§ 57-39.4-11 — (310) General sourcing rules

North Dakota § 57-39.4-11

• Jurisdiction: North Dakota
• Title 57: Taxation
• Ch. 57-39.4: Streamlined Sales and Use Tax Agreement

Text

1. Except as provided in section 57-39.4-11.1, a retail sale, excluding lease or rental, of a
product shall be sourced as follows:
a. When the product is received by the purchaser at a business location of the
seller, the sale is sourced to that business location.
b. When the product is not received by the purchaser at a business location of the
seller, the sale is sourced to the location where receipt by the purchaser, or the
purchaser's donee, designated as such by the purchaser, occurs, including the
location indicated by instructions for delivery to the purchaser or donee, known to
the seller.
c. When subdivisions a and b do not apply, the sale is sourced to the location
indicated by an address for the purchaser that is available from the business
records of the seller that are maintained in the ordinary course of the seller's
business when use of this address does not constitute bad faith.
d. When subdivisions a, b, and c do not apply, the sale is sourced to the location
indicated by an address for the purchaser obtained during the consummation of
the sale, including the address of a purchaser's payment instrument, if no other
address is available, when use of this address does not constitute bad faith.
e. When none of the previous rules of subdivisions a, b, c, and d apply, including the
circumstance in which the seller is without sufficient information to apply the
previous rules, then the location will be determined by the address from which
tangible personal property was shipped, from which the digital good or the
computer software delivered electronically was first available for transmission by
the seller, or from which the service was provided, disregarding for these
purposes any location that merely provided the digital transfer of the product sold.
2. The lease or rental of tangible personal property, other than property identified in
subsection 3 or 4, shall be sourced as follows:

a. For a lease or rental that requires recurring periodic payments, the first periodic
payment is sourced the same as a retail sale in accordance with the provisions of
subsection 1. Periodic payments made subsequent to the first payment are
sourced to the primary property location for each period covered by the payment.
The primary property location shall be as indicated by an address for the property
provided by the lessee that is available to the lessor from its records maintained
in the ordinary course of business, when use of this address does not constitute
bad faith. The property location shall not be altered by intermittent use at different
locations, such as use of business property that accompanies employees on
business trips and service calls.
b. For a lease or rental that does not require recurring periodic payments, the
payment is sourced the same as a retail sale in accordance with the provisions of
subsection 1.
c. This subsection does not affect the imposition or computation of sales or use tax
on leases or rentals based on a lump sum or accelerated basis, or on the
acquisition of property for lease.
3. The lease or rental of motor vehicles, trailers, semitrailers, or aircraft that do not qualify
as transportation equipment, as defined in subsection 4, shall be sourced as follows:
a. For a lease or rental that requires recurring periodic payments, each periodic
payment is sourced to the primary property location. The primary property
location shall be as indicated by an address for the property provided by the
lessee that is available to the lessor from its records maintained in the ordinary
course of business, when use of this address does not constitute bad faith. This
location shall not be altered by intermittent use at different locations.
b. For a lease or rental that does not require recurring periodic payments, the
payment is sourced the same as a retail sale in accordance with the provisions of
subsection 1.
c. This subsection does not affect the imposition or computation of sales or use tax
on leases or rentals based on a lump sum or accelerated basis or on the
acquisition of property for lease.
4. The retail sale, including lease or rental, of transportation equipment shall be sourced
the same as a retail sale in accordance with the provisions of subsection 1,
notwithstanding the exclusion of lease or rental in subsection 1. "Transportation
equipment" means any of the following:
a. Locomotives and railcars that are utilized for the carriage of persons or property
in interstate commerce.
b. Trucks and truck-tractors with a gross vehicle weight rating of 10,001 pounds
[4535.92 kilograms] or greater, trailers, semitrailers, or passenger buses that are:
(1) Registered through the international registration plan; and
(2) Operated under authority of a carrier authorized and certificated by the
United States department of transportation or another federal authority to
engage in the carriage of persons or property in interstate commerce.
c. Aircraft that are operated by air carriers authorized and certificated by the United
States department of transportation or another federal or a foreign authority to
engage in the carriage of persons or property in interstate or foreign commerce.
d. Containers designed for use on and component parts attached or secured on the
items set forth in subdivisions a, b, and c.