§ 57-38-01 — Definitions

North Dakota § 57-38-01

• Jurisdiction: North Dakota
• Title 57: Taxation
• Ch. 57-38: Income Tax

Text

As used in this chapter, unless the context or subject matter otherwise requires:
1. "Chronically mentally ill" means a person who, as a result of a mental disorder, exhibits
emotional or behavioral functioning which is so impaired as to interfere substantially
with the person's capacity to remain in the community without verified supportive
treatment or services of a long-term or indefinite duration. This mental disability must
be severe and persistent, resulting in a long-term limitation of the person's functional
capacities for primary activities of daily living such as interpersonal relationships,
homemaking, self-care, employment, and recreation.
2. "Corporation" includes associations, business trusts, joint stock companies, and
insurance companies.
3. "Developmental disability" has the same meaning as defined in section 25-01.2-01.
4. "Domestic" when applied to a corporation means created or organized under the laws
of North Dakota.
5. "Federal Internal Revenue Code of 1954, as amended", "United States Internal
Revenue Code of 1954, as amended", and "Internal Revenue Code of 1954, as
amended", mean the United States Internal Revenue Code of 1986, as amended.
Reference to the Internal Revenue Code of 1954, as amended, includes a reference to
the United States Internal Revenue Code of 1986, as amended, and reference to the
United States Internal Revenue Code of 1986, as amended, includes a reference to
the provisions of law formerly known as the Internal Revenue Code of 1954, as
amended.
a. Except that the provisions of section 168(f)(8) of the Internal Revenue Code of
1954, as amended, are not adopted in those instances when the minimum
investment by the lessor is less than one hundred percent for the purpose of
computing North Dakota taxable income for individuals, estates, trusts, and
corporations for taxable years beginning on or after January 1, 1983. Therefore,
federal taxable income must be increased, or decreased, as the case may be, to
reflect the adoption or nonadoption of the provisions of section 168(f)(8) of the
Internal Revenue Code of 1954, as amended, and such adjustments must be
made before computing income subject to apportionment.
b. Provided, that one-half of the amount not allowed as an accelerated cost
recovery system depreciation deduction for the taxable year beginning after
December 31, 1982, may be deducted from federal taxable income in each of the
next two taxable years beginning after December 31, 1985, and one-half of the
amount not allowed as an accelerated cost recovery system depreciation
deduction for the taxable year beginning after December 31, 1983, may be
deducted from federal taxable income in each of the next two years beginning
after December 31, 1987, and one-half of the amount not allowed as an
accelerated cost recovery system depreciation deduction for the taxable year
beginning after December 31, 1984, may be deducted from federal taxable
income in each of the next two taxable years beginning after December 31, 1989.
All such adjustments must be made before computing income subject to
apportionment.
c. Provided, that the depreciation adjustments allowed in subdivision b shall be
limited to those eligible assets acquired during taxable years beginning after
December 31, 1982. Acquisitions made before taxable years beginning
January 1, 1983, must be depreciated pursuant to the methods permissible under
Internal Revenue Code provisions in effect prior to January 1, 1981.
d. Except that for purposes of applying the Internal Revenue Code of 1954, as
amended, with respect to actual distributions made after December 31, 1984, by
a domestic international sales corporation, or former domestic international sales
corporation, which was a domestic international sales corporation on

December 31, 1984, any accumulated domestic international sales corporation
income of a domestic international sales corporation, or former domestic
international sales corporation, which is derived before January 1, 1985, may not
be treated as previously taxed income.
6. "Foreign" when applied to a corporation means created or organized outside of North
Dakota.
7. "Mental disorder" means a substantial disorder of the person's emotional processes,
thought, cognition, or memory. Mental disorder is distinguished from:
a. Conditions which are primarily those of drug abuse, alcoholism, or intellectual
disability, unless in addition to one or more of these conditions, the person has a
mental disorder.
b. The declining mental abilities that accompany impending death.
c. Character and personality disorders characterized by lifelong and deeply
ingrained antisocial behavior patterns, including sexual behaviors which are
abnormal and prohibited by statute, unless the behavior results from a mental
disorder.
8. "Passthrough entity" means a corporation that for the applicable tax year is treated as
an S corporation under the Internal Revenue Code, a limited liability company that for
the applicable tax year is not taxed as a corporation for federal income tax purposes, a
general partnership, limited partnership, limited liability partnership, limited liability
limited partnership, trust, or a similar entity that passes its income, deductions, and
credits through to its owners.
9. "Person" includes individuals, fiduciaries, partnerships, corporations, and limited
liability companies, and other entities recognized by the laws of this state.
10. "Qualified investment fund" means any regulated investment company as defined
under the Internal Revenue Code, which for the calendar year in which the distribution
is paid:
a. Has investments in interest-bearing obligations issued by or on behalf of this
state, any political subdivision of this state, or the United States government; and
b. Has provided the tax commissioner with a detailed schedule of the assets
contained in its investment portfolio and a schedule of the income attributable to
each asset in its investment portfolio for the calendar year.
11. "Resident" applies only to natural persons and includes, for the purpose of determining
liability for the tax imposed by this chapter upon or with reference to the income of any
income year, any person domiciled in the state of North Dakota and any other person
who maintains a permanent place of abode within the state and spends in the
aggregate more than seven months of the income year within the state. A full-time
active duty member of the armed forces assigned to a military installation in this state,
or the member's spouse, is not a "resident" of this state for purposes of this chapter
simply by reason of having voted in an election in this state.
12. "Tax commissioner" means the state tax commissioner.
13. "Taxable income" in the case of individuals, estates, trusts, and corporations means
the taxable income as computed for an individual, estate, trust, or corporation for
federal income tax purposes under the United States Internal Revenue Code of 1954,
as amended, plus or minus the adjustments as may be provided by this chapter or
other provisions of law. Except as otherwise expressly provided, "taxable income"
does not include any amount computed for federal alternative minimum tax purposes.
14. "Taxpayer" includes any individual, corporation, or fiduciary subject to a tax imposed
by this chapter.
15. Any term, as used in this code, as it pertains to the filing and reporting of income,
deductions, or exemptions or the paying of North Dakota income tax, has the same
meaning as when used in a comparable context in the laws of the United States
relating to federal income taxes, unless a different meaning is clearly required or
contemplated.