FARGO — Residents and visitors are spending less, according to the city of Fargo, leading to a drop in sales tax revenue. If the rate remains lower than last year, it will be the first drop in sales tax revenue since 2020.

The city’s sales tax revenue has dropped to troubling levels, according to Finance Director Susan Thomspon.

“Unfortunately, it doesn’t look very good,” she told Fargo city commissioners during a meeting of the Finance Committee on Wednesday, Aug. 27.

Year-to-date, the city’s tax revenue is coming in just over 3% lower than last year, Thompson said.

While the sales tax revenue for 2025 is looking “flat,” Mayor Tim Mahoney told The Forum, it won’t have any unexpected impact on the city’s finances for 2026.

“The economy has lately been flat,” Mahoney said, “You’re just

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