North Dakota Enacts Sales and Use Tax Exemption for Senior Citizen Organizations

North Dakota has enacted legislation effective June 30, 2021, that expands the sales and use tax exemptions for qualifying sales made to senior citizen organizations. Qualifying organizations include those that provide certain services for senior citizens including health, welfare, and counseling services.

To qualify for exempt sales to a senior citizen organization, the senior citizen organization must meet the following criteria:

1. Is recognized by the Internal Revenue Service as having exempt status under 26 U.S.C. 501(c)(3);
2. Is recognized by the Secretary of State as a charitable organization; and
3. Either:
   (1) Provides services through the Aging Services Division of the Department of Human Services; or
   (2) Receives grant funds through the Department of Transportation under the Federal Transit Administration’s Enhanced Mobility of Seniors and Individuals with Disabilities program [49 U.S.C. 5310].

(North Dakota H.B. 1351, Section 57-39.2-04, Effective June 30, 2021)