Title 57, Taxation

1. No member state shall have multiple state sales and use tax rates on items of personal property or services, except that a member state may impose a single additional rate, which may be zero, on food and food ingredients and drugs as defined by state law under the agreement. I…

1. Each member state shall agree to require sellers to source the retail sale of a product in accordance with section 57-39.4-11 or 57-39.4-11.1. Except as provided in section 57-39.4-11.1, the provisions of section 57-39.4-11 apply to all sales regardless of the characterization…

1. Except as provided in section 57-39.4-11.1, a retail sale, excluding lease or rental, of a product shall be sourced as follows: a. When the product is received by the purchaser at a business location of the seller, the sale is sourced to that business location. b. When the pro…

1. A member state that has local jurisdictions that levy or receive sales or use taxes may elect to source the retail sale of tangible personal property and digital goods under the provisions of this section in lieu of the provisions of subdivisions b, c, and d of subsection 1 of…

For the purposes of subsection 1 of section 57-39.4-11, the terms "receive" and "receipt" mean: 1. Taking possession of tangible personal property; 2. Making first use of services; or 3. Taking possession or making first use of digital goods, whichever comes first. The terms "rec…

1. For purposes of this section: a. "Advertising and promotional direct mail" means: (1) Printed material that meets the definition of direct mail, in appendix C, part I of the agreement; and (2) The primary purpose of which is to attract public attention to a product, person, bu…

1. Notwithstanding sections 57-39.4-11, 57-39.4-11.1, and 57-39.4-14, a member state may elect to source the sale of all direct mail delivered or distributed from a location within the state and delivered or distributed to a location within the state under this section. 2. If the…

1. Except for the defined telecommunications services in subsection 3, the sale of telecommunications services sold on a call-by-call basis shall be sourced to each level of taxing jurisdiction where the call originates and terminates in that jurisdiction or each level of taxing …

For the purpose of section 57-39.4-15, the following definitions apply: 1. "Air-to-ground radiotelephone service" means a radio service, as that term is defined in 47 CFR 22.99, in which common carriers are authorized to offer and provide radio telecommunications service for hire…

A member state shall enact entity-based, use-based, and product-based exemptions in accordance with the provisions of this section and utilize common definitions in accordance with the provisions of section 57-39.4-28 and the agreement. 1. A member state may enact a product-based…

1. Each member state shall observe the following provisions when a purchaser claims an exemption: a. The seller shall obtain identifying information of the purchaser and the reason for claiming a tax exemption at the time of the purchase as determined by the governing board. b. A…

Each member state shall: 1. Require that only a single tax return for each taxing period for each seller be filed for the member state to include all the taxing jurisdictions within the member state. 2. a. Require that returns be due no sooner than the twentieth day of the month …

Each member state shall: 1. Require only one remittance for each return except as provided in this subsection. If any additional remittance is required, it may only be required from sellers that collect more than thirty thousand dollars in sales and use taxes in the member state …

Each member state shall use the following to provide a deduction for bad debts to a seller. To the extent a member state provides a bad debt deduction to any other party, the same procedures will apply. Each member state shall: 1. Allow a deduction from taxable sales for bad debt…

1. The purpose of this section is to set forth the member states' policy for the protection of the confidentiality rights of all participants in the system and of the privacy interests of consumers who deal with model 1 sellers. 2. As used in this section, the term "confidential …

1. If a member state allows for temporary exemption periods, commonly referred to as sales tax holidays, the member state shall: a. Not apply an exemption unless the items to be exempted are specifically defined in part II or part III(B) of the library of definitions and the exem…

1. No member state may have caps or thresholds on the application of state sales or use tax rates or exemptions that are based on the value of the transaction or item or have caps that are based on the application of the rates unless the member state assumes the administrative re…

1. After December 31, 2005, each member state shall adopt a rounding algorithm that meets the following criteria: a. Tax computation must be carried to the third decimal place; and b. The tax must be rounded to a whole cent using a method that rounds up to the next cent whenever …

1. This section applies when a state allows a purchaser to seek a return of over-collected sales or use taxes from the seller. 2. Nothing in this section shall either require a state to provide, or prevent a state from providing, a procedure by which a purchaser may seek a refund…

Each member state shall provide for a direct pay authority that allows the holder of a direct pay permit to purchase otherwise taxable goods and services without payment of tax to the supplier at the time of purchase. The holder of the direct pay permit will make a determination …

Each member state shall utilize common definitions as provided in this section. The terms defined are set out in the library of definitions, in appendix C of the agreement adopted by section 57-39.4-01. A member state shall adhere to the following principles: 1. If a term defined…

1. a. To ensure uniform application of terms defined in part II and part III(B) of the library as adopted by the governing board under section 57-39.4-28, each member state shall complete, to the best of its ability, the section of the taxability matrix titled "library of definit…

Each member state shall provide that the effective date of rate changes for services covering a period starting before and ending after the statutory effective date shall be as follows: 1. For a rate increase, the new rate shall apply to the first billing period starting on or af…

The streamlined sales tax governing board consists of: 1. The tax commissioner or the commissioner's designee; 2. One member appointed by the majority leader of the senate; and 3. One member appointed by the majority leader of the house of representatives.

1. A member state shall adopt, and utilize to determine tax treatment, the core definition for a "bundled transaction" in the agreement. 2. Member states are not restricted in their tax treatment of bundled transactions except as otherwise provided in the agreement. Member states…

1. A member state shall relieve a purchaser from liability for penalty to that member state and its local jurisdictions for having failed to pay the correct amount of sales or use tax in the following circumstances: a. A purchaser's seller or certified service provider relied on …

1. A member state shall not include "specified digital products", "digital audiovisual works", "digital audio works", or "digital books" within its definition of "ancillary services", "computer software", "telecommunication services", or "tangible personal property". This restric…

A member state shall not include any product transferred electronically in its definition of "tangible personal property". "Ancillary services", "computer software", and "telecommunication services" are excluded from the phrase "products transferred electronically".

No member state may have a prohibited replacement tax on any product defined in part II or part III(B) of the library of definitions which has the effect of avoiding the intent of this agreement.

1. For purposes of this section, tax administration practices consist of the following: a. "Disclosed practice", which means a tax practice that the governing board selects and requires each member state to disclose under subsection 2; and b. "Best practice", which means is a dis…

1. The governing board shall certify automated systems and service providers to aid in the administration of sales and use tax collections. 2. The governing board may certify a person as a certified service provider if the person meets all of the following requirements: a. The pe…

1. Each member state shall review software submitted to the governing board for certification as a certified automated system as provided for in this chapter. Such review shall include a review to determine that the program accurately reflects the taxability of the product catego…

Words used in this chapter have the same meaning as provided in chapter 57-39.2. As used in this chapter: 1. "Attachment unit" means any part or combination of parts having an independent function, other than farm machinery repair parts, which when attached or affixed to farm mac…

1. When tangible personal property is taken in trade or in a series of trades as a credit or partial payment of a retail sale or lease agreement which is taxable under this chapter, if the tangible personal property traded in will be subject to gross receipts taxes imposed by thi…

There is imposed a tax of three percent upon the gross receipts of retailers from all sales at retail, including the leasing or renting, of farm machinery or irrigation equipment used exclusively for agricultural purposes. After July first of each year, five hundred thousand doll…

When new farm machinery is purchased as a replacement for machinery on which the insurant has previously paid the gross receipts, sales, or use tax and which was stolen or totally destroyed, a credit or trade-in credit is allowed against one or more replacement purchases in a cum…

The provisions of chapter 57-39.2 pertaining to administration of the retail sales tax, including provisions for refund, credits, retailer compensation, or adoption of rules, not in conflict with this chapter or federal law, govern the administration of the gross receipts tax imp…

1. A person who receives farm machinery for storage, use, or consumption in this state is subject to tax on storage, use, or consumption of that farm machinery at the rate imposed under section 57-39.5-02. 2. A person subject to taxes under subsection 1 who has paid taxes to anot…

At the time of entering a lease agreement for new farm machinery or irrigation equipment subject to taxes under this chapter, the lessor shall: 1. Pay the taxes imposed under this chapter on the purchase price of the equipment that was purchased for the purpose of leasing; 2. On …

Words used in this chapter have the same meaning as in chapter 57-39.2. For purposes of this chapter: 1. "Alcoholic beverage" means any liquid suitable for drinking by human beings, which contains one-half of one percent or more of alcohol by volume. This includes beverages wheth…

There is imposed a tax of seven percent on the gross receipts of retailers from all sales at retail of alcoholic beverages. Gross receipts from sales at retail of alcoholic beverages are exempted from the tax imposed by this chapter when the sale is made to a purchaser who is ent…

Taxes imposed by this chapter may be included in the purchase price of the alcoholic beverages.

The provisions of chapter 57-39.2, pertaining to administration of the retail sales tax, including provisions for refund, credits, retailer compensation, or adoption of rules, not in conflict with this chapter or federal law, govern the administration of the gross receipts tax im…

1. A person who receives alcoholic beverages for storage, use, or consumption in this state is subject to tax on storage, use, or consumption of those alcoholic beverages at the rate imposed under section 57-39.6-02. 2. A person subject to taxes under subsection 1 who has paid ta…

The governor, in consultation with the tax commissioner, may enter separate agreements on behalf of the state with the governing body of the Three Affiliated Tribes of the Fort Berthold Reservation, Sisseton-Wahpeton Oyate of the Lake Traverse Reservation, Spirit Lake Tribe, Stan…

The governor may enter an agreement with a tribe or tribes if the agreement complies with this section. 1. The taxes subject to an agreement under this chapter are the state's sales, use, and gross receipts taxes under chapters 57-39.2, 57-39.5, 57-39.6, and 57-40.2, as may be am…