reglab/statecodes huggingface dataset:
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-03 - Income Taxes and Privilege Taxes Based on Income › Chapter 81-03-09 - Division of Income › Section 81-03-09-27 - Sales factor - Denominator

Current through Supplement No. 393, July, 2024
The denominator of the sales factor shall include the total
				  gross receipts derived by the taxpayer from transactions and activity in the
				  regular course of its trade or business, except receipts excluded under section
				  81-03-09-34.
General Authority: NDCC
					 57-38-56
Law Implemented: NDCC
					 57-38.1-15,
					 57-59-01
					 (art.IV(15))
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-03 - Income Taxes and Privilege Taxes Based on Income › Chapter 81-03-09 - Division of Income › Section 81-03-09-28 - Sales factor - Numerator

Current through Supplement No. 393, July, 2024
The numerator of the sales factor shall include gross
				  receipts attributable to this state and derived by the taxpayer from
				  transactions and activity in the regular course of its trade or business. All
				  interest income, service charges, carrying charges, or time-price differential
				  charges incidental to such gross receipts shall be included regardless of the
				  place where the accounting records are maintained or the location of the
				  contract or other evidence of indebtedness.
General Authority:
NDCC
				  57-38-56
Law Implemented:
NDCC
				  57-38.1-15,
				  57-59-01
				  (art.IV(15))
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-03 - Income Taxes and Privilege Taxes Based on Income › Chapter 81-03-09 - Division of Income › Section 81-03-09-29 - Sales factor - Sales of tangible personal property in this state

Current through Supplement No. 393, July, 2024
1. Gross receipts from sales of tangible
				personal property, except sales to the United States government, see section
				81-03-09-30, are in this state:
a. If the property is delivered or shipped to
				a purchaser within this state regardless of the free on board point or other
				conditions of sale; or
b. If the
				property is shipped from an office, store, warehouse, factory, or other place
				of storage in this state and the taxpayer is not taxable in the state of the
				purchaser.
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-03 - Income Taxes and Privilege Taxes Based on Income › Chapter 81-03-09 - Division of Income › Section 81-03-09-30 - Sales factor - Sales of tangible personal property to United States government in this state

Current through Supplement No. 393, July, 2024
Gross receipts from sales of tangible personal property to
				  the United States government are in this state if the property is shipped from
				  an office, store, warehouse, factory, or other place of storage in this state.
				  For the purposes of this section, only sales for which the United States
				  government makes direct payment to the seller pursuant to the terms of a
				  contract constitute sales to the United States government. Thus, as a general
				  rule, sales by a subcontractor to a prime contractor, the party to the contract
				  with the United States government, do not constitute sales to the United State
				  government.
Example 1: A taxpayer contracts with general services
				  administration to deliver X number of trucks which were paid for by the United
				  States government. The sale is a sale to the United States government.
Example 2: The taxpayer as a subcontractor, to a prime
				  contractor with the national aeronautics and space administration, contracts to
				  build a component of a rocket for one million dollars. A sale by the
				  subcontractor to the prime contractor is not a sale to the United States
				  government.
General Authority:
NDCC
				  57-38-56
Law Implemented:
NDCC
				  57-38.1-16,
				  57-59-01
				  (art.IV(16))
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-03 - Income Taxes and Privilege Taxes Based on Income › Chapter 81-03-09 - Division of Income › Section 81-03-09-31 - Sales factor - Sales other than sales of tangible personal property in this state

Current through Supplement No. 393, July, 2024
1.
In
				general.
Both North Dakota Century Code section
				57-38.1-17 and article IV(17) of
				North Dakota Century Code section
				57-59-01 provide for the inclusion
				in the numerator of the sales factor of gross receipts from transactions other
				than sales of tangible personal property, including transactions with the
				United States government; under this section gross receipts are attributed to
				this state if the income-producing activity which gave rise to the receipts is
				performed wholly within this state. Also, gross receipts are attributed to this
				state if, with respect to a particular item of income, the income-producing
				activity is performed within and without this state but the greater proportion
				of the income-producing activity is performed in this state, based on costs of
				performance.
2.
Income-producing activity defined.
The term "income-producing
				activity" applies to each separate item of income and means the transactions
				and activity directly engaged in by the taxpayer in the regular course of its
				trade or business for the ultimate purpose of obtaining gains or profits. Such
				activity does not include transactions and activities performed on behalf of a
				taxpayer, such as those conducted on its behalf by an independent contractor.
				Accordingly, income-producing activity includes, but is not limited to, the
				following:
a. The rendering of personal
				services by employees or the utilization of tangible and intangible property by
				the taxpayer in performing a service.
b. The sale, rental, leasing, licensing, or
				other use of real property.
c. The
				rental, leasing, licensing, or other use of tangible personal property.
d. The sale, licensing, or other
				use of intangible personal property.
The mere holding of intangible personal property is not, of
				  itself, an income-producing activity.
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-03 - Income Taxes and Privilege Taxes Based on Income › Chapter 81-03-09 - Division of Income › Section 81-03-09-32 - Special rules - In general

Current through Supplement No. 393, July, 2024
Both North Dakota Century Code section
				  57-38.1-18 and article IV(18) of
				  North Dakota Century Code section
				  57-59-01 provide that if the other
				  allocation and apportionment provisions of either North Dakota Century Code
				  chapter 57-38.1 or article IV of North Dakota Century Code chapter 57-59 do not
				  fairly represent the extent of the taxpayer's business activity in this state,
				  the taxpayer may petition for or the tax commissioner may require, in respect
				  to all or any part of the taxpayer's business activity, if reasonable:
1. Separate accounting;
2. The exclusion of any one or more of the
				factors;
3. The inclusion of one
				or more additional factors which will fairly represent the taxpayer's business
				activity in this state; or
4. The
				employment of any other method to effectuate an equitable allocation and
				apportionment of the taxpayer's income.
North Dakota Century Code section 58-38.1-18 and article
				  IV(18) of North Dakota Century Code section
				  57-59-01 permit a departure from
				  the other allocation and apportionment provisions of North Dakota Century Code
				  chapters 57-38.1 and 57-59 only in limited and specific cases. North Dakota
				  Century Code section
				  57-38.1-18 or article IV(18) of
				  North Dakota Century Code section
				  57-59-01 may be invoked only in
				  specific cases where unusual fact situations, which ordinarily will be unique
				  and nonrecurring, produce incongruous results under the other apportionment and
				  allocation provisions contained in North Dakota Century Code chapters 57-38.1
				  and 57-59.
In the case of certain industries such as air transportation,
				  rail transportation, ship transportation, trucking, television, radio, motion
				  pictures, and various types of professional athletics, the foregoing sections
				  in respect to the apportionment formula do not set forth appropriate procedures
				  for determining the apportionment factors.
Nothing in North Dakota Century Code section
				  57-38.1-18 and article IV(18) of
				  North Dakota Century Code section
				  57-59-01 or in sections
				  81-03-09-32,
				  81-03-09-33, and
				  81-03-09-34 shall preclude the tax
				  commissioner from establishing appropriate procedures under North Dakota
				  Century Code sections
				  57-38.1-10 through
				  57-38.1-17 and article IV(10)
				  through IV(17) of North Dakota Century Code section
				  57-59-01 for determining the
				  apportionment factors for each such industry, but such procedures shall be
				  applied uniformly.
General Authority:
NDCC
				  57-38-56
Law Implemented:
NDCC
				  57-38.1-18,
				  57-59-01
				  (art.IV(18))
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-03 - Income Taxes and Privilege Taxes Based on Income › Chapter 81-03-09 - Division of Income › Section 81-03-09-33 - Special rules - Property factor

Current through Supplement No. 393, July, 2024
The following special subsections are established in respect
				  to the property factor of the apportionment formula:
1. If the subrents taken into account in
				determining the net annual rental rate under section
				81-03-09-20 produce a negative or
				clearly inaccurate value for any item of property, another method which will
				properly reflect the value of rented property may be required by the tax
				commissioner or requested by the taxpayer.
In no case, however, shall such value be less than an amount
				  which bears the same ratio to the annual rental rate paid by the taxpayer for
				  such property as the fair market value of that portion of the property used by
				  the taxpayer bears to the total fair market value of the rented property.
Example: The taxpayer rents a ten-story building at an annual
				  rental rate of one million dollars. Taxpayer occupies two stories and sublets
				  eight stories for one million dollars a year. The net annual rental rate of the
				  taxpayer must not be less than two-tenths of the taxpayer's annual rental rate
				  for the entire year, or two hundred thousand dollars.
2. If property owned by others is used by the
				taxpayer at no charge or rented by the taxpayer for a nominal rate, the net
				annual rental rate for such property shall be determined on the basis of a
				reasonable market rental rate for such property.
General Authority:
NDCC
				  57-38-56
Law Implemented:
NDCC
				  57-38.1-18,
				  57-59-01
				  (art.IV(18))
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-03 - Income Taxes and Privilege Taxes Based on Income › Chapter 81-03-09 - Division of Income › Section 81-03-09-34 - Special rules - Sales factor

Current through Supplement No. 393, July, 2024
The following special subsections are established in respect
				  to the sales factor of the apportionment formula:
1. Where substantial amounts of gross
				receipts arise from an incidental or occasional sale of a fixed asset used in
				the regular course of the taxpayer's trade or business, such gross receipts
				shall be excluded from the sales factor. For example, gross receipts from the
				sale of a factory or plant will be excluded.
2. Insubstantial amounts of gross receipts
				arising from incidental or occasional transactions or activities may be
				excluded from the sales factor unless such exclusion would materially affect
				the amount of income apportioned to this state. For example, the taxpayer
				ordinarily may include or exclude from the sales factor gross receipts from
				such transactions as the sale of office furniture, business automobiles, and so
				forth.
3. Where the
				income-producing activity in respect to business income from intangible
				personal property can be readily identified, such income is included in the
				denominator of the sales factor and, if the income-producing activity occurs in
				this state, in the numerator of the sales factor as well. For example, usually
				the income-producing activity can be readily identified in respect to interest
				income received on deferred payments on sales of tangible personal property,
				subdivision a of subsection 1 of section
				81-03-09-26, and income from the
				sale, licensing, or other use of intangible personal property, subdivision d of
				subsection 2 of section
				81-03-09-31.
Where business income from intangible property cannot readily
				  be attributed to any particular income-producing activity of the taxpayer, such
				  income cannot be assigned to the numerator of the sales factor for any state
				  and shall be excluded from the denominator of the sales factor. For example,
				  where business income in the form of dividends received on stock, royalties
				  received on patents or copyrights, or interest received on bonds, debentures,
				  or government securities, results from the mere holding of the intangible
				  personal property by the taxpayer, such dividends and interest shall be
				  excluded from the denominator of the sales factor.
General Authority:
NDCC
				  57-38-56
Law Implemented:
NDCC
				  57-38.1-18,
				  57-59-01
				  (art.IV(18))
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-03 - Income Taxes and Privilege Taxes Based on Income › Chapter 81-03-09 - Division of Income › Section 81-03-09-39 - Special rules - Publishing

Current through Supplement No. 393, July, 2024
The following special rules are established with respect to
				  the apportionment of income derived from the publishing, sale, licensing, or
				  other distribution of books, newspapers, magazines, periodicals, trade
				  journals, or other printed material.
1.
In general.
Except as
				specifically modified by this rule, when a person in the business of
				publishing, selling, licensing, or distributing newspapers, magazines,
				periodicals, trade journals, or other printed material has income from sources
				both within and without this state, the amount of business income from sources
				within this state from such business activity must be determined under North
				Dakota Century Code chapter 57-38.1 and the rules adopted under that chapter.
2.
Definitions.
The
				following definitions are applicable to the terms contained in this rule,
				unless the context clearly requires otherwise.
a. "Outer-jurisdictional property" means
				certain types of tangible personal property, such as orbiting satellites,
				undersea transmission cables, and the like, that are owned or rented by the
				taxpayer and used in the business of publishing, licensing, selling, or
				otherwise distributing printed material, but which are not physically located
				in any particular state.
b. "Print
				or printed material" includes the physical embodiment or printed version of any
				thought or expression including a play, story, article, column, or other
				literary, commercial, educational, artistic, or other written or printed work.
				The determination of whether an item is or consists of print or printed
				material must be made without regard to its content. Printed material may take
				the form of a book, newspaper, magazine, periodical, trade journal, or any
				other form of printed matter and may be contained on any medium or property.
c. "Purchaser" and "subscriber"
				mean the individual, residence, business, or other outlet that is the ultimate
				or final recipient of the print or printed material. Neither of such terms
				means or includes a wholesaler or other distributor of print or printed
				material.
d. "Terrestrial
				facility" includes any telephone line, cable, fiber optic, microwave, earth
				station, satellite dish, antennae, or other relay system or device that is used
				to receive, transmit, relay, or carry any data, voice, image, or other
				information that is transmitted from or by any outer-jurisdictional property to
				the ultimate recipient thereof.
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-03 - Income Taxes and Privilege Taxes Based on Income › Chapter 81-03-09.1 - Division of Income for Financial Institutions › Section 81-03-09.1-01 - Special rules - Financial institutions

Current through Supplement No. 393, July, 2024
Except as otherwise specifically provided, a financial
				  institution whose business activity is taxable both within and without this
				  state shall allocate and apportion its net income as provided in this chapter.
				  The provisions of North Dakota Century Code chapter 57-38.1, including section
				  57-38.1-18, not inconsistent with
				  this chapter, shall apply to the allocation and apportionment of the income of
				  a financial institution. All items of nonbusiness income that are not
				  includable in the apportionable income tax base must be allocated under North
				  Dakota Century Code chapter 57-38.1.
General Authority:
NDCC
					 57-38-56
Law Implemented:
NDCC 57-38, 57-38.1,
					 57-38.1-18
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-03 - Income Taxes and Privilege Taxes Based on Income › Chapter 81-03-09.1 - Division of Income for Financial Institutions › Section 81-03-09.1-03 - Apportionment and allocation - Property factor

Current through Supplement No. 393, July, 2024
1. General.
				The property factor is a fraction, the numerator of which is the average value
				of real property and tangible personal property rented to the taxpayer that is
				located or used within this state during the taxable year, the average value of
				the taxpayer's real and tangible personal property owned that is located or
				used within this state during the taxable year, and the average value of the
				taxpayer's loans and credit card receivables that are located within this state
				during the taxable year, and the denominator of which is the average value of
				all property located or used within and without this state during the taxable
				year.
2. Property included. The
				property factor includes only property the income or expenses of which are
				included, or would have been included if not fully depreciated or expensed or
				depreciated or expensed to a nominal amount, in the computation of the
				apportionable income base for the taxable year.
3. Value of property owned by the taxpayer.
a. The value of real property and tangible
				personal property owned by the taxpayer is the original cost or other basis of
				the property for federal income tax purposes without regard to depletion,
				depreciation, or amortization.
b.
				Loans are valued at their outstanding principal balance, without regard to any
				reserve for bad debts. If a loan is charged off in whole or in part for federal
				income tax purposes, the portion of the loan charged off is not outstanding. A
				specifically allocated reserve established pursuant to regulatory or financial
				accounting guidelines which is treated as charged off for federal income tax
				purposes must be treated as charged off for purposes of this section.
c. Credit card receivables are valued at
				their outstanding principal balance, without regard to any reserve for bad
				debts. If a credit card receivable is charged off in whole or in part for
				federal income tax purposes, the portion of the receivable charged off is not
				outstanding.
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-03 - Income Taxes and Privilege Taxes Based on Income › Chapter 81-03-09.1 - Division of Income for Financial Institutions › Section 81-03-09.1-04 - Apportionment and allocation - Receipts factor

Current through Supplement No. 393, July, 2024
1. General.
				The receipts factor is a fraction, the numerator of which is the receipts of
				the taxpayer in this state during the taxable year and the denominator of which
				is the receipts of the taxpayer within and without this state during the
				taxable year. The method of calculating receipts for purposes of the
				denominator is the same as the method used in determining receipts for the
				purpose of the numerator. The receipts factor includes only those receipts
				described in this section which constitute business income and are included in
				the computation of the apportionable income base for the taxable
				year.
2. Receipts from the lease of
				real property. The numerator of the receipts factor includes receipts from the
				lease or rental of real property owned by the taxpayer if the property is
				located within this state or receipts from the sublease of real property if the
				property is located within this state.
3. Receipts from the lease of tangible
				personal property.
a. Except as described in
				subdivision b, the numerator of the receipts factor includes receipts from the
				lease or rental of tangible personal property owned by the taxpayer if the
				property is located within this state when it is first placed in service by the
				lessee.
b. Receipts from the lease
				or rental of transportation property owned by the taxpayer are included in the
				numerator of the receipts factor to the extent that the property is used in
				this state. The extent an aircraft will be deemed to be used in this state and
				the amount of receipts that is to be included in the numerator of this state's
				receipts factor is determined by multiplying all the receipts from the lease or
				rental of the aircraft by a fraction, the numerator of which is the number of
				landings of the aircraft in this state and the denominator of which is the
				total number of landings of the aircraft. If the extent of the use of any
				transportation property within this state cannot be determined, then the
				property will be deemed to be used wholly in the state in which the property
				has its principal base of operations. A motor vehicle will be deemed to be used
				wholly in the state in which it is registered.
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-03 - Income Taxes and Privilege Taxes Based on Income › Chapter 81-03-09.1 - Division of Income for Financial Institutions › Section 81-03-09.1-05 - Apportionment and allocation - Payroll factor

Current through Supplement No. 393, July, 2024
1. General. The
				payroll factor is a fraction, the numerator of which is the total amount paid
				in this state during the taxable year by the taxpayer for compensation and the
				denominator of which is the total compensation paid both within and without
				this state during the taxable year. The payroll factor must include only that
				compensation that is included in the computation of the apportionable income
				tax base for the taxable year.
2.
				Compensation relating to nonbusiness income. The compensation of any employee
				for services or activities that are connected with the production of
				nonbusiness income, meaning income which is not includable in the apportionable
				income base, and payments made to any independent contractor or any other
				person not properly classifiable as an employee must be excluded from both the
				numerator and denominator of the factor.
3. When compensation paid in this state.
				Compensation is paid in this state if any one of the following tests, applied
				consecutively, is met:
a. The employee's
				services are performed entirely within this state.
b. The employee's services are performed both
				within and without the state, but the service performed without the state is
				incidental to the employee's service within the state. The term "incidental"
				means any service that is temporary or transitory in nature or which is
				rendered in connection with an isolated transaction.
c. If the employee's services are performed
				both within and without this state, the employee's compensation must be
				attributed to this state:
(1) If the
				employee's principal base of operations is within this state;
(2) If there is no principal base of
				operations in any state in which some part of the services are performed, but
				the place from which the services are directed or controlled is in this state;
				or
(3) If the principal base of
				operations and the place from which the services are directed or controlled are
				not in any state in which some part of the service is performed but the
				employee's residence is in this state.
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-03 - Income Taxes and Privilege Taxes Based on Income › Chapter 81-03-09.1 - Division of Income for Financial Institutions › Section 81-03-09.1-06 - Taxable years

Current through Supplement No. 393, July, 2024
This chapter is applicable to tax years beginning after
				  December 31, 2012.
General Authority:
NDCC
					 57-38-56
Law Implemented:
NDCC 57-38, 57-38.1,
					 57-38.1-18
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-03 - Income Taxes and Privilege Taxes Based on Income › Chapter 81-03-09.2 - SALES FACTOR WEIGHTING ELECTION › Section 81-03-09.2-01 - Definitions

Current through Supplement No. 393, July, 2024
1. "Affiliated
				corporation" means a corporation whose voting stock is over fifty percent
				owned, directly or indirectly, by another corporation.
2. "Apportionment factor" means the resulting
				computation of the percentage of a taxpayer's business income that is
				assignable to this state.
3.
				"Consolidated return" means a single corporation income tax return that reports
				the tax liability of more than one corporation engaged in business in or having
				sources of income from North Dakota.
4. "Passthrough entity" has the same meaning
				as in North Dakota Century Code section
				57-38-01.
5. "Sales factor" has the same meaning as in
				North Dakota Century Code section
				57-38.1-15.
6. "Sales factor weighting election" means
				the election provided in North Dakota Century Code section
				57-38.1-09 allowing a taxpayer to
				weight its sales factor fifty percent for tax years 2016 and 2017, seventy-five
				percent for tax year 2018, and one hundred percent for tax years 2019 and
				thereafter.
7. "Taxpayer" means a
				person other than a passthrough entity that is required to file a North Dakota
				income tax return.
8. "Unitary
				business" means a group of corporations engaged in a unitary business described
				in chapter 81-03-05.3.
General Authority:
NDCC
					 57-38-56
Law Implemented:
NDCC
					 57-38.1-09
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-03 - Income Taxes and Privilege Taxes Based on Income › Chapter 81-03-09.2 - SALES FACTOR WEIGHTING ELECTION › Section 81-03-09.2-02 - Sales factor weighting election

Current through Supplement No. 393, July, 2024
1. A taxpayer that is a corporation makes a
				sales factor weighting election by checking the sales factor weighting election
				box on its original North Dakota income tax return for the first year to which
				the election applies.
2. A taxpayer
				that is a sole proprietor apportioning income under subsection 5 of North
				Dakota Century Code section
				57-38-04 makes a sales factor
				weighting election by attaching a statement to the taxpayer's individual income
				tax return for the first year to which the election applies.
3. A taxpayer's return making a sales factor
				weighting election for the first year is considered timely if filed by the
				prescribed due date, including extensions.
4. A sales factor weighting election is
				binding for five consecutive tax years. An election made on a tax return for a
				sixth consecutive year constitutes a new five-year election.
5. For any tax year that is not included
				under a sales factor weighting five-year election period, income is apportioned
				using equal weighting of the three factors under subsection 1 of North Dakota
				Century Code section
				57-38.1-09.
General Authority:
NDCC
					 57-38-56
Law Implemented:
NDCC
					 57-38.1-09
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-03 - Income Taxes and Privilege Taxes Based on Income › Chapter 81-03-09.2 - SALES FACTOR WEIGHTING ELECTION › Section 81-03-09.2-03 - Sales factor weighting election applicability

Current through Supplement No. 393, July, 2024
1. If a taxpayer is
				a member of a unitary business, the sales factor weighting election applies to
				each taxpayer in the unitary business.
2. If a taxpayer files a consolidated return,
				the election made on that return applies to all corporations included in that
				return.
3. An affiliated
				corporation is considered to have consented to the sales factor weighting
				election if the corporation becomes a member of the unitary group after the
				group elects to use the sales factor weighting election.
4. If a taxpayer's apportionment factor
				includes its share of a passthrough entity's apportionment factors, the
				taxpayer's sales factor weighting election includes its share of factors from a
				passthrough entity.
General Authority:
NDCC
					 57-38-56
Law Implemented:
NDCC
					 57-38.1-09
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-03 - Income Taxes and Privilege Taxes Based on Income › Chapter 81-03-09.2 - SALES FACTOR WEIGHTING ELECTION › Section 81-03-09.2-04 - Rescission of a sales factor weighting election

Current through Supplement No. 393, July, 2024
1. A sales factor
				weighting election of a taxpayer that has had more than fifty percent of its
				voting stock acquired by a nonaffiliated entity is rescinded.
2. A sales factor weighting election of a
				taxpayer formed due to reorganization or spinoff from an existing taxpayer is
				rescinded if, after the reorganization or spinoff, it is no longer an
				affiliated member of the unitary group.
3. The sales factor weighting election of a
				taxpayer that is completely liquidated is rescinded. The election does not
				carry over to the entity receiving the liquidated assets. This provision does
				not affect the sales factor weighting election made by any taxpayer that
				receives liquidated assets.
4. If a
				taxpayer's sales factor weighting election is rescinded under this section, it
				is not precluded from making a new sales factor weighting election in the first
				tax year following the rescission.
General Authority:
NDCC
					 57-38-56
Law Implemented:
NDCC
					 57-38.1-09
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-03 - Income Taxes and Privilege Taxes Based on Income › Chapter 81-03-09.2 - SALES FACTOR WEIGHTING ELECTION › Section 81-03-09.2-05 - Provisions of income tax laws applicable

Current through Supplement No. 393, July, 2024
Administration of the sales factor weighting election is
				  governed by the provisions in North Dakota Century Code chapters 57-38 and
				  57-38.1, not in conflict with this chapter.
General Authority:
NDCC
					 57-38-56
Law Implemented:
NDCC
					 57-38.1-09
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-03 - Income Taxes and Privilege Taxes Based on Income › Chapter 81-03-09.2 - SALES FACTOR WEIGHTING ELECTION › Section 81-03-09.2-06 - Taxable years

Current through Supplement No. 393, July, 2024
This chapter applies to tax years beginning after December
				  31, 2015.
General Authority:
NDCC
					 57-38-56
Law Implemented:
NDCC
					 57-38.1-09
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-03 - Income Taxes and Privilege Taxes Based on Income › Chapter 81-03-10 - Voluntary Contributions › Section 81-03-10-01 - Designation of overpayment amount

Current through Supplement No. 393, July, 2024
An individual income taxpayer with an available overpayment
				  of tax of at least five dollars may designate a portion of the overpayment, as
				  a voluntary contribution, a minimum of one dollar to either or both of the
				  following:
1. The watchable wildlife
				fund.
2. The trees for North Dakota
				program trust fund.
General Authority:
NDCC
					 57-38-56
Law Implemented:
NDCC
					 57-38-34.3,
					 57-38-35.1
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-03 - Income Taxes and Privilege Taxes Based on Income › Chapter 81-03-10 - Voluntary Contributions › Section 81-03-10-02 - Available overpayment

Current through Supplement No. 393, July, 2024
The procedure by which the taxpayer's return is originally
				  processed by the tax department may result in adjustments to the available
				  overpayment amount computed by the taxpayer for errors on the return; reduction
				  for taxes, including interest and penalty, owed for prior years; or reduction
				  for amounts owed pursuant to North Dakota Century Code chapter 57-38.3.
When the overpayment amount computed by the taxpayer is
				  reduced by the tax department, taxpayer designations will be reduced in the
				  following order, each designated item to be reduced to zero before proceeding
				  to reduce the next item:
1. The amount
				of the overpayment that the taxpayer has designated as voluntary contributions
				to the watchable wildlife fund and the trees for North Dakota program trust
				fund. If the tax department does not reduce the overpayment computed by the
				taxpayer by the total amount of the voluntary contributions, any remaining
				overpayment will be allocated between the funds in the same ratio as the
				designations bear to one another on the taxpayer's return.
2. The amount of the overpayment that the
				taxpayer has designated as a refund.
3. The amount of the overpayment that the
				taxpayer has designated as an estimated tax payment for a succeeding
				year.
General Authority:
NDCC
					 57-38-56
Law Implemented:
NDCC
					 57-38-34.3,
					 57-38-35.1(3),
					 57-38-38(1),
					 57-38-62,
					 57-38.3
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-03 - Income Taxes and Privilege Taxes Based on Income › Chapter 81-03-10 - Voluntary Contributions › Section 81-03-10-03 - Designation for taxpayers owing tax

Current through Supplement No. 393, July, 2024
Taxpayers who have a tax balance due, including penalty and
				  interest, of at least five dollars on their income tax return may designate
				  that an additional amount of at least one dollar be paid to the watchable
				  wildlife fund or to the trees for North Dakota program trust fund by paying the
				  entire balance that is due for both tax and the designations at the same time
				  that the return is filed. Any designations to the watchable wildlife fund or to
				  the trees for North Dakota program trust fund are not obligations enforceable
				  by the tax department. If the amount that is paid with the return does not
				  equal the total of the tax balance due and the amounts designated, the amount
				  of the tax balance due must be paid first and the optional designations must be
				  reduced to the amount paid with the return which is in excess of the tax
				  balance due. The amount paid which is in excess of the tax balance due must be
				  allocated between the funds in the same ratio as the taxpayer designations bear
				  to one another on the taxpayer's return.
General Authority:
NDCC
					 57-38-56
Law Implemented:
NDCC
					 57-38-34.3,
					 57-38-35.1
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-03 - Income Taxes and Privilege Taxes Based on Income › Chapter 81-03-10 - Voluntary Contributions › Section 81-03-10-04 - Taxpayers with no overpayment or balance due

Current through Supplement No. 393, July, 2024
A taxpayer with no overpayment of tax of at least five
				  dollars or tax balance due of at least five dollars, may not use the state
				  income tax return to make voluntary contributions. Taxpayers may make
				  contributions directly to the North Dakota game and fish department for the
				  watchable wildlife fund, or to the North Dakota state forester for the trees
				  for North Dakota program trust fund.
General Authority:
NDCC
					 57-38-56
Law Implemented:
NDCC
					 57-38-34.3,
					 57-38-35.1
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-04.1 - Sales and Use Taxes › Chapter 81-04.1-01 - General Rules › Section 81-04.1-01-01 - Purpose

Current through Supplement No. 393, July, 2024
The retail sales tax is imposed on the gross receipts of
				  retail sales of tangible personal property within North Dakota. The statutes
				  governing sales tax in North Dakota are found in North Dakota Century Code
				  chapter 57-39.2.
The use tax is imposed on the storage, use, or consumption of
				  tangible personal property in North Dakota. If property is purchased at retail
				  for use, storage, or consumption in North Dakota and is not subject to sales
				  tax in North Dakota, it is subject to use tax. The statutes governing use tax
				  in North Dakota are found in North Dakota Century Code chapter 57-40.2.
The purpose of the administrative rules covering sales and
				  use tax in North Dakota is to define and expand upon the relevant statutes in
				  the North Dakota Century Code. Therefore, these rules are to be used in
				  conjunction with relevant statutes.
General Authority: NDCC
					 57-39.2-19
Law Implemented: NDCC
					 57-39.2-01
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-04.1 - Sales and Use Taxes › Chapter 81-04.1-01 - General Rules › Section 81-04.1-01-02

Current through Supplement No. 393, July, 2024
General Authority: NDCC
					 57-39.2-19
Law Implemented: NDCC
					 57-39.2-01,
					 57-39.2-23
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-04.1 - Sales and Use Taxes › Chapter 81-04.1-01 - General Rules › Section 81-04.1-01-03.1 - Definitions

Current through Supplement No. 393, July, 2024
Any person having nexus in North Dakota and making taxable
				  sales in or making taxable sales having a destination in North Dakota must
				  obtain a North Dakota sales and use tax permit from the tax commissioner and
				  collect and remit tax on these sales.
For purposes of implementing subsection 8 of North Dakota
				  Century Code section
				  57-39.2-01 and subsection 6 of
				  North Dakota Century Code section
				  57-40.2-01, unless the context
				  otherwise requires:
1. "Advertisement" means any message by which a retailer
				  solicits retail sales of tangible personal property. It includes but is not
				  limited to:
a. Each transmittance, by United States mail, common carrier
				  or otherwise, of a printed sales solicitation message in the form of a bulk
				  mailing or bulk delivery, a sales catalog, brochure, advertising flier, billing
				  or package insert, or similar publication or device.
b. Each transmittance of a sales solicitation message by
				  space advertising in a newspaper, magazine, or other publication, which is
				  local, regional, or national in nature.
c. Each transmittance of a sales solicitation message by
				  radio, television, telephone, telegraph, computer data base, or by cable,
				  optic, microwave or other electronic means, or by any other communications
				  means.
2. "Destination" means the location to which the delivery of
				  tangible personal property is made by a retailer or the retailer's agent.
3. "Regular or systematic solicitation" means three or more
				  separate transmittances of any advertisement or advertisements during a testing
				  period.
4. "Separate transmittance" means any transmittance of an
				  advertisement during any twenty-four-hour period.
5. "Solicitation" means:
a. Offering, by advertisement, to make a taxable sale with a
				  destination in North Dakota.
b. Inviting offers to purchase tangible personal property for
				  delivery in North Dakota.
6. "Taxable sale" means a sale made by a retailer or a
				  retailer maintaining a place of business in this state to purchasers for final
				  use or consumption and not for resale or processing.
7. "Testing period", with respect to the determination of
				  whether a person is required to obtain a permit and collect use tax as a
				  retailer for tax periods commencing on or after the effective date of this
				  section, means the twelve-month period ending on September thirtieth of the
				  preceding calendar year.
General Authority: NDCC
					 57-39.2-19,
					 57-40.2-13
Law Implemented: NDCC
					 57-39.2-19,
					 57-40.2-01
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-04.1 - Sales and Use Taxes › Chapter 81-04.1-01 - General Rules › Section 81-04.1 -01 -04 - Permits

Current through Supplement No. 393, July, 2024
A sales tax permit will not be issued to a person not engaged
				  in a retail business for the purpose of permitting that person to purchase at
				  wholesale or to purchase without payment of sales tax to the seller.
General Authority: NDCC
					 57-39.2-19
Law Implemented: NDCC
					 57-39.2-14
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-04.1 - Sales and Use Taxes › Chapter 81-04.1-01 - General Rules › Section 81-04.1-01-05 - Direct payment permits

Current through Supplement No. 393, July, 2024
The direct payment permit authorizes the applicant to make
				  direct payment of sales or use tax to the tax commissioner.
An applicant electing to pay taxes directly to the tax
				  commissioner must issue a direct payment certificate to the retailer in the
				  form prescribed by the tax commissioner. The certificate exempts the retailer
				  from liability for sales or use tax and obligates the applicant to pay taxes
				  directly to the tax commissioner.
1.
				To qualify for a direct payment permit, a business must demonstrate to the
				satisfaction of the tax commissioner that:
a.
				The person purchases substantial amounts of tangible personal property for
				business use under circumstances which make it difficult or impractical at the
				time of purchase to determine whether such property is subject to sales or use
				tax.
b. The person holds or has
				applied for a sales and use tax permit.
c. The direct payment method will materially
				reduce the administrative work of collecting the tax.
d. The firm's accounting system will clearly
				reflect the proper amount of tax due.
e. The firm makes taxable purchases in
				sufficient volume to justify the expense of regular tax department audits.
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-04.1 - Sales and Use Taxes › Chapter 81-04.1-01 - General Rules › Section 81-04.1-01-06 - Sale of business - Permit not transferable

Current through Supplement No. 393, July, 2024
When the holder of a sales tax permit sells the business to
				  another person, all sales tax for which the holder is liable is due
				  immediately. The holder must immediately notify the tax commissioner and
				  surrender the holder's permit for cancellation. Within fifteen days, the holder
				  must make a final sales tax return and remit all sales tax due. The purchaser
				  of the business must make application for a new permit in the purchaser's own
				  name.
If the ownership status of a business which holds a sales tax
				  permit changes from one type of business ownership to another, the new owner
				  must apply for a new permit.
When a corporation is sold, or when new corporate officers
				  are added or replaced, the tax commissioner must be notified of these changes
				  although no new sales tax permit is required. A new permit is required if one
				  or more partners enter or leave a partnership.
General Authority: NDCC
					 57-39.2-19
Law Implemented: NDCC
					 57-39.2-01,
					 57-39.2-02.1,
					 57-39.2-10,
					 57-39.2-11,
					 57-39.2-14,
					 57-39.2-20
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-04.1 - Sales and Use Taxes › Chapter 81-04.1-01 - General Rules › Section 81-04.1-01-07 - Change of location

Current through Supplement No. 393, July, 2024
When a holder of a retail sales tax permit changes the
				  business location of the retail business without changing the nature of the
				  business, the permitholder must notify the tax commissioner of the change of
				  location and of the new address. Upon notification, the tax commissioner will
				  issue without charge a corrected sales tax permit showing the new business
				  address.
General Authority: NDCC
					 57-39.2-19
Law Implemented: NDCC
					 57-39.2-01,
					 57-39.2-14
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-04.1 - Sales and Use Taxes › Chapter 81-04.1-01 - General Rules › Section 81-04.1-01-08 - Deduction for administrative expense

Current through Supplement No. 393, July, 2024
Compensation for sales or use tax permitholders is applied as
				  follows:
1. A sales and use tax
				permitholder registered to report and remit sales, use, or gross receipts tax
				under North Dakota Century Code chapter 57-39.2, 57-39.5, 57-39.6, or 57-40.2
				may deduct and retain one and one-half percent of the tax due, but this
				deduction may not exceed one hundred ten dollars per return.
2. A sales and use tax permitholder that is a
				remote seller, or a certified service provider assigned by the qualifying
				permitholder, is allowed to deduct and retain up to one and one-half percent of
				the tax due or such lower percentage as agreed in the compensation or monetary
				allowance agreement approved by the streamlined sales and use tax governing
				board. For purposes of this subsection, "remote seller" means a retailer that
				does not have adequate physical presence to establish nexus in this state for
				sales tax purposes.
Qualified sales or use tax permitholders, including
				  permitholders and certified service providers who pay tax due under chapter
				  57-39.4, who fail to file the forms on time, or fail to pay the tax due on
				  time, forfeit the one and one-half percent compensation for
				  expenses.
General Authority:
NDCC
					 57-39.2-19
Law Implemented:
NDCC
					 57-39.2-12.1,
					 57-40.2-07.1
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-04.1 - Sales and Use Taxes › Chapter 81-04.1-01 - General Rules › Section 81-04.1-01-08.1 - Monthly sales tax returns

Current through Supplement No. 393, July, 2024
1. A sales and use tax permitholder having
				taxable sales and purchases equal to or exceeding three hundred thirty-three
				thousand dollars for the preceding calendar year shall file sales and use tax
				returns and pay the tax due monthly. All returns and tax payments are due on or
				before the last day of the month following the reporting period.
2. Returns required to be filed monthly under
				section 1 must be filed by an electronic method approved by the tax
				commissioner.
3. All returns filed
				under North Dakota Century Code chapters 57-39.2, 57-39.5, 57-39.6, and 57-40.2
				will be reviewed by the tax commissioner each calendar year to determine if new
				sales or use tax permitholders meet the monthly filing requirement and to
				determine if sales or use tax permitholders who have filed monthly returns may
				revert to quarterly filing status. Changes in filing status as a result of the
				calendar year reviews are effective on or after July first of the following
				year.
General Authority:
NDCC
					 57-39.2-19
Law Implemented:
NDCC
					 57-39.2-12,
					 57-40.2-07