Fargo Considers Extending Infrastructure Sales Tax

City officials discuss renewing 20-year-old tax to fund core infrastructure projects.

Published on Mar. 6, 2026

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The Fargo City Commission is discussing the potential extension of the city's infrastructure sales tax (IST), which has been in place for the past 20 years and is set to expire in December 2028. City Administrator Michael Redlinger emphasized that the IST funds are legally restricted to core infrastructure needs such as streets, water supply, water treatment, sewage, and flood control, benefiting all areas of Fargo. Without the IST, the city would have to rely more heavily on special assessments, which officials want to avoid to prevent burdening fixed-income seniors and core neighborhoods.

Why it matters

The infrastructure sales tax has been an important source of funding for Fargo's core infrastructure needs over the past two decades. Extending the tax would allow the city to continue maintaining and improving essential services like roads, water, and sewage systems without placing a disproportionate burden on certain residents through special assessments.

The details

The infrastructure sales tax (IST) in Fargo has generated approximately $34 million in 2025 for core infrastructure projects. City Administrator Michael Redlinger stated that the funds are legally restricted to streets, water supply, water treatment, sewage, and flood control, ensuring safe and reliable infrastructure across the city. If the tax is not extended, the city would have to rely more heavily on special assessments, which officials want to avoid to prevent burdening fixed-income seniors and core neighborhoods.

  • The infrastructure sales tax has been in effect for the past 20 years.
  • The current infrastructure sales tax is set to expire in December 2028.

The players

Michael Redlinger

The City Administrator of Fargo, North Dakota.

Fargo City Commission

The governing body of the city of Fargo, North Dakota, which is discussing the potential extension of the infrastructure sales tax.

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What they’re saying

“These funds are legally restricted to core needs in the city of Fargo. They are, in fact, strictly dedicated to streets, water supply, water treatment, sewage and flood control, ensuring safe and reliable infrastructure.”

— Michael Redlinger, City Administrator (am1100theflag.com)

“That's something that this commission has talked about for several years, that we want to try remove that burden of special assessments, especially on fixed income seniors, as well as those in our core neighborhoods throughout Fargo. So we think that this is really an opportunity for us to share that cost with many, many payers in a shared sales tax model versus having just a few people more heavily face that burden on those on those responsibilities of cost.”

— Michael Redlinger, City Administrator (am1100theflag.com)

What’s next

The Fargo City Commission will continue to discuss the potential extension of the infrastructure sales tax in the coming months, with a decision expected before the current tax expires in December 2028.

The takeaway

Fargo's infrastructure sales tax has been a crucial source of funding for the city's core infrastructure needs over the past two decades. Extending the tax would allow Fargo to continue maintaining and improving essential services like roads, water, and sewage systems without placing a disproportionate burden on certain residents through special assessments.