Sales, Use And Gross Receipts Tax Requirements - North Dakota Tax Commissioner printable pdf download

Guideline

Sales Tax

Sales, Use and Gross Receipts

Tax Requirements

Cory Fong

January 2008

Tax Commissioner

In order to promote a better understanding of the North Dakota sales, use and gross receipts tax laws, the Ofﬁ ce of State Tax Commissioner

provides the following general information. Special guidelines for certain types of businesses also are available and may be obtained by

contacting the Sales Tax Compliance Section of the Ofﬁ ce of State Tax Commissioner or by viewing the guidelines on our web site at

Imposition and Rates - Sales & Use Tax

Sales tax is paid by the purchaser and collected by the retailer.

Sales tax is levied at the following rates:

• 1 percent on the total receipts from retail sales of natural gas. (1% rate from 1/1/08 until 6/30/09, exempt after 7/1/09)

• 3 percent on the total receipts from retail sales of new mobile homes. (Used mobile homes are exempt.)

• 5 percent on the total receipts from the leasing or renting of hotel, motel or tourist court accommodations for periods of less than 30

consecutive days.

• 5 percent on the total receipts from all other taxable retail sales of tangible personal property and services.

Imposition and Rates - Gross Receipts Tax

Gross receipts tax is levied at the following rates:

• 3 percent on the gross receipts from retail sales of new farm machinery and new irrigation equipment used exclusively for agricultural

purposes.

• 7 percent on the gross receipts from retail sales of alcoholic beverages sold for consumption either on or off the premises.

* The 1 percent on the gross receipts from the leasing or renting of hotel, motel, or tourist court accommodations for periods of fewer

than thirty consecutive days, excluding bed and breakfast accommodations was in effect from July 1, 2003 through June 30, 2007.

Permits and Reporting

Any business or institution making taxable retail sales of tangible personal property or services is required to hold a North Dakota sales,

use and gross receipts tax permit. An application to obtain a permit must be submitted to the Registration Section of the Ofﬁ ce of State Tax

Commissioner. When a business or institution has a permit, a sales, use and gross receipts tax return is sent to the taxpayer each calendar

quarter (or each assigned reporting period) to report and remit the sales, use and gross receipts tax. The reporting and paying of North

Dakota state and local sales, use and gross receipts taxes can also be completed using the state’s electronic sales, use and gross receipts tax

ﬁ ling system, which may be used as an alternative to ﬁ ling the paper tax return. For more information on the state’s sales, use and gross

receipts tax ﬁ ling system, please refer to the electronic ﬁ ling information located at ling. These returns

must be ﬁ led each period whether tax is due or not. If no tax is due, the return must be ﬁ led indicating that no taxable sales or reportable

purchases were made for that period. If the return is not ﬁ led, the Sales Tax Compliance Section will notify the permit holder that the

return is delinquent and that a penalty is due.

Sales tax applies to sales of tangible personal property and certain services to a ﬁ nal user and consumer. Use tax is complimentary to

sales tax and is imposed on the use, storage or consumption of tangible personal property in this state unless the goods already have been

subjected to sales tax.

If a business or institution purchases materials, supplies or equipment for resale, the business or institution should not pay the tax to the

supplier. Instead, the business or institution should collect tax from the customer when the item is sold and remit the tax to the Ofﬁ ce of

State Tax Commissioner.

21826

North Dakota Ofﬁ ce of State Tax Commissioner

600 E. Boulevard Ave., Dept. 127

701.328.3470

salestax@nd.gov

Bismarck, ND 58505-0599

TDD: 1.800.366.6888

Sales, Use And Gross Receipts Tax Requirements - North Dakota Tax Commissioner

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