§ 57-39.5-02 — Imposition - Transfer of funds - Exemptions

North Dakota § 57-39.5-02

• Jurisdiction: North Dakota
• Title 57: Taxation
• Ch. 57-39.5: Farm Machinery Gross Receipts Tax

Text

There is imposed a tax of three percent upon the gross receipts of retailers from all sales at
retail, including the leasing or renting, of farm machinery or irrigation equipment used
exclusively for agricultural purposes. After July first of each year, five hundred thousand dollars
of taxes collected under this chapter must be transferred to the state treasurer who shall deposit
the moneys in the agricultural research fund. Gross receipts from sales at retail of farm
machinery or irrigation equipment are exempted from the tax imposed by this chapter when the
sale, lease, or rental is made to a purchaser or lessor who is entitled to a sales and use tax
exemption under subsection 6 or 12 of section 57-39.2-04 on otherwise taxable sales at retail.
There are specifically exempted from the tax imposed by this chapter the gross receipts from
the sale, lease, or rental of used farm machinery, farm machinery repair parts, used irrigation
equipment, or irrigation equipment repair parts used exclusively for agricultural purposes. For
purposes of this section, "used" means:
1. Tax under this chapter or chapter 57-39.2 or 57-40.2 has been paid on a previous sale;
2. Tax under section 57-39.5-06 has been paid under a previous lease;
3. Originally purchased outside this state and previously owned by a farmer; or
4. Has been under rental for three years or more.