§ 57-39.2-04.15 — Sales and use tax exemption for materials used to construct a fertilizer or chemical processing facility

North Dakota § 57-39.2-04.15

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

Text

or chemical processing facility.
1. Gross receipts from sales of tangible personal property used to construct a fertilizer or
chemical processing facility in this state, and any component integral to the fertilizer or
chemical processing plant, are exempt from taxes under this chapter. To be exempt,
the tangible personal property must be incorporated in the structure of the facility or
used in the construction process to the point of having no residual economic value.
The exemption provided in this section applies to all phases of construction under the
permit or application for permit required by subsection 2. An integral component to the
fertilizer or chemical processing plant:
a. May be owned directly or indirectly by the fertilizer or chemical processing facility,
or by an unrelated third party;
b. Must be located at the facility site; and
c. Must be necessary for the plant's processing of fertilizer or chemicals.
2. The owner of the fertilizer or chemical processing plant must receive from the
department of environmental quality an air quality permit or a notice that the air quality
permit application is complete. The owner shall provide this documentation to the tax
commissioner to qualify for the exemption under this section. Denial, expiration, or
revocation of a permit terminates the exemption under this section.
3. To receive the exemption under this section at the time of purchase, the owner of the
processing facility must receive from the tax commissioner a certificate that the
tangible personal property used to construct the processing facility which the owner
intends to purchase qualifies for 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.
4. If the tangible personal property is purchased or installed by a contractor subject to the
tax imposed by this chapter, the owner may apply for a refund of the difference
between the amount remitted by the contractor and the exemption imposed or allowed
by this section. Application for refund must be made at the times 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.

5. For purposes of this section, a fertilizer or chemical processing facility means a
processing plant that produces for retail or wholesale a fertilizer, chemical, or chemical
derivative from natural gas, natural gas liquids, or crude oil components.