Form 21826 - Sales And Use Tax Requirements (Page 2 of 4) in pdf

Penalties

For returns filed late, a minimum penalty of 5 percent of the tax due or $5.00, whichever is greater, will be added to the tax

due for the first month the return is late. For each additional month or fraction thereof that a return is late an additional

penalty equal to 5 percent of the tax due will be assessed up to a maximum of 25 percent of the tax due. Interest is not

assessed for the first month the return is delinquent. Interest of 1 percent of the tax due will be assessed for each month or

fraction of a month after the first month that a return is late.

Retail Sales-Sales For Resale

A retail sale is the sale of tangible personal property to a person who is the final user and consumer of the goods. The seller

or supplier in this instance is required to collect sales tax on the sale to the final user.

A sale for resale is made when a dealer or supplier sells to another bona fide retailer for resale. The seller or supplier is not

required to collect sales tax from the individual or company making the purchase for resale provided the seller obtains a

signed certificate of resale from the purchaser.

If a person submits a false certificate of resale to a seller, the person submitting the false certificate is liable for any tax and

penalties which may become due. Certificates of resale should be obtained from retailers at least every two years.

The following certificate of resale is prescribed by the State Tax Commissioner and is available on our website.

CERTIFICATE OF RESALE

I hereby certify that I hold North Dakota Sales and Use Tax Permit Number __________________. I am engaged in the

business of selling, leasing or renting ________________________, and that the tangible personal property purchased

from ______________________ is purchased by me for resale.

I further certify that I will report and remit any sales or use tax and any penalties which become due as a result of

purchases made from the above seller which are used or consumed by me.

___________________________________________

_____________________________________________

Business Name

Business Address

___________________________________________

_____________________________________________

Authorized Signature

Date

These certificates are not to be sent to the Office of State Tax Commissioner, but must be retained in the supplier’s files

to substantiate sales claimed as sales for resale.

Purchases Subject to Use Tax

Individuals and businesses that purchase supplies and equipment for use in running a business or for personal use must pay

a sales or use tax on these purchases, based on the cost of the items being purchased. If these items are purchased from a

firm that does not collect North Dakota sales tax, the purchaser must report the purchase on the Items Subject to Use Tax

line of the sales and use tax return and pay a use tax on the purchase price. Examples of taxable purchases include office

supplies, office equipment, samples, fixtures, display cases, maintenance items, cleaning supplies, delivery equipment,

special installation tools and equipment, etc.

Rentals of Tangible Personal Property

The term sale also includes the leasing or renting of tangible personal property leased or rented for final use or consumption

within this state. Effective July 1, 2001, certain vehicles subject to the motor vehicle excise tax imposed by the North

Dakota Century Code ch. 57-40.3 also will be subject to sales tax if the vehicle is rented in this state for less than 30 days.

Please see the Licensed Motor Vehicle Dealers Guideline for details.

Delivery To Out-Of-State Residents

Delivery to a customer out-of-state constitutes a sale in interstate commerce and is not a taxable sale in North Dakota. For

example, if a retailer in North Dakota sells merchandise to an out-of-state resident and, as a condition of the sale, agrees to

deliver the merchandise or to have the merchandise delivered to the customer at a point in another state, North Dakota sales

tax does not apply. However, the North Dakota retailer may be obligated to collect and remit the tax for the state into which

the retailer delivers if the retailer’s activities in that state are sufficient to obligate the retailer to that state’s tax law.

Form 21826 - Sales And Use Tax Requirements Page 2

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