§ 37-17.5-02 — Business and employee status during and after disaster response period

North Dakota § 37-17.5-02

• Jurisdiction: North Dakota
• Title 37: Military
• Ch. 37-17.5: Disaster or Emergency Remediation Work

Text

1. An out-of-state business that conducts operations within this state for purposes of
performing disaster or emergency remediation work or services during the disaster
response period may not be considered to have established a business presence that
would require that business or its out-of-state employees to be subject to any state
and local taxes or fees including unemployment insurance, workers' compensation, or
taxes administered by the tax commissioner. The out-of-state business or out-of-state
employee shall have a valid license to perform that business or occupation from the
principal state of business or employment.
2. During the disaster response period, the out-of-state business or out-of-state
employee may not be required to file or pay any state or local tax administered by a
state agency. The out-of-state business or out-of-state employee may not be required
to pay any sales and use tax on equipment used or brought into this state temporarily
for use during the disaster response period if the equipment is removed from this state
within a reasonable period of time after the disaster response period.
3. For purposes of any state or local tax on or measured by, in whole or in part, net or
gross income or receipts, all activity of the out-of-state business conducted in this state
under this chapter must be disregarded with respect to any filing requirements for a
tax, including the income tax return required for a unitary or combined group of which
the out-of-state business may be a part. For the purpose of apportioning income, the
apportionment factors attributable to the performance by an out-of-state business of

any work under this chapter may not be sourced to this state by the out-of-state
business or any member of its affiliated group.
4. An out-of-state employee may not be considered to have established a presence in
this state which would require that individual or that individual's employer to file or pay
income taxes, be subject to income tax withholding, or file and pay any other state or
local tax or fee during the disaster response period. This includes any tax or fee
imposed by a state agency but does not include any transaction taxes or fees
described in subsection 5.
5. Out-of-state businesses and out-of-state employees are subject to fuel taxes and state
or local sales or use taxes on materials or services purchased, consumed, or used in
this state which are subject to sales or use taxes, hotel taxes, or car rental taxes or
fees which the out-of-state affiliated business or out-of-state employee purchases for
use or consumption in this state during the disaster response period.
6. Any out-of-state business or out-of-state employee that remains in this state after the
disaster response period is subject to any business or employee registration and tax
requirements that apply.
7. An employee's sole remedy for a workplace injury under this section is the employee's
out-of-state employer's workers compensation policy.