§ 57-39.2-04.14 — Sales and use tax exemption for materials used in compressing, gathering, collecting, storing, transporting, or injecting carbon dioxide for secure geologic storage or use in enhanced recovery of oil or natural gas

North Dakota § 57-39.2-04.14

• Jurisdiction: North Dakota
• Title 57: Taxation
• Ch. 57-39.2: Sales Tax

Text

gathering, collecting, storing, transporting, or injecting carbon dioxide for secure
geologic storage or use in enhanced recovery of oil or natural gas.
1. Gross receipts from sales of tangible personal property used to construct or expand a
system used to compress, gather, collect, store, transport, or inject carbon dioxide for
secure geologic storage or use in enhanced recovery of oil or natural gas in this state
are exempt from taxes under this chapter. To be exempt, the tangible personal
property must be incorporated into a system used to compress, gather, collect, store,
transport, or inject carbon dioxide for secure geologic storage or use in enhanced
recovery of oil or natural gas. Tangible personal property used to replace an existing

system to compress, gather, collect, store, transport, or inject carbon dioxide for
secure geologic storage or use in enhanced recovery of oil or natural gas does not
qualify for exemption under this section unless the replacement creates an expansion
of the system.
2. To receive the exemption under this section at the time of purchase, the owner of the
gas compressing, gathering, collecting, storing, transporting, or injecting system must
receive from the tax commissioner a certificate that the tangible personal property
used to construct or expand a system used to compress, gather, collect, store,
transport, or inject carbon dioxide for secure geologic storage or use in enhanced
recovery of oil or natural gas qualifies for the exemption. If a certificate is not received
before the purchase, the owner shall pay the applicable tax imposed by this chapter
and apply to the tax commissioner for a refund.
3. If the tangible personal property is purchased or installed by a contractor subject to the
tax imposed by this chapter, the owner of the gas compressing, gathering, collecting,
storing, transporting, or injecting system may apply to the tax commissioner for a
refund of the difference between the amount remitted by the contractor and the
exemption imposed or allowed by this section. Application for a refund must be made
at the time and in the manner directed by the tax commissioner and must include
sufficient information to permit the tax commissioner to verify the sales and use taxes
paid and the exempt status of the sale or use.
4. This chapter and chapter 57-40.2 apply to the exemption under this section.