North Dakota Sales Tax

On this page you will find handy sales and use tax information about North Dakota.

How to use this page:

We’ve pulled in the information from all our Charts for a consolidated view by state.  Here you can see the sales tax rates and if the state has remote seller nexus rules. You can also see any sales tax holidays or amnesty programs that may exist, though these do not apply to all states.

Below the chart you can find any News & Tip item we have published that relates to North Dakota that you can filter by topic. This will help you get informed on current and past legislation that has passed in the state.

State Rate

5.000% The state has reduced rates for sales of certain types of items.

Range of Local Rates

0% – 3% A cap on the local sales/use tax applies on sales of any item of tangible personal property. Some local jurisdictions do not impose a sales tax.

Local Rates Apply to Use Tax

Yes

ECONOMIC NEXUS

10/1/2018 – see state notice

MARKETPLACE NEXUS

10/1/2019

Administration Information
Streamlined Sales Tax Status

Full Member

NUMBER OF TAXING AUTHORITIES

150 Sales Tax Jurisdictions

HOME RULE AUTHORITIES

N/A

Sales Tax Sourcing (Intrastate)

Destination

Sales Tax Return Due Date

Last day of the month following the quarter

Exemption Information
RESALE CERTIFICATE

North Dakota Resale Certificate

TYPES OF EXEMPTIONS

Product types of exemptions: items consumed in production and certain machinery and equipment purchases by manufacturers; construction related services; data centers, coal & oil related products, generation activities

 

Entity types of exemptions: government entities; federal chartered corporations; public and private non-profit schools; hospitals, nursing homes, intermediate, basic care, assisted living facilities; emergency medical providers licensed by the North Dakota Department of Health and Human Services (on qualifying purchases); qualifying voluntary health organizations; sales to nonprofit organizations are generally taxable, but prior specific exemptions do apply

 

North Dakota Exemption Certificate Forms

History & Fun Facts
HISTORY

North Dakota’s original sales tax was enacted in 1935. The state enacted a complimentary use tax in 1939. North Dakota’s current sales and use tax were enacted in 1977.

 

North Dakota became a full member of Streamlined Sales Tax on October 1, 2005.

FUN FACTS
  • One of the foundational court cases regarding sales tax nexus – Quill Corporation v. North Dakota – took place in North Dakota in 1992. Until the U.S. Supreme Court’s decision in South Dakota v. Wayfair in 2018, Quill Corporation v. North Dakota was the law of the land for sales tax nexus.

Economic Nexus State Guide

Key information such as effective dates, thresholds, and includable sales for out-of-state sellers making sales into states that have enacted economic nexus legislation both before and after the South Dakota v. Wayfair Supreme Court decision.

South Dakota v. Wayfair Analysis & Predictions: Sales Tax Experts Weigh-In

Sales tax experts lend their insight into and predictions for one of the most important U.S. Supreme Court decisions regarding sales tax in decades, South Dakota v. Wayfair.

State Notices & Resources for Remote Sellers

Use this state by state guide to find each state\’s initial guidance on how to proceed post-Wayfair, state resources such as FAQs, and any state activity such as going through a legislative process that impacts remote sellers.

Remote Seller Resources

Comprehensive list of resources for remote sellers following the South Dakota v. Wayfair Supreme Court decision – including state notices, videos, articles, training opportunities, and more.

Sellers May Be Contacted About Other Taxes Under New Streamlined Sales Tax Governing Board Rule

Sellers registered through SSTP may be contacted about other taxes in the member states where they register with the SSTP.

North Dakota Enacts Marketplace Nexus Legislation

Effective October 1, 2019, North Dakota has enacted marketplace nexus provisions.

October 1, 2018 Remote Seller Deadline for Multiple States

The October 1, 2018 remote seller compliance deadline is approaching for a number of states. Click on the links below for our previous news items with more details. Alabama Enacts Economic Nexus Provision Illinois Enacts Economic Nexus Legislation Indiana Enacts…

House Introduces Online Sales Simplicity and Small Business Relief Act of 2018

On September 13, 2018, Rep. Jim Sensenbrenner (R-WI) and additional U.S. House members introduced the Online Sales Simplicity and Small Business Relief Act of 2018.

U.S. Supreme Court Issues Decision In South Dakota v. Wayfair

On June 21, 2018, the U.S. Supreme Court issued its decision in the South Dakota v. Wayfair case, ruling in favor of South Dakota and overturning Quill’s physical presence rule.

North Dakota Enacts Economic Nexus Legislation, Pending Quill Decision

North Dakota enacted economic nexus legislation applicable to remote sellers, who will be required to collect and remit North Dakota sales or use tax if the seller’s gross sales or number of transactions surpass a certain threshold.

Multistate Tax Commission Updates Its Uniform Sales & Use Tax Exemption Certificate

The Multistate Tax Commission (MTC) revised its Multijurisdictional Uniform Sales & Use Tax Exemption/Resale Certificate on January 22, 2018 to reflect two state changes.

Record Number of Sellers Participate in 2017 MTC Amnesty Program

The volume of applicants for the 2017 online marketplace seller tax amnesty program overwhelmed the Multistate Tax Commission.

Record Retention Requirement Does Not Limit Authority to Obtain Audit Records in North Dakota

North Dakota issued an opinion stating that the record retention requirement imposed on a retailer doesn’t limit the Tax Commissioner’s authority to obtain the records necessary to audit a taxpayer.

Multistate Tax Commission Announces Tax Amnesty Program for Online Sellers

The MTC organized a tax amnesty program for online sellers, running from August 17 to November 1, 2017. The voluntary disclosure program allowed sellers to start remitting sales tax on future sales without penalty or liability for unpaid, prior accumulated sales tax in 25 participating states.

No Regulation Without Representation Act of 2017 Introduced

Under the proposed House bill, a state may tax or regulate a person’s activity in interstate commerce only when the person is physically present in the state during the period in which the tax or regulation is imposed.

Congress Introduces Marketplace Fairness Act of 2017 and Remote Transactions Parity Act of 2017

Introduced on April 27, 2017, the Marketplace Fairness Act of 2017, if enacted, would authorize states meeting certain requirements to require remote sellers that do not meet a small seller exception to collect their state and local sales and use taxes.

Online Sales Simplification Act of 2016 Discussion Draft is Introduced

The proposed legislation would implement a “hybrid origin” approach for remote sales. States could impose sales tax on remote sales if the origin state participates in a clearinghouse.

No Regulation Without Representation Act of 2016 Introduced

Taking the opposite approach of the Marketplace Fairness Act and Remote Transactions Parity Act, the proposed bill would limit the ability of states to require remote sellers to collect use tax. However, the bill failed to pass.

Congress Approves Permanent Extension of Internet Tax Freedom Act

Congress approved a permanent extension of the Internet Tax Freedom Act, signed into law by the President 02/24/16. More…

Internet Tax Freedom Act Extended Through October 1, 2016

The President signed an act to extend the Internet Tax Freedom Act through 10/01/16. More…

Internet Tax Freedom Act Extended Until December 11, 2015

U.S. House of Representatives passed a provision to extend the Internet Tax Freedom Act until 12/11/15. More…

House Introduces Remote Transactions Parity Act of 2015

U.S. House of Representatives introduced the Remote Transactions Parity Act of 2015 on 06/15/15. More…

Senate Introduces Marketplace Fairness Act of 2015

On March 10, 2015, a bipartisan group of senators introduced the Marketplace Fairness Act of 2015.

Internet Tax Freedom Act Extended Until October 1, 2015, Permanent Extension Introduced

On December 16, 2014, President Barack Obama signed an act including a provision that extends the Internet Tax Freedom Act until October 1, 2015.