North Dakota § 57-39.5-01.1 Trade-in deduction

North Dakota Statutes

§ 57-39.5-01.1 — Trade-in deduction

North Dakota § 57-39.5-01.1

Title 57Taxation

Ch. 57-39.5Farm Machinery Gross Receipts Tax

This text of North Dakota § 57-39.5-01.1 (Trade-in deduction) is published on Counsel Stack Legal Research, covering North Dakota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

N.D. Cent. Code § 57-39.5-01.1 (2026).

Text

1.When tangible personal property is taken in trade or in a series of trades as a credit or partial payment of a retail sale or lease agreement which is taxable under this chapter, if the tangible personal property traded in will be subject to gross receipts taxes imposed by this chapter, sales taxes imposed by chapter 57-39.2, or motor vehicle excise taxes imposed by chapter 57-40.3, or if the tangible personal property traded in is used farm machinery or used irrigation equipment, the credit or trade-in value allowed by the retailer is not gross receipts.

2.Tangible personal property owned or leased and in possession of a farmer may be used as a trade-in to reduce the taxable purchase price of farm machinery or irrigation equipment used exclusively for agricultural purposes if:

a.The

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1. When tangible personal property is taken in trade or in a series of trades as a credit or
partial payment of a retail sale or lease agreement which is taxable under this chapter,
if the tangible personal property traded in will be subject to gross receipts taxes
imposed by this chapter, sales taxes imposed by chapter 57-39.2, or motor vehicle
excise taxes imposed by chapter 57-40.3, or if the tangible personal property traded in
is used farm machinery or used irrigation equipment, the credit or trade-in value
allowed by the retailer is not gross receipts.
2. Tangible personal property owned or leased and in possession of a farmer may be
used as a trade-in to reduce the taxable purchase price of farm machinery or irrigation
equipment used exclusively for agricultural purposes if:
a. The retailer selling farm machinery or irrigation equipment to a lessor, for the
purpose of leasing to a farmer, also purchases the machinery or equipment
owned or leased and in possession of the farmer. The purchase price paid by the
retailer for the equipment owned or leased and in the possession of a farmer is
the trade-in value for purposes of this section;
b. The retailer's sale of farm machinery or irrigation equipment to a lessor for the
purpose of leasing to a farmer and the retailer's purchase of equipment owned or
leased and in the possession of a farmer are documented by an invoice or other
documents prepared by the retailer to substantiate the trade-in relationship;
c. The lessor purchasing the farm machinery or irrigation equipment for the purpose
of leasing to a farmer pays the taxes imposed under this chapter on the purchase
price of the equipment less the trade-in value in subdivision a; and
d. The retailer and the lessor maintain records documenting compliance with the
requirements in subdivisions a, b, and c.
3. For purposes of this section, "farmer" means any person that leases farm machinery
as defined in this chapter or irrigation equipment to be used exclusively for agricultural
purposes.