reglab/statecodes huggingface dataset:
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-04.1 - Sales and Use Taxes › Chapter 81-04.1-01 - General Rules › Section 81-04.1-01-09 - Deposits or prepayments on purchase price of tangible personal property

Current through Supplement No. 393, July, 2024
When retailers of tangible personal property accept deposits
				  from customers for goods to which the purchaser obtains possession only upon
				  payment of the full purchase price, if there is a contract to sell specific
				  goods, title passes to the buyer when the parties to the contract intend it to
				  be transferred, with consideration of the terms of the contract, the conduct of
				  the parties, usage of trade, and the circumstances of the case.
If the buyer makes a deposit on the purchase price of
				  specific goods, and the seller assigns those goods to the sale, title to the
				  goods passes and the sale is made at the time the contract is entered into
				  irrespective of the fact that the full amount of the purchase price may not
				  have been paid by the buyer. The prepayment or deposit must be included in the
				  measure of the seller's tax at that time.
If no specific goods are selected by the buyer or assigned to
				  the sale by the seller, title to the goods does not pass until the buyer
				  selects specific goods, and they are assigned to the sale by the seller. Here
				  the seller merely acts as a depository of funds left with the seller by the
				  buyer, and such prepayments or deposits are not receipts from a sale of
				  tangible personal property until a sale is actually made. In such case, the
				  sale takes place when possession of the goods is delivered to the buyer, and
				  the seller must report as gross receipts from the sale the total amount of the
				  purchase price as of the time of sale.
General Authority: NDCC
					 57-39.2-19
Law Implemented: NDCC
					 57-39.2-01,
					 57-39.2-02.1,
					 57-39.2-03.2,
					 57-39.2-03.3,
					 57-39.2-10,
					 57-39.2-11,
					 57-39.2-12,
					 57-39.2-12.1
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-04.1 - Sales and Use Taxes › Chapter 81-04.1-01 - General Rules › Section 81-04.1-01-09.1 - Effect of rate changes

Current through Supplement No. 393, July, 2024
Except for contracts for the construction of highways, roads,
				  bridges, and buildings, when an unconditional contract to sell tangible
				  personal property is entered into prior to the effective date of a rate change,
				  and the goods are delivered after that date, the new rates are applied to the
				  transaction. When an unconditional contract to sell tangible personal property
				  is entered into prior to the effective date, and the goods are delivered prior
				  to that date, the tax rates in effect for the prior period are applied to the
				  transaction.
When a contract to sell tangible personal property contains a
				  specific provision to pass title prior to delivery of the goods, the rates in
				  effect at the time title transfers are applied.
Lessors who lease tangible personal property are required to
				  collect tax from their lessees at the rate in effect at the time the lease or
				  rental payment is due, including payments on contracts entered into prior to a
				  rate change.
For services covering a period starting before and ending
				  after the effective date of a rate increase, the new rate shall apply to the
				  first billing period starting on or after the effective date. For a rate
				  decrease, the new rate shall apply to bills rendered on or after the effective
				  date.
General Authority: NDCC
					 57-39.2-19,
					 57-40.2-13
Law Implemented: NDCC
					 57-39.2-01,
					 57-39.2-02.1,
					 57-39.2-10,
					 57-39.4-30,
					 57-40.2-01,
					 57-40.2-02.1,
					 57-40.2-03.3,
					 57-40.2-09
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-04.1 - Sales and Use Taxes › Chapter 81-04.1-01 - General Rules › Section 81-04.1-01-10 - Freight, delivery, and other transportation charges

Current through Supplement No. 393, July, 2024
Freight, delivery, and other transportation charges are
				  considered part of the selling price. If the sale is taxable, the freight,
				  delivery, and other transportation charges that are part of the sale and billed
				  by the seller are taxable. If the product being delivered is exempt from sales
				  tax, then freight, delivery, and other transportation charges are also exempt.
				  Delivery charges billed directly to the customer by delivery services that are
				  not making the sale of tangible personal property remain exempt from sales and
				  use tax.
General Authority: NDCC
					 57-39.2-19,
					 57-40.2-13
Law Implemented: NDCC
					 57-39.2-01,
					 57-39.2-02.1,
					 57-39.2-03.2,
					 57-39.2-04,
					 57-40.2-01,
					 57-40.2-02.1,
					 57-40.2-04,
					 57-40.2-13
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-04.1 - Sales and Use Taxes › Chapter 81-04.1-01 - General Rules › Section 81-04.1-01-11 - Finance or carrying charges

Current through Supplement No. 393, July, 2024
Finance, carrying, and interest charges are not taxable if
				  separately agreed upon by the buyer and the seller and if separately billed by
				  the seller to the buyer.
General Authority: NDCC
					 57-39.2-19
Law Implemented: NDCC
					 57-39.2-01,
					 57-39.2-02.1,
					 57-39.2-04
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-04.1 - Sales and Use Taxes › Chapter 81-04.1-01 - General Rules › Section 81-04.1-01-12 - Processing

Current through Supplement No. 393, July, 2024
The nonreturnable containers in which tangible personal
				  property is sold, when sold for processing, are exempt from sales tax if it is
				  intended that such containers become an integral, ingredient, or component part
				  of tangible personal property intended to be sold ultimately at retail.
				  Receipts from the sale of tangible personal property to fabricators,
				  manufacturers, producers, or processors which will not actually become an
				  integral, ingredient, or component part of the product produced are taxable.
The sale of an item of tangible personal property for the
				  purpose of incorporating it in or attaching it to real property is a sale of
				  tangible personal property for a purpose other than for processing and is
				  taxable sold to a contractor or subcontractor for attachment to real property
				  situated outside of North Dakota if taxable in state of attachment.
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 81-04.1-01-13 - Containers, wrapping materials, cartons, string

Current through Supplement No. 393, July, 2024
Receipts from the sale of containers, labels, cartons,
				  packing cases, wrapping paper, wrapping twine, bags, bottles, shipping cases,
				  and similar articles and receptacles sold to manufacturers, producers,
				  wholesalers, retailers, or jobbers, which are used as containers of tangible
				  personal property and are sold either for resale or at retail, are not subject
				  to sales tax if the charge made for the property sold includes the container
				  and title to the container passes to the purchaser with the merchandise sold.
Receipts from the sale of containers, labels, and cartons
				  sold to those businesses rendering service are subject to the sales tax since
				  these businesses are the users or consumers of such items, and sales to them
				  are taxable.
Containers used for the purpose of delivering tangible
				  personal property sold to customers, which may be returned to the seller, are
				  not subject to sales tax when sold to the customer. The seller consumes or uses
				  the containers in the seller's business, and the sale to the seller of such
				  containers is subject to the tax. A deposit made by or required of the customer
				  to secure the return of the container is not regarded as a retail sale, and it
				  is not subject to the sales tax.
General Authority: NDCC
					 57-39.2-19
Law Implemented: NDCC
					 57-39.2-01,
					 57-39.2-02.1,
					 57-39.2-03.2,
					 57-39.2-03.3,
					 57-39.2-04
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-04.1 - Sales and Use Taxes › Chapter 81-04.1-01 - General Rules › Section 81-04.1-01-14 - Receipts from sales of taxable materials, supplies, and services

Current through Supplement No. 393, July, 2024
Receipts from sales of taxable materials, supplies, and
				  services to retail stores for their own use in maintenance, advertising, and
				  office use are not for resale and are subject to sales tax.
The retailer must pay tax on all items for final use when
				  purchasing them from the supplier. If the retailer fails to pay the tax when
				  buying these items, the retailer must report them on the retailer's regular
				  sales and use tax return for the filing period in which the items were
				  purchased.
General Authority: NDCC
					 57-39.2-19
Law Implemented: NDCC
					 57-39.2-01,
					 57-39.2-02.1,
					 57-39.2-03.2,
					 57-39.2-07
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-04.1 - Sales and Use Taxes › Chapter 81-04.1-01 - General Rules › Section 81-04.1-01-15 - Certificate of resale

Current through Supplement No. 393, July, 2024
Receipts from the sale of tangible personal property for the
				  purpose of resale by the purchaser are not subject to sales tax if the buyer
				  furnishes a North Dakota resale certificate, the multistate tax commission
				  uniform sales and use tax certificate, or a certificate of exemption authorized
				  by the streamlined sales tax agreement. A new certificate is not needed for
				  each sale, but the seller must have a signed certificate from all customers who
				  buy for resale.
If a seller claims a sale as a sale for resale, and it is
				  determined that such sale is not exempt, any tax and penalty due thereon will
				  be collected from the buyer.
Whenever a person submits a false certificate to a seller,
				  the person submitting the false certificate is liable for any tax and penalties
				  which attach on the sale.
General Authority: NDCC
					 57-39.2-19
Law Implemented: NDCC
					 57-39.2-01,
					 57-39.2-02.1,
					 57-39.2-03.2,
					 57-39.2-03.3,
					 57-39.2-04,
					 57-39.2-10,
					 57-39.4-18
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-04.1 - Sales and Use Taxes › Chapter 81-04.1-01 - General Rules › Section 81-04.1-01-16 - Casual or occasional sales

Current through Supplement No. 393, July, 2024
Casual or occasional sales made by an individual are not
				  subject to sales tax. Sales made in the course of a regularly conducted
				  business are subject to sales tax. The following are retailers who must collect
				  and remit sales tax:
1. The
				auctioneer who auctions the belongings of several undisclosed individuals at a
				public auction.
2. Persons who buy
				antiques from others and offer them for sale at a public auction or through a
				private sale.
3. Persons who
				conduct permanent rummage sales through which they dispose of the property of
				others.
A retailer may not claim a casual sale if the property sold
				  is similar to property sold by the retailer in the regular course of business.
A person selling one's own products occasionally is making
				  casual sales, and such sales are not taxable. Sales of such number, volume, or
				  frequency as to indicate that the sale is not a casual or isolated one are
				  subject to tax.
The sale of capital assets, such as equipment, machinery, and
				  furnishings which are not sold as inventory, shall be deemed outside the
				  regular course of a business and deemed to be a casual sale and no sales tax is
				  due. If the business being sold is a retail business and the business will be
				  sold in its entirety by the owner, the inventory is considered to be sold for
				  resale while the sale of the other business assets is considered to be a casual
				  sale. Sale of a retail inventory through auction is subject to section
				  81-04.1-04-11.
General Authority: NDCC
					 57-39.2-19
Law Implemented: NDCC
					 57-39.2-01,
					 57-39.2-02.1,
					 57-39.2-03.2,
					 57-39.2-03.3,
					 57-39.2-04,
					 57-39.2-20,
					 57-40.3
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-04.1 - Sales and Use Taxes › Chapter 81-04.1-01 - General Rules › Section 81-04.1-01-17 - Used or secondhand tangible personal property

Current through Supplement No. 393, July, 2024
Used or secondhand tangible personal property in the form of
				  goods, wares, and merchandise is taxable in the same manner as new property
				  would be taxed, unless the sale is a casual or isolated one.
General Authority: NDCC
					 57-39.2-19
Law Implemented: NDCC
					 57-39.2-01,
					 57-39.2-02.1,
					 57-39.2-04,
					 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 81-04.1-01-18 - Goods on consignment

Current through Supplement No. 393, July, 2024
Persons engaged in the business of selling tangible personal
				  property of others are retailers. Sales are subject to sales tax if such
				  property is sold in the retailer's place of business or is sold by the retailer
				  for an undisclosed principal. This also applies to an auctioneer who sells
				  tangible personal property belonging to a retailer, no matter where the sale is
				  located.
General Authority: NDCC
					 57-39.2-19
Law Implemented: NDCC
					 57-39.2-01,
					 57-39.2-02.1,
					 57-39.2-03.2,
					 57-39.2-03.3
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-04.1 - Sales and Use Taxes › Chapter 81-04.1-01 - General Rules › Section 81-04.1-01-19 - Sale of traded-in property

Current through Supplement No. 393, July, 2024
When one article is traded in on another article, the sales
				  tax applies only on the difference in value between the two articles. The
				  secondhand article is subject to sales tax when resold.
Whenever property not subject to sales tax or to motor
				  vehicle excise tax is taken as part consideration of the purchase price, the
				  purchaser is required to pay sales tax on the full purchase price.
When a used manufactured home is traded in for other tangible
				  personal property, sales tax applies on the full purchase price with no
				  deduction for the value of the trade-in.
When used farm machinery is traded in for new farm machinery
				  or other tangible personal property, farm machinery gross receipts tax or sales
				  tax applies on the net selling price after deduction for the value of the
				  trade-in.
General Authority:
NDCC
					 57-39.2-19
Law Implemented:
NDCC
					 57-39.2-01,
					 57-39.2-02.1,
					 57-39.5-01.1
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-04.1 - Sales and Use Taxes › Chapter 81-04.1-01 - General Rules › Section 81-04.1-01-20 - Repossessed and returned property

Current through Supplement No. 393, July, 2024
When tangible personal property which has been repossessed by
				  the original seller or by a finance company is resold, the entire gross
				  receipts from such sales are taxable.
When retailers sell tangible personal property on time
				  payments, and it becomes necessary for the retailer to repossess the tangible
				  personal property, the transaction is handled as follows:
1. If the retailer previously included the
				total selling price of the tangible personal property in the retailer's gross
				sales and remitted tax to the tax commissioner but did not collect sales tax
				from the buyer, the retailer may enter a credit in the amount of the unpaid
				balance of the original sale. This credit is deductible by the retailer
				regardless of whether or not the retailer has assigned the installment
				contract. If the retailer assigns the contract, it must be assigned subject to
				an agreement to repurchase it in the event of default by the purchaser under
				the contract or subject to a guarantee that the payment under the contract will
				be made.
2. If the retailer
				collected and remitted the full amount of sales tax on the full sales price at
				the time of sale, the retailer is not entitled to take a deduction for the
				goods returned unless the tax is returned to the purchaser on the unpaid
				balance.
3. If the retailer
				included in gross receipts only the amount of cash actually received from the
				sale and did not collect full sales tax from the customer, no credit for return
				of the repossessed property to the retailer's stock will be allowed.
When goods are returned to a retailer, and the purchase price
				  is returned to the buyer, the retailer may claim a credit on a subsequent sales
				  and use tax return for the amount of the sale claimed on a prior return if the
				  previously paid tax is returned to the customer.
General Authority: NDCC
					 57-39.2-19
Law Implemented: NDCC
					 57-39.2-01,
					 57-39.2-02.1,
					 57-39.2-05,
					 57-39.2-24,
					 57-39.2-27
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-04.1 - Sales and Use Taxes › Chapter 81-04.1-01 - General Rules › Section 81-04.1-01-21 - Articles made to order

Current through Supplement No. 393, July, 2024
When manufacturers, fabricators, or retailers agree to
				  furnish the material and fabricate articles of tangible personal property, the
				  total receipts from the sale of such articles are subject to sales tax. These
				  businesses may not deduct labor or service costs of fabrication or production
				  from the sales tax base even though such charges are billed to customers apart
				  from charges for materials.
General Authority: NDCC
					 57-39.2-19
Law Implemented: NDCC
					 57-39.2-01,
					 57-39.2-02.1
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-04.1 - Sales and Use Taxes › Chapter 81-04.1-01 - General Rules › Section 81-04.1-01-22 - Services

Current through Supplement No. 393, July, 2024
Personal and professional services are not subject to sales
				  tax, but materials and supplies used solely in rendering services are subject
				  to sales tax when purchased. Materials and supplies which may be used either in
				  rendering service or sold at retail may be purchased for resale, and sales tax
				  must be collected when these items are sold at retail. The portion of these
				  materials and supplies sold separately to the customer is subject to sales tax
				  and must be included in the sales and use tax report as gross sales. The
				  portion of these materials and supplies used and consumed in rendering service
				  is taxable. The purchase cost must be included as use tax on the sales and use
				  tax return of the person rendering the service.
If taxable materials and supplies are purchased from a
				  supplier holding a North Dakota sales and use tax permit, sales tax must be
				  paid to the supplier, but if taxable materials and supplies are purchased from
				  an out-of-state supplier who does not collect North Dakota sales tax, the use
				  tax must be remitted to the tax commissioner by the purchaser.
Persons engaged in the business of repairing, altering,
				  restoring, or cleaning of tangible personal property belonging to others must
				  collect sales tax on the itemized charge for tangible personal property used in
				  the repair. Separately stated charges for repair labor are not subject to sales
				  tax. If the charge for tangible personal property used in the repair is not
				  itemized, the repairer must pay sales or use tax on the cost of the repair
				  parts.
General Authority: NDCC
					 57-39.2-19,
					 57-40.2-13
Law Implemented: NDCC
					 57-39.2-01,
					 57-39.2-02.1,
					 57-39.2-04,
					 57-39.2-11,
					 57-39.2-14,
					 57-40.2-01,
					 57-40.2-02.1,
					 57-40.2-05,
					 57-40.2-06,
					 57-40.2-13
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-04.1 - Sales and Use Taxes › Chapter 81-04.1-01 - General Rules › Section 81-04.1-01-23.3 - Computer and telecommunications equipment

Current through Supplement No. 393, July, 2024
1. Purchases
				of computer and telecommunications equipment intended for a new primary sector
				business or a physical or economic expansion of a primary sector business are
				exempt from sales tax. As used in this section:
a. "Computer equipment" means stored program
				processing equipment and all devices fastened to it by means of signal cables
				or any communication medium that serves the function of a signal cable.
				Examples of devices fastened by a signal cable or other communication medium
				include terminals, card or tape punchers, printers, optical readers, display
				units or monitors, document sorters, and card readers.
b. "Primary sector business" means a business
				that has been certified by the North Dakota department of commerce division of
				economic development and finance as a primary sector business.
c. "Telecommunications equipment" means
				tangible personal property used to provide a communication service, as defined
				by section
				81-04.1-04-41.1.
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-04.1 - Sales and Use Taxes › Chapter 81-04.1-01 - General Rules › Section 81-04.1-01-24

Current through Supplement No. 393, July, 2024
General Authority: NDCC
					 57-39.2-19
Law Implemented: NDCC
					 57-39.2-01,
					 57-39.2-02.1,
					 57-39.2-03.2
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-04.1 - Sales and Use Taxes › Chapter 81-04.1-01 - General Rules › Section 81-04.1-01-25 - Credit sales and bad debts

Current through Supplement No. 393, July, 2024
Conditional sales contracts or other forms of sales, if the
				  payment of the principal sum is to be extended over a period longer than sixty
				  days from the date of the sale, do not include credit sales for which the
				  purchaser is billed in full in intervals of less than sixty consecutive days
				  even though the credit terms may allow the purchaser to extend the principal
				  payments beyond sixty consecutive days.
When a retailer sells or renegotiates a conditional sales
				  contract or other form of credit for which the principal payment is to be
				  extended over a period longer than sixty days to a third party, the retailer is
				  required to remit the full amount of tax due on the outstanding credit balance.
Bad debts may be deducted from gross receipts when the
				  tangible personal property is sold on credit and the following facts are fully
				  shown:
1. That the account has not
				been paid and has been found to be worthless.
2. That the amount was previously included in
				the gross receipts and sales tax collected and remitted by the retailer.
3. That the bad debt is written
				off as uncollectible in the retailer's books.
When filing responsibilities have been assumed by a certified
				  service provider, the certified service provider may claim, on behalf of the
				  retailer, any bad debt provided by this section. The certified service provider
				  must credit or refund the full amount of any bad debt allowance or refund
				  received on behalf of the retailer.
The books and records of the party claiming the bad debt must
				  contain the customers' names, addresses, amount charged off, and the period in
				  which the sale was included in the holder's taxable sales, and be available for
				  review by the tax commissioner upon request.
General Authority: NDCC
					 57-39.2-19
Law Implemented: NDCC
					 57-39.2-01,
					 57-39.2-02.1,
					 57-39.2-03.2,
					 57-39.2-05,
					 57-39.2-10,
					 57-39.2-11,
					 57-39.4-21
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-04.1 - Sales and Use Taxes › Chapter 81-04.1-01 - General Rules › Section 81-04.1-01-26 - Purchases subject to use tax

Current through Supplement No. 393, July, 2024
When a retailer takes merchandise from stock for personal use
				  or for a gift, the retailer is responsible for the use tax based on the cost of
				  the merchandise. Retailers purchasing items for maintenance, advertising, and
				  office use are subject to sales tax and must pay tax on all items for final use
				  when purchasing them from the supplier. If the retailer fails to pay tax when
				  buying these items, the retailer must report them on the quarterly sales or use
				  tax return for the filing period in which the items were purchased.
A purchaser is required to pay any use tax to the seller if
				  the seller holds a North Dakota sales and use tax permit. If the seller does
				  not hold a permit, the purchaser is required to remit the tax directly to the
				  tax commissioner.
General Authority: NDCC
					 57-39.2-19,
					 57-40.2-13
Law Implemented: NDCC
					 57-39.2-01,
					 57-39.2-02.1,
					 57-39.2-03.2,
					 57-39.2-03.3,
					 57-40.2-01,
					 57-40.2-02.1,
					 57-40.2-03.2,
					 57-40.2-05,
					 57-40.2-06,
					 57-40.2-07,
					 57-40.2-09,
					 57-40.2-13
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-04.1 - Sales and Use Taxes › Chapter 81-04.1-01 - General Rules › Section 81-04.1-01-28 - Coupons

Current through Supplement No. 393, July, 2024
Retailers shall include in their taxable receipts the
				  exchange value of coupons or redemption certificates taken from customers, if
				  such coupons or certificates are redeemed by a wholesaler or others.
The exchange value of coupons or certificates issued by the
				  retailer as store coupons, and not redeemable by wholesalers or others, must be
				  treated as cash discounts not subject to sales tax.
Sales of gift certificates or other forms of credit which may
				  be redeemed by the holder for equivalent cash value are deposits or prepayments
				  and are not subject to tax when sold. However, the value of these certificates
				  is taxable when redeemed if they are redeemed for taxable goods or services.
General Authority: NDCC
					 57-39.2-19
Law Implemented: NDCC
					 57-39.2-01(3),
					 57-39.2-01(7),
					 57-39.2-02.1
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-04.1 - Sales and Use Taxes › Chapter 81-04.1-01 - General Rules › Section 81-04.1-01-29 - Calculation of tax

Current through Supplement No. 393, July, 2024
The sales or use tax liability must be computed by
				  multiplying the sales price of each taxable item or total purchase amount by
				  the appropriate tax rate percentage. If the tax results in a fraction of a
				  cent, the tax liability shall be carried to the third decimal place and rounded
				  to the nearest whole cent. If the third decimal place is four or less, round
				  down, and if the third decimal place is greater than four, round up.
General Authority: NDCC
					 57-39.2-19
Law Implemented: NDCC
					 57-39.2-08.2,
					 57-39.4-25
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-04.1 - Sales and Use Taxes › Chapter 81-04.1-02 - Sales to Government Entities › Section 81-04.1-02-01 - Sales to the state of North Dakota, any subdivisions of North Dakota, and sales by municipal corporations

Current through Supplement No. 393, July, 2024
Gross receipts from sales of tangible personal property or
				  from furnishing taxable services to this state or any of its political
				  subdivisions, departments, agencies, or institutions are exempt from sales tax.
Retail sales or furnishing of services to the public by any
				  state, subdivisions, departments, or institutions of any state, are subject to
				  sales tax.
General Authority: NDCC
					 57-39.2-19,
					 57-40.2-13; S.L. 1993, Ch. 561
Law Implemented: NDCC
					 57-39.2-01,
					 57-39.2-02.1,
					 57-39.2-03.2,
					 57-39.2-03.3,
					 57-39.2-04; S.L. 1993, ch.
					 561
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-04.1 - Sales and Use Taxes › Chapter 81-04.1-02 - Sales to Government Entities › Section 81-04.1-02-02 - Contracts with governments

Current through Supplement No. 393, July, 2024
A contractor performing contracts for the United States
				  government, this state, counties, cities, villages, or any other municipal
				  corporation in this state is not exempt from payment of the sales or use tax on
				  materials and supplies used by the contractor to carry out the contracts.
General Authority: NDCC
					 57-39.2-19,
					 57-40.2-13
Law Implemented: NDCC
					 57-39.2-01,
					 57-39.2-02.1,
					 57-39.2-04,
					 57-39.2-10,
					 57-39.2-20,
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-04.1 - Sales and Use Taxes › Chapter 81-04.1-02 - Sales to Government Entities › Section 81-04.1-02-03 - Tangible personal property purchases - United States government

Current through Supplement No. 393, July, 2024
Except as provided by Congress, the United States government
				  is not required to collect sales tax when making a sale. However, the purchaser
				  of taxable tangible personal property or services from the United States
				  government must report and remit the sales or use tax.
General Authority: NDCC
					 57-39.2-19,
					 57-40.2-13
Law Implemented: NDCC
					 57-39.2-01,
					 57-39.2-02.1,
					 57-39.2-03.2,
					 57-39.2-03.3,
					 57-39.2-04,
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-04.1 - Sales and Use Taxes › Chapter 81-04.1-02 - Sales to Government Entities › Section 81-04.1-02-04 - Sales to federal corporations

Current through Supplement No. 393, July, 2024
Federal statutes creating the following corporations contain
				  provisions which have been construed by the United States supreme court as
				  exempt from sales or use tax.
1.
				Federal land banks.
2. Federal
				deposit insurance corporation.
3.
				Homeowners loan corporation.
4.
				Federal farm mortgage corporation.
5. Federal home loan banks.
6. Reconstruction-finance corporation.
7. American national red cross.
8. Federal credit unions.
General Authority: NDCC
					 57-39.2-19
Law Implemented: NDCC
					 57-39.2-01,
					 57-39.2-02.1,
					 57-39.2-04,
					 57-40.2-04
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-04.1 - Sales and Use Taxes › Chapter 81-04.1-03 - Miscellaneous Sales › Section 81-04.1-03-01 - Sales to American Indians - Sales on an Indian reservation

Current through Supplement No. 393, July, 2024
An Indian retailer whose place of business is on an Indian
				  reservation in this state is not required to hold a North Dakota sales tax
				  permit or to collect North Dakota sales tax on sales to any customer.
A non-Indian retailer whose place of business is on an Indian
				  reservation cannot collect sales tax on sales to enrolled Indian customers but
				  must collect and remit North Dakota sales tax on all sales to non-Indian
				  customers.
Any retailer whose place of business is outside an Indian
				  reservation may exempt sales made by delivery to an enrolled Indian customer
				  living on an Indian reservation if the retailer maintains adequate records
				  supporting the exempt status of the sale.
All sales to American Indians outside of an Indian
				  reservation are subject to sales tax.
General Authority: NDCC
					 57-39.2-19
Law Implemented: NDCC
					 57-39.2-01,
					 57-39.2-02.1,
					 57-39.2-04
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-04.1 - Sales and Use Taxes › Chapter 81-04.1-03 - Miscellaneous Sales › Section 81-04.1-03-01.1 - State-tribal tax administration agreement - Effect on other rules

Current through Supplement No. 393, July, 2024
If an agreement is in effect between the state and a Native
				  American tribal government under the authority of North Dakota Century Code
				  chapter 54-40.2 or 57-39.8, then the provisions of that agreement apply with
				  respect to retail sales to enrolled Native Americans on an Indian reservation
				  in lieu of section
				  81-04.1-03-01.
General Authority:
NDCC
					 57-39.2-19
Law Implemented:
NDCC
					 57-39.8
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-04.1 - Sales and Use Taxes › Chapter 81-04.1-03 - Miscellaneous Sales › Section 81-04.1-03-02 - Sales by employers to employees

Current through Supplement No. 393, July, 2024
Purchases of tangible personal property by employees from
				  their employer are subject to sales tax. Employers operating a restaurant or
				  cafeteria exclusively for employees are retailers and the gross receipts from
				  such sales are subject to sales tax. Employees ordering merchandise from an
				  employer's wholesale catalog for personal use are subject to sales tax.
Employers who provide free meals to their employees are
				  subject to tax on the cost of the items given away. When an employer is unable
				  to determine the exact cost of a giveaway meal, tax is due on fifty percent of
				  the retail selling price of the meal.
General Authority: NDCC
					 57-39.2-19
Law Implemented: NDCC
					 57-39.2-01,
					 57-39.2-02.1,
					 57-39.2-03.2,
					 57-39.2-03.3
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-04.1 - Sales and Use Taxes › Chapter 81-04.1-03 - Miscellaneous Sales › Section 81-04.1-03-03 - Food and food products for human consumption

Current through Supplement No. 393, July, 2024
Food or food ingredients are exempt from sales tax. Food and
				  food ingredients do not include alcoholic beverages, candy, dietary
				  supplements, prepared food, soft drinks, or tobacco, which remain subject to
				  sales tax. For purposes of this section:
1. "Alcoholic beverage" for human consumption
				means beverages containing one-half of one percent or more of alcohol by
				volume.
2. "Candy" means a
				preparation of sugar, honey, or other natural or artificial sweeteners in
				combination with chocolate, fruits, nuts, or other ingredients or flavorings in
				the form of bars, drops, or pieces. Candy does not include any preparation as
				described herein, containing flour, or any item requiring
				refrigeration.
3. "Dietary
				supplement" means a product subject to tax if the product label contains a
				"supplemental facts" box. If the product label contains a "nutrition facts"
				box, the product is regarded as food, and is exempt from tax.
4. "Prepared food" is subject to sales tax
				and includes food sold in a heated state or heated by the seller, or food that
				is prepared by mixing or combining two or more food ingredients for sale as a
				single item, or food sold with eating utensils, such as plates, knives, forks,
				spoons, glasses, cups, napkins, or straws provided by the seller. Food sold in
				an unheated state by weight or volume as a single item is taxable only if sold
				with eating utensils. Food that ordinarily requires cooking, as opposed to just
				reheating, by the consumer prior to consumption is not prepared food. Generally
				businesses that sell prepared food include restaurants, convenience stores,
				delicatessens, concession stands, coffee shops, and caterers.
5. "Soft drinks" subject to sales tax include
				nonalcoholic beverages that contain natural or artificial sweeteners, and that
				do not contain milk or milk products, soy, rice, or similar milk substitutes,
				or that contain greater than fifty percent vegetable or fruit juice by volume.
				Soft drinks generally include pop and fruit drinks or fruit punches that are
				less than fifty percent juice by volume.
6. "Tobacco" means any cigarettes, cigars,
				chewing or pipe tobacco, or any other items that contain tobacco.
The exemption for food and food products given, or to be
				  given, as samples to consumers for consumption on the premises of a food store
				  does not apply to food given away by restaurants or other businesses which
				  regularly and primarily sell prepared food and beverages.
General Authority:
NDCC
					 57-39.2-19
Law Implemented:
NDCC
					 57-39.2-01,
					 57-39.2-02.1,
					 57-39.2-04.1,
					 57-40.2-04.1
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-04.1 - Sales and Use Taxes › Chapter 81-04.1-03 - Miscellaneous Sales › Section 81-04.1-03-04 - Sales in interstate commerce

Current through Supplement No. 393, July, 2024
When tangible personal property is sold by a North Dakota
				  retailer for use or consumption and delivered to the purchaser in another state
				  and the goods are not to be returned to this state, the sale is not subject to
				  sales tax. However, where the seller actually delivers possession of the goods
				  to the buyer or the buyer's representative or agent within this state, the
				  transaction is then terminated, and the tax applies. If a shipping company
				  takes possession of goods on behalf of a purchaser, the purchaser has not taken
				  possession of the goods.
Tangible personal property sold by a North Dakota retailer is
				  not subject to sales tax if it is shipped from the source of supply in another
				  state to the purchaser at a point outside this state or delivered to the
				  purchaser at the source of supply outside the state. If the property is brought
				  into this state, it is subject to use tax.
Sales of tangible personal property made within this state by
				  salesmen, representatives, agents, persons, or firms residing outside this
				  state and delivered in this state are subject to tax.
General Authority:
NDCC
					 57-39.2-19
Law Implemented:
NDCC
					 57-39.2-01,
					 57-39.2-02.1,
					 57-39.2-03.2,
					 57-39.2-04,
					 57-39.2-10,
					 57-39.4-12,
					 57-40.2-01,
					 57-40.2-03.3
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-04.1 - Sales and Use Taxes › Chapter 81-04.1-03 - Miscellaneous Sales › Section 81-04.1-03-05 - Sales of legal tender coins, currency, and precious metals

Current through Supplement No. 393, July, 2024
Coins or currency issued as legal tender by foreign nations
				  are exempt from sales tax. Sales of precious metal that has been refined to a
				  purity of not less than nine hundred ninety-nine parts per one thousand and is
				  in such form or condition that its value depends upon its precious metal
				  content and not its form are exempt from sales tax.
General Authority: NDCC
					 57-39.2-10
Law Implemented: NDCC
					 57-39.2-01,
					 57-39.2-02.1,
					 57-39.2-04
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-04.1 - Sales and Use Taxes › Chapter 81-04.1-03 - Miscellaneous Sales › Section 81-04.1-03-06 - Meal tickets and gift certificates

Current through Supplement No. 393, July, 2024
A meal ticket or gift certificate is not subject to sales tax
				  when it is sold to the consumer. Sales tax is added when the meals or
				  merchandise are purchased.
General Authority: NDCC
					 57-39.2-19
Law Implemented: NDCC
					 57-39.2-01,
					 57-39.2-02.1
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-04.1 - Sales and Use Taxes › Chapter 81-04.1-03 - Miscellaneous Sales › Section 81-04.1-03-07 - Sales to owners or operators of a building

Current through Supplement No. 393, July, 2024
Purchases of tangible personal property by an owner or
				  operator of a building for tenants' use in alterations, repair, or convenience
				  are subject to sales tax.
General Authority: NDCC
					 57-39.2-19
Law Implemented: NDCC
					 57-39.2-01,
					 57-39.2-02.1
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-04.1 - Sales and Use Taxes › Chapter 81-04.1-03 - Miscellaneous Sales › Section 81-04.1-03-08 - Sales by trustees, receivers, executors, and administrators

Current through Supplement No. 393, July, 2024
When trustees, receivers, executors, and administrators
				  operate, manage, or control a business engaged in selling tangible personal
				  property or services, they must collect and remit sales tax on the gross
				  receipts. It is immaterial that the officer may have been appointed by a
				  federal court.
Trustees, receivers, executors, or administrators engaged in
				  liquidating the assets of the business are subject to sales tax if liquidation
				  is by sales made in the usual and customary manner for use or consumption.
The trustee, receiver, executor, or administrator may not
				  report and remit under a permit issued to the previous owner but must apply for
				  and obtain a separate sales tax permit.
General Authority: NDCC
					 57-39.2-19
Law Implemented: NDCC
					 57-39.2-01,
					 57-39.2-02.1,
					 57-39.2-03.2,
					 57-39.2-03.3,
					 57-39.2-14
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-04.1 - Sales and Use Taxes › Chapter 81-04.1-03 - Miscellaneous Sales › Section 81-04.1-03-09 - Sales of microfiche

Current through Supplement No. 393, July, 2024
The gross receipts from the sale of an original copy of
				  microfiche are not subject to sales tax. This sale is exempt from sales tax as
				  a nontaxable service.
The gross receipts from the sale of all copies of an original
				  microfiche are subject to sales tax because they are sales of tangible personal
				  property.
When a retailer sells an original copy of microfiche with
				  additional copies, the original copy is exempt from sales tax as a nontaxable
				  service if it is separately billed. The separately billed copies remain subject
				  to sales tax. If a lump sum amount is billed to the purchaser, the total gross
				  receipts, including labor charges, are subject to sales tax.
General Authority: NDCC
					 57-39.2-19
Law Implemented: NDCC
					 57-39.2-01(3),
					 57-39.2-01(7),
					 57-39.2-02.1
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-04.1 - Sales and Use Taxes › Chapter 81-04.1-03 - Miscellaneous Sales › Section 81-04.1-03-10 - Mailing lists

Current through Supplement No. 393, July, 2024
The gross receipts from the sale of a prepared mailing list
				  are subject to sales tax if the retailer of the mailing list prepared the list
				  for sale to a number of purchasers.
The gross receipts from the sale of a prepared mailing list
				  are not subject to sales tax if the retailer of the mailing list prepared the
				  list on a custom basis for a specific purchaser.
General Authority: NDCC
					 57-39.2-19
Law Implemented: NDCC
					 57-39.2-01(3),
					 57-39.2-01(7),
					 57-39.2-02.1
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-04.1 - Sales and Use Taxes › Chapter 81-04.1-03 - Miscellaneous Sales › Section 81-04.1-03-12 - Sales by political parties and political committees

Current through Supplement No. 393, July, 2024
Political parties and political committees organized for
				  political purposes are considered to be conducting educational activities.
				  Political party or political committee sales of tickets, admissions, or
				  tangible personal property are exempt from sales or use tax provided the entire
				  net proceeds are used for political purposes and provided the sales do not
				  occur in a publicly owned facility.
"Political party" means any association, committee, or
				  organization which nominates a candidate for election to any office which may
				  be filled by a vote of the electors of this state or any of its political
				  subdivisions and whose name appears on the election ballot as the candidate of
				  the association, committee, or organization.
"Political committee" means any committee, club, association,
				  or other group of persons which receives contributions primarily for political
				  purposes.
"Political purpose" means any activity undertaken in support
				  of or in opposition to the election or nomination of a candidate for public
				  office.
General Authority: NDCC
					 57-39.2-19,
					 57-40.2-13
Law Implemented: NDCC 16.1-08.1-01,
					 57-39.2-01,
					 57-39.2-02.1,
					 57-39.2-04,
					 57-40.2-01,
					 57-40.2-02.1,
					 57-40.2-04
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-04.1 - Sales and Use Taxes › Chapter 81-04.1-03 - Miscellaneous Sales › Section 81-04.1-03-13 - Sales to a person from Montana

Current through Supplement No. 393, July, 2024
Sales of tangible personal property to a person from Montana
				  are exempt from sales tax if the person is in North Dakota specifically to make
				  a purchase and signs a certificate of purchase or a certificate of exemption
				  authorized by the streamlined sales tax agreement, the sale is in an amount of
				  fifty dollars or more, and the goods are taken outside of North Dakota, for use
				  entirely outside this state.
Sales of meals, onsale beverages, lodging accommodations,
				  entertainment, and similar goods and services consumed in North Dakota do not
				  qualify for the exemption.
Sales and installation of goods into personal property owned
				  by a person from Montana are not taxable provided the goods are removed from
				  North Dakota for use exclusively outside this state. Use which is incidental to
				  removing the goods from North Dakota does not subject the goods to North Dakota
				  use tax.
For purposes of this exemption, "person" means natural
				  persons, Montana corporations, and other business entities when the owners,
				  partners, or members are individual Montana residents.
General Authority:
NDCC
					 57-39.2-19
Law Implemented:
NDCC
					 57-39.2-04(12)
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-04.1 - Sales and Use Taxes › Chapter 81-04.1-03 - Miscellaneous Sales › Section 81-04.1-03-14 - Sales to residents of Canada

Current through Supplement No. 393, July, 2024
Canadian residents are subject to sales and use tax on
				  purchases made in North Dakota. Canadian residents may apply on forms
				  prescribed by the tax commissioner for a refund of North Dakota sales tax.
Sales tax paid by residents of Canada is not refundable
				  unless the goods are removed from North Dakota within thirty days of purchase
				  and will be used permanently outside North Dakota. Sales tax paid on meals,
				  onsale beverages, lodging accommodations, entertainment, and similar goods and
				  services which are consumed in North Dakota is not refundable.
Requests for refunds of sales tax paid by Canadian residents
				  must be accompanied by original sales receipts. The receipt must contain a
				  description of the purchase, including the seller's name, the amount paid for
				  the goods, and the date the goods were purchased.
A joint refund request is allowed for married couples,
				  married couples and their dependents, and individuals and their dependents. A
				  joint refund request by unrelated individuals is allowed only if the sales
				  receipt contains the names of all parties and a letter explaining the joint
				  refund request accompanies the request form.
General Authority: NDCC
					 57-39.2-19
Law Implemented: NDCC
					 57-39.2-04,
					 57-39.2-28