Title 57, Taxation

This chapter may be cited as the "Uniform Division of Income for Tax Purposes Act".

The provisions of this chapter apply to all income accruing after January 1, 1965, for taxpayers operating on a calendar year basis, and apply to income accruing in 1965 after the beginning of their fiscal year for taxpayers operating on a fiscal year basis.

It is the intent of the legislative assembly to establish a policy and to provide a system whereby all claimant agencies of the state of North Dakota, in conjunction with the commissioner, shall cooperate in identifying debtors who owe money to the state through its various claim…

As used in this chapter: 1. "Claimant agency" means the department of health and human services, job service North Dakota, workforce safety and insurance, state institutions of higher education, the North Dakota student loan service center, the insurance commissioner, the North D…

The collection remedy authorized by this chapter is in addition to and not in substitution for any other remedy available by law.

1. A claimant agency may submit any debts in excess of twenty-five dollars to the commissioner for collection through setoff, together with any information the commissioner may require, under the procedure established by this chapter, except in cases in which the validity of the …

1. Within a time specified by the commissioner, a claimant agency seeking to collect a debt through setoff shall supply the information necessary, in a form and in the manner prescribed by the commissioner, to identify each debtor whose refund is sought to be set off and certify …

1. If the claimant agency receives written application contesting the setoff or the claim upon which the setoff is based, it shall grant a hearing to the taxpayer to determine whether the setoff is proper or the claim is valid. A hearing to contest a setoff sought by the state co…

Upon final determination of the amount of the debt due and owing by means of the procedures provided by section 57-38.3-06 or by the taxpayer's default through failure to comply with section 57-38.3-05, mandating timely request for review, the claimant agency shall remove the amo…

1. Notwithstanding the provisions of section 57-38-57 or other confidentiality statutes, the commissioner may provide to a claimant agency the information necessary to accomplish and effectuate the intent of this chapter. 2. The information obtained by a claimant agency from the …

When the setoff authorized by this chapter is exercised, the refund which is set off must be deemed granted and paid effective the date that funds are transferred to the claimant agency.

1. The commissioner may first apply any refund or credit to payment of the taxpayer's delinquent tax and may delay a transfer of funds to a claimant agency until the taxpayer's delinquent returns have been filed. 2. If more than one claimant agency asserts a debt, or if a claiman…

As used in this chapter, unless the context or subject matter otherwise requires: 1. "Affiliated corporation" means a parent corporation and any corporation of which more than fifty percent of the voting stock is owned directly or indirectly by the parent corporation or another m…

A corporation required to file a worldwide unitary combined report must do so unless it elects to apportion its income using the water's edge method. 1. A corporation electing to file using the water's edge method must comply with the following: a. The election must be made on th…

The tax commissioner may impose necessary conditions other than the imposition of worldwide combination to prevent tax avoidance or to clearly reflect income in accordance with chapter 57-38.1.

A taxpayer and its affiliates are presumed to be a part of a unitary business and all income of that business is presumed to be apportionable business income except as otherwise provided in this chapter. A taxpayer has the burden of proof regarding the issue of whether or not a c…

As used in this chapter, unless the context otherwise requires: 1. "Director" means the director of the department of commerce division of economic development and finance. 2. "Passthrough entity" has the same meaning as in section 57-38-01. 3. "Primary sector business" has the m…

1. The director shall certify whether a business that has requested to become a qualified business meets the requirements of section 57-38.5-01. The director shall establish the necessary forms and procedures for certifying qualified businesses. 2. A qualified business may apply …

If a taxpayer makes a qualified investment in a qualified business, the taxpayer is entitled to a credit against state income tax liability under section 57-38-30 or 57-38-30.3. 1. The amount of the credit to which a taxpayer is entitled is forty-five percent of the amount invest…

The tax credit under section 57-38.5-03 must be credited against the taxpayer's income tax liability for the taxable year in which the investment in the qualified business was received by the qualified business.

The aggregate amount of seed capital investment tax credit allowed for investments under this chapter is limited to three million five hundred thousand dollars for each calendar year. If investments in qualified businesses reported to the commissioner under section 57-38.5-07 exc…

To receive the tax credit provided by section 57-38.5-03, a taxpayer must claim the credit on the taxpayer's annual state income tax return in the manner prescribed by the tax commissioner and file with the return a copy of the form issued by the qualified business as to the taxp…

Within thirty days after the date on which an investment in a qualified business is purchased, the qualified business shall file with the tax commissioner and the director and provide to the investor completed forms prescribed by the tax commissioner which show as to each investm…

The tax commissioner is charged with administration of this chapter as it relates to an income tax credit and has the same powers as provided under section 57-38-56 for purposes of this chapter. The director is charged with administration of this chapter as it relates to certific…

As used in this chapter, unless the context otherwise requires: 1. "Agricultural commodity processing facility" means: a. A facility that through processing involving the employment of knowledge and labor adds value to an agricultural commodity capable of being raised in this sta…

1. The director shall certify whether a business that has requested to become a qualified business meets the requirements of subsection 5 of section 57-38.6-01. The director shall establish the necessary forms and procedures for certifying qualified businesses. 2. A qualified bus…

If a taxpayer makes a qualified investment in a qualified business, the taxpayer is entitled to a credit against state income tax liability as determined under section 57-38-30 or 57-38-30.3. 1. The amount of the credit to which a taxpayer is entitled is thirty percent of the amo…

The tax credit under section 57-38.6-03 accrues to the taxpayer for the taxable year in which the investment in the qualified business was received by the qualified business.

To receive the tax credit provided by section 57-38.6-03, a taxpayer must claim the credit on the taxpayer's annual state income tax return in the manner prescribed by the tax commissioner and file with the return a copy of the form issued by the qualified business as to the taxp…

Within thirty days after the date on which an investment in a qualified business is purchased, the qualified business shall file with the tax commissioner and the director and provide to the investor completed forms prescribed by the tax commissioner which show as to each investm…

The tax commissioner is charged with administration of this chapter as it relates to an income tax credit and has the same powers for purposes of this chapter as provided under section 57-38-56. The director is charged with administration of this chapter as it relates to certific…

The following words, terms, and phrases, when used in this chapter, have the meaning ascribed to them in this section, unless the context clearly indicates a different meaning: 1. "Bundled transaction" means the retail sale of two or more products, except real property and servic…

1. Except as otherwise expressly provided in this chapter, there is imposed a tax of five percent upon the gross receipts of retailers from all sales at retail, including the leasing or renting of tangible personal property as provided in this section, within this state of the fo…

Notwithstanding any other provision of law, any seller of tangible personal property or other taxable product for delivery in this state, which does not have a physical presence in this state, is subject to this chapter and chapter 57-40.2 and shall remit sales or use tax if the …

1. For the purposes of this section: a. "Exemption certificate" means documentation furnished by a buyer to a seller to claim an exemption from sales tax or use tax. The term includes a resale certificate or other documentation authorized in section 57-39.2-10 furnished by a buye…

In the case of a bundled transaction of services that includes telecommunications services, if the price is attributable to services that are taxable and services that are nontaxable, the portion of the price attributable to the nontaxable services is subject to tax under this ch…

Gross receipts from the sale of tangible personal property costing sixteen cents or more sold through a coin-operated vending machine are subject to the sales tax imposed by chapter 57-39.2, and gross receipts from the sale of tangible personal property costing fifteen cents or l…

A company engaged in the business of renting motor vehicles for periods of fewer than thirty days shall collect a three percent surcharge on each rental contract at the time a vehicle of a gross vehicle weight of ten thousand pounds [4535.92 kilograms] or less is rented from the …

Notwithstanding any other provision of law, the sales taxes imposed by this chapter apply to the gross receipts of retailers from all sales at retail of cigarettes, cigars, and other tobacco products. For purposes of this section, "gross receipts" from the sale of cigarettes, cig…

There are specifically exempted from the provisions of this chapter and from computation of the amount of tax imposed by it the following: 1. Gross receipts from sales of tangible personal property which this state is prohibited from taxing under the Constitution or laws of the U…

Gross receipts from sales for human consumption of food and food ingredients are exempt from taxes imposed under this chapter. Gross receipts from sales for human consumption of food and food products given, or to be given, as samples to consumers for consumption on the premises …

1. Gross receipts from sales of tangible personal property used to construct or expand a processing facility in this state to produce liquefied natural gas are exempt from taxes under this chapter. To be exempt, the tangible personal property must be incorporated in the structure…

1. Gross receipts from sales of tangible personal property used to construct or expand a facility in this state to extract or process byproducts associated with coal gasification are exempt from taxes under this chapter. To be exempt, the tangible personal property must be incorp…

1. Gross receipts from sales of tangible personal property used to construct or expand a system used to compress, gather, collect, store, transport, or inject carbon dioxide for secure geologic storage or use in enhanced recovery of oil or natural gas in this state are exempt fro…

1. Gross receipts from sales of tangible personal property used to construct a fertilizer or chemical processing facility in this state, and any component integral to the fertilizer or chemical processing plant, are exempt from taxes under this chapter. To be exempt, the tangible…

1. Gross receipts from sales of tangible personal property used to construct or expand a qualified straddle plant, a qualified fractionator, or qualified associated infrastructure in this state are exempt from the tax imposed under this chapter. To qualify for the exemption, the …