Back to Sales Tax Updates

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 Sales Tax Rates
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
Remote Seller Nexus Rules
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.

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.

Internet Tax Freedom Act is Extended through December 11, 2014

President Barack Obama has signed federal legislation extending the Internet Tax Freedom Act through December 11, 2014.

North Dakota Changes Electronic Tax Filing System

North Dakota announced that its WebFile system for electronically filing sales and use tax (and personal income tax withholding) returns will be replaced by a Taxpayer Access Point (TAP) system.

SST Best Practices Matrix on Deal of the Day Vouchers

The Streamlined Sales and Use Tax (SST) Governing Board has issued a best practices matrix which provides answers to whether the state follows the best practices set forth in the SST Agreement regarding deal-of-the-day vouchers. All SST Member states are…

New Federal Digital Goods and Services Bill Proposed

Representative Lamar Smith (Republican, Texas) has introduced a bill to bar multiple taxes on digital goods and services. Smith had proposed an earlier bill which failed to pass. This bill is a revised version of the earlier bill. The proposed…

Federal Government Introduces New Remote Seller Bill

The federal Marketplace Fairness Act of 2013 was introduced in the House of Representatives and the Senate on February 14, 2013.

North Dakota Discusses Contractors’ Sales and Use Tax Responsibilities

In a sales tax newsletter, North Dakota discussed contractors’ responsibility for the payment of sales and use tax on tangible personal property (TPP) used in executing a contract. As they are the final users of all personal property consumed or…

North Dakota Enacts Telecommunications Infrastructure Exemption

Tangible personal property used to construct or expand telecommunications service infrastructure in North Dakota is exempt form sales and use tax, effective July 1, 2009, through June 30, 2011. To be exempt, the tangible personal property must be incorporated into…

North Carolina Phases Out Some Taxes Imposed On Manufacturers and Farmers

The North Carolina sales and use tax of 2.6% on sales of electricity to manufacturing industries and plants, and 2.83% on sales to farmers will be gradually phased out beginning October 1, 2007, and eventually eliminated effective July 1, 2010.…

North Dakota Amends Coal Conversion Facility Provisions

North Dakota has amended the definitions of “power plant” and “repowering” to include plants that process or convert coal. The definitions previously only addressed plants that processed or converted lignite. The legislation also provides for an exemption for the sale…

North Dakota Discusses Internet Sales.

In a sales tax newsletter, the North Dakota Office of the State Tax Commissioner discussed internet sales. They stated that internet sellers located in North Dakota are required to collect state and applicable local sales taxes on internet sales made…

North Dakota Exempts Environmental Upgrade Equipment.

In an amendment to current North Dakota law, environmental upgrade equipment used in power plants or for repowering existing power plants that began construction after June 30, 1991 is exempt from sales and use tax. An “environmental upgrade” is defined…

North Dakota Senate Bill Would Allow CSP’s to Claim Retailer’s Compensation.

Under SB 2359, a certified service provider (CSP) responsible for filing retailer’s taxes under the Streamlined Sales and Use Tax Agreement may be authorized by that retailer to claim all or part of any compensation owed to the retailer. Currently,…

North Dakota Submits Petition for Membership into the Agreement.

On February 28, 2005 North Dakota submitted a petition to the Governing Board of the Streamlined Sales and Use Tax Agreement for membership into the Agreement. Provided in conjunction with the petition was a compliance checklist, which will be used…

North Dakota Discusses Taxability of Software Maintenance Contracts.

The North Dakota State Tax Commissioner recently discussed the taxability of maintenance contracts as they pertain to computer software. They stated that a mandatory maintenance agreement is considered a component of the sale and is subject to sales tax. When…

Garbage and solid waste services taxable in South Dakota.

Gross receipts from garbage or solid waste disposal services are subject to the state’s 4% sales tax, but statutorily exempted from municipal sales taxes. Garbage disposal services include collection of recyclables and hazardous wastes, and tipping fees or landfill charges…

North Dakota issues guidelines on repair services.

The Tax Commissioner has clarified that repair services are not taxable but that tangible personal property transferred in connection with repair services is subject to sales or use tax. Service providers must separately state the repair charges on bills and…

North Dakota tax amnesty enacted.

North Dakota has passed legislation which creates a tax amnesty program running from October 1, 2003 through January 31, 2004. The tax amnesty program includes all state taxes and local option taxes administered by the Office of State Tax Commissioner.…