.1-32, Penalties and Sentencing · North Dakota Legislative Assembly
4. 4. Ordinance 1254, Short-Term Rentals (Chapter 10-16) · City of West Fargo
5. 5. Title 14 Zoning, Bismarck Code of Ordinances · City of Bismarck
6. 6. 16 CFR Part 464, Rule on Unfair or Deceptive Fees · Electronic Code of Federal Regulations
7. 7. Sales Tax: Hotels, Motels, and Lodging Facilities Guideline · North Dakota Office of State Tax Commissioner
8. 8. Local Taxes by Location Guideline (rates effective October 1, 2026) · North Dakota Office of State Tax Commissioner
9. 9. Short-Term Rentals · City of West Fargo
10. 10. City of West Fargo to Open Licensing Process for Short-Term Rentals · City of West Fargo
11. 11. Resolution Setting Fees and Fines for the Short Term Rental Ordinance · City of West Fargo
12. 12. FAQ: Can I rent my property on Airbnb, VRBO, or another short-term rental site? · City of Bismarck
13. 13. Local Taxes: City and County Taxes · North Dakota Office of State Tax Commissioner
14. 14. Fargo Receives Nine Proposals to Convention Center RFP · City of Fargo
15. 15. Sales and Use Tax · North Dakota Office of State Tax Commissioner
16. 16. The Rule on Unfair or Deceptive Fees: Frequently Asked Questions · Federal Trade Commission
17. 17. Occupancy tax collection and remittance by Airbnb in North Dakota · Airbnb Help Center
18. 18. Responsible hosting in the United States · Airbnb Help Center
19. 19. Bismarck approves and clarifies rules for short-term rentals (October 31, 2025) · KXNET