North Dakota Administrative Code

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 c…

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 round…

Repealed effective April 1, 2006. 17

sales by municipal corporations. 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 service…

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 contra…

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. History: Ef…

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 m…

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 ca…

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 r…

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…

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…

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 possessi…

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 preci…

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. History: Effective June 1, 1984. General Authority: NDCC 57-39.2-19 Law Implemented: NDCC 57-39.2-01, 57-39.2-02.1

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. History: Effective June 1, 1984. General Authority: NDCC 57-39.2-19 Law Implemented: NDCC 57-39.2-01, 57-39.2-02.1

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 fe…

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…

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 …

Computers, peripheral computer equipment, and computer software, with the exception of custom software, are subject to tax. For purposes of administration of the sales and use tax law, unless the context otherwise requires, the following definitions apply: 1. "Computer" means an …

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 ent…

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…

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 rem…

Sales of agrichemical tank cleaners and foam markers, agricultural chemicals, including adjuvants, seeds, roots, bulbs, and small plants for commercial vegetable gardens or agricultural purposes are not subject to the tax, but such sales for noncommercial purposes are taxable. A …

irrigation equipment repair parts. Farm machinery and irrigation equipment used principally for producing agricultural crops or livestock, including leasing or renting of farm machinery and equipment, are subject to a special gross receipts tax in lieu of sales tax at a reduced r…

Pet foods, including wormers and tonics, are not livestock feeds and are subject to sales tax whether or not such animals are kept as pets. Horse feed and rabbit feed are exempt from sales tax. History: Effective June 1, 1984. General Authority: NDCC 57-39.2-19 Law Implemented: N…

The receipts of public school districts from entertainment or events are exempt from sales tax if the net receipts after necessary operating expenses are deposited in the school district treasury. It is immaterial whether the receipts are expended directly from the school distric…

When a fair enters into a percentage basis contract with concessionaires for the privilege of conducting exhibitions, games, or entertainment, the concessionaire is responsible for payment of tax on gross receipts. Sale of tickets for activities operated during the fair and entir…

Receipts from games of chance operated by nonprofit organizations are exempt from sales tax. Instruments for gambling purchased by these organizations are subject to sales and use tax unless the organization is exempt from sales and use tax. History: Effective June 1, 1984; amend…

organizations. Purchases by nonprofit, religious, educational, or charitable organizations of materials needed to conduct entertainment or athletic events are subject to sales tax. Items such as programs which are given away, advertising posters, tickets, and similar items are ta…

Repealed effective July 1, 2016.

The admission charge and the charge for the rental or use of skates is subject to sales tax whether or not they are separately stated. History: Effective June 1, 1984. General Authority: NDCC 57-39.2-19 Law Implemented: NDCC 57-39.2-01, 57-39.2-02.1

participation in amusement. Tax is imposed upon the gross receipts from the sale of tickets or admission for participation in amusement, entertainment, or athletic events. Admission includes regular dues or fees which entitle one to usual club or similar organization privileges. …

CHAPTER 81-04.1-04 SPECIFIC OCCUPATIONS Section 81-04.1-04-01 Agriculture - Commercial Chemicals and Seeds for Planting 81-04.1-04-02 Agriculture - Farm Machinery and Irrigation Equipment - Farm Machinery and Irrigation Equipment Repair Parts 81-04.1-04-03 Agriculture - Livestock…

Gross receipts derived from coin-operated vending machines are subject to sales tax if the price per article exceeds fifteen cents. In the absence of a written agreement stipulating division of gross 4 receipts between the vending machine owner and the location operator, the vend…

Repealed effective July 1, 2016.

Every auctioneer or agent acting for an unknown or undisclosed principal, entrusted with the possession of any bill of lading, customhouse, or warehouseman's receipt for delivery of any tangible personal property for the purpose of sale, is the owner. Upon the sale of such proper…

Receipts from the sale at public auction of tangible personal property secured under the Uniform Commercial Code are not taxable if the sale is made by a court decree of foreclosure by an officer appointed by the court for that purpose or if the property is bid in by the mortgage…

Motor vehicles, including snowmobiles and all-terrain vehicles, purchased or acquired in or outside of the state of North Dakota for use on the streets and highways of this state are required to be 5 registered with the North Dakota department of transportation and are subject to…

Repealed effective September 1, 1997.

If lubricants are sold separately from the rendering of lubrication service, and the customer is billed separately for greases or lubricants, the tax applies upon the gross receipts from such sale. Receipts from coin-operated automobile washes are not subject to sales tax. Histor…

Any credit union organized under the Federal Credit Union Act [12 U.S.C.A. 1751] is exempt from North Dakota sales tax on purchases of tangible personal property for its own use. Credit unions organized under North Dakota Century Code chapter 6-06 are subject to North Dakota sale…

and savings and loan associations. When financial institutions are engaged in the business of purchasing tangible personal property for lease or rental at retail, they are required to collect and remit the tax from their customers on all periodic lease or rental payments unless t…

Companies which repossess or acquire tangible personal property in connection with their loan or finance business and sell such tangible personal property at retail are required to hold a retail sales tax permit and collect and remit sales tax on such sales. History: Effective Ju…

When a blacksmith or machine shop makes or fabricates and sells a finished article to a customer, the sales tax applies to the full selling price of such article, with no deduction for labor or material used. History: Effective June 1, 1984. General Authority: NDCC 57-39.2-19, 57…

A contractor or subcontractor installing materials into real property located in North Dakota must pay sales or use tax on those materials regardless of who owns them. If the materials are sold for installation into real property located outside of this state, sales or use tax mu…

Repealed effective April 1, 2006.

When the seller transplants for the buyer, the transaction is as an installation into real property, and the tax is computed on the cost of the merchandise. When florists conduct transactions through a florists' telegraphy delivery association, the following rules apply: 1. On al…