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

Sales to Contractors

North Dakota sales and use tax law regards any contractor who incorporates tangible personal property into real property

as the final user and consumer of the property. As a final user and consumer, the contractor is liable for sales or use tax on

the purchase price of that property.

If a contractor furnishes the seller of construction materials with a completed contractor certificate containing the contractor’s

license number assigned under the provisions of N.D.C.C. ch. 43-07 and the contractor’s sales and use tax number assigned

by the State Tax Commissioner, the seller is not required to collect tax on the sale. Any contractor furnishing such a

certificate must report those purchases on the sales and use tax return for the reporting period in which the purchases are

made and pay the tax to the Office of State Tax Commissioner with that return. Reporting the purchases and paying the tax

on a completed job basis is not permitted.

The following constitutes the Contractor’s Certificate as prescribed by the State Tax Commissioner and is available on our

website.

CONTRACTOR’S CERTIFICATE

I, the undersigned, am a construction contractor holding North Dakota Contractor’s License No. ___________ issued by

the Secretary of State of the State of North Dakota and North Dakota Sales and Use Tax Permit Number _________________

assigned to me by the State Tax Commissioner of the State of North Dakota.

I certify that as a construction contractor, I will report and remit any sales or use tax due directly to the Office of the North

Dakota State Tax Commissioner as a result of purchases made by me from ______________________________ (Seller)

Dated this ________ day of ______________________, _______ at ________________________________________

___________________________________________

_____________________________________________

(Contractor)

(Address)

If a contractor or subcontractor also is engaged in retail trade and part or all of the machinery, equipment, material or

supplies used in carrying out a construction contract are taken from stock that was purchased for resale, the contractor must

pay a use tax on his cost of the materials. The purchase price or value of the machinery, equipment, materials or supplies

used or consumed in carrying out the construction contract must be reported on the Items Subject to Use Tax line of the

sales and use tax return.

Local Sales and Use Tax

In addition to state sales and use taxes, various cities and counties also impose local option sales and use taxes. Most

locations that impose a local option sales tax also impose a local option use tax, with the exception of the cities of Cando,

Regent, Richardton and Scranton. These locations impose a sales tax only. See the Local Option Taxes by Location

guideline for details about local option sales and use taxes.

Because Cando, Regent, Richardton and Scranton do not impose a local option use tax, a business must be located within

these cities to be affected by the local taxes. However, for locations that impose a use tax, businesses not located within the

city or county may be required to collect the local option tax if they maintain an office or warehouse in that location, have

any employees or representatives working or stationed in that location, deliver goods into the city or county in company

owned delivery vehicles or have some other type of presence within the location.

Although local option taxes are imposed locally, the Office of State Tax Commissioner administers the taxes. Please

contact the Office of State Tax Commissioner for additional information regarding the local taxes which may affect you.

Sales and Special Taxes Division - 600 E. Boulevard Ave., Dept. 127 - Bismarck, ND 58505-0599

Phone (701) 328-3470

Hearing/speech impaired TTY users may call us through Relay North Dakota at 1-800-366-6888

Web site:

(Revised 7-2003)

Form 21826 - Sales And Use Tax Requirements Page 4

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