§ 57-40.2-01 — Definitions

North Dakota § 57-40.2-01

• Jurisdiction: North Dakota
• Title 57: Taxation
• Ch. 57-40.2: Use Tax

Text

In this chapter, unless the context and subject matter otherwise require:
1. "Business", "certified automated system", "certified service provider", "commissioner",
"computer software contract", "farm machinery", "gross receipts", "lease or rental",
"local governmental unit", "mandatory computer software maintenance contract",
"optional computer software maintenance contract", "person", "relief agency", "retail
sale", "sale", and "tangible personal property", each has the meaning given to it in
section 57-39.2-01.
2. Property used in "processing", as that term is used in subsection 9, means any
tangible personal property including containers which it is intended, by means of
fabrication, compounding, manufacturing, producing, or germination, shall become an
integral or an ingredient or component part of other tangible personal property
intended to be sold ultimately at retail. The purchase of an item of tangible personal
property for the purpose of incorporating it in or attaching it to real property must be
considered as a purchase of tangible personal property for a purpose other than for
processing.
3. "Purchase" means any transfer of title or possession, exchange, or barter, conditional
or otherwise, in any manner or by any means whatsoever, for a consideration.
"Purchase" also means the severing of sand or gravel from the soil of this state.
4. "Purchase price" applies to the measure subject to use tax and has the same meaning
as gross receipts as defined in section 57-39.2-01.
5. "Purchased at retail" includes:
a. The completion of the fabricating, compounding, or manufacturing of tangible
personal property by a person for storage, use, or consumption by that person.
b. The furnishing of wares, merchandise, and gas, when furnished or delivered to
consumers or users within this state, and the sale of vulcanizing, recapping, and
retreading services for tires.
c. The leasing or renting of tangible personal property, the sale, storage, use, or
consumption of which has not been previously subjected to a retail sales or use
tax in this state.
d. The purchase of magazines or other periodicals. Provided, the words "magazines
and other periodicals" as used in this subdivision do not include newspapers nor
magazines or periodicals that are furnished free by a nonprofit corporation or
organization to its members or because of payment by its members of
membership fees or dues.
e. The severance of sand or gravel from the soil.
f. The purchase, including the leasing or renting, of tangible personal property from
any bank for storage, use, or consumption.
g. The purchase of an item of tangible personal property by a purchaser who rents
or leases it to a person under a finance leasing agreement over the term of which
the property will be substantially consumed, if the purchaser elects to treat it as
being purchased at retail by paying or causing the transferor to pay the use tax to
the commissioner on or before the last day on which payments may be made
without penalty as provided in section 57-40.2-07.
6. "Retailer" includes every person engaged in the business of selling tangible personal
property for use within the meaning of this chapter, but, when in the opinion of the
commissioner, it is necessary for the efficient administration of this chapter to regard
any salesman, representative, trucker, peddler, or canvasser as the agent of the
dealer, distributor, supervisor, employer, or other person under whom that person
operates or from whom that person obtains the tangible personal property sold by that
person, whether that person is making sales in that person's own behalf or in behalf of
such dealer, distributor, supervisor, employer, or other person, the commissioner may

regard that person as such agent, and may regard the dealer, distributor, supervisor,
employer, or other person as a retailer for the purposes of this chapter.
7. "Retailer maintaining a place of business in this state", or any like term, means any
retailer having or maintaining within this state, directly or by a subsidiary, an office,
distribution house, sales house, warehouse, or other place of business, or any agent
operating within this state under the authority of the retailer or its subsidiary, whether
such place of business or agent is located in the state permanently or temporarily, or
whether or not such retailer or subsidiary is authorized to do business within this state.
8. "Use" means the exercise by any person of any right or power over tangible personal
property incident to the ownership or possession of that property, including the
storage, use, or consumption of that property in this state, except that it does not
include processing, or the sale of that property in the regular course of business. "Use"
also means the severing of sand or gravel from the soil of this state for use within or
outside this state.
9. "Use tax" means the tax levied under section 57-40.2-02.1 or imposed under home
rule authority by a city or county.