§ 57-40.2-03.3 — Use tax on contractors (Effective through June 30, 2029)

North Dakota § 57-40.2-03.3

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

Text

1. When a contractor or subcontractor uses tangible personal property in the
performance of that person's contract, or to fulfill contract or subcontract obligations,
whether the title to the property be in the contractor, subcontractor, contractee,
subcontractee, or any other person, or whether the titleholder of the property would be
subject to pay the sales or use tax, the contractor or subcontractor shall pay a use tax
at the rate prescribed by section 57-40.2-02.1 measured by the purchase price or fair
market value of such property, whichever is greater, unless the property has been
previously subjected to a sales tax or use tax by this state, and the tax due has been
paid. This section does not apply to a contractor or subcontractor that does not enter a
contract for the purchase of the tangible personal property.
2. The provisions of this chapter pertaining to the administration of the tax imposed by
section 57-40.2-02.1, not in conflict with the provisions of this section, govern the
administration of the tax levied by this section.
3. The tax imposed by this section does not apply to:
a. Production equipment or tangible personal property as authorized or approved for
exemption by the tax commissioner under section 57-39.2-04.2;
b. Machinery, equipment, or other tangible personal property used to construct an
agricultural commodity processing facility as authorized or approved for
exemption by the tax commissioner under section 57-39.2-04.3 or 57-39.2-04.4;
c. Tangible personal property used to construct or expand a system used to
compress, process, gather, or refine gas recovered from an oil or gas well in this
state or used to expand or build a gas-processing facility in this state as
authorized or approved for exemption by the tax commissioner under section
57-39.2-04.5;
d. Tangible personal property used to construct or expand a qualifying oil refinery as
authorized or approved for exemption by the tax commissioner under section
57-39.2-04.6;
e. Tangible personal property used to construct or expand a qualifying facility as
authorized or approved for exemption by the tax commissioner under section
57-39.2-04.10;

f. Tangible personal property used to construct or expand a qualifying facility as
authorized or approved for exemption by the tax commissioner under section
57-39.2-04.11;
g. Materials used in compressing, gathering, collecting, storing, transporting, or
injecting carbon dioxide for use in enhanced recovery of oil or natural gas as
provided in section 57-39.2-04.14;
h. Tangible personal property used to construct a qualifying fertilizer or chemical
processing facility as authorized or approved for exemption by the tax
commissioner under section 57-39.2-04.15; or
i. Tangible personal property used to construct a qualified straddle plant, a qualified
fractionator, or qualified associated infrastructure as authorized or approved for
exemption by the tax commissioner under section 57-39.2-04.16.
j. Tangible personal property as authorized or approved for exemption by the
tax commissioner as provided in section 57-39.2-04.21.
k. Tangible personal property as authorized or approved for exemption by the
tax commissioner as provided in section 57-39.2-04.20.
l. Raw materials, single-use product contact systems, and reagents used for
biologic manufacturing as authorized or approved for exemption by the
tax commissioner under section 57-39.2-04.19.
Use tax on contractors. (Effective after June 30, 2029)
1. When a contractor or subcontractor uses tangible personal property in the
performance of that person's contract, or to fulfill contract or subcontract obligations,
whether the title to the property be in the contractor, subcontractor, contractee,
subcontractee, or any other person, or whether the titleholder of the property would be
subject to pay the sales or use tax, the contractor or subcontractor shall pay a use tax
at the rate prescribed by section 57-40.2-02.1 measured by the purchase price or fair
market value of such property, whichever is greater, unless the property has been
previously subjected to a sales tax or use tax by this state, and the tax due has been
paid. This section does not apply to a contractor or subcontractor that does not enter a
contract for the purchase of the tangible personal property.
2. The provisions of this chapter pertaining to the administration of the tax imposed by
section 57-40.2-02.1, not in conflict with the provisions of this section, govern the
administration of the tax levied by this section.
3. The tax imposed by this section does not apply to:
a. Production equipment or tangible personal property as authorized or approved for
exemption by the tax commissioner under section 57-39.2-04.2;
b. Machinery, equipment, or other tangible personal property used to construct an
agricultural commodity processing facility as authorized or approved for
exemption by the tax commissioner under section 57-39.2-04.3 or 57-39.2-04.4;
c. Tangible personal property used to construct or expand a system used to
compress, process, gather, or refine gas recovered from an oil or gas well in this
state or used to expand or build a gas-processing facility in this state as
authorized or approved for exemption by the tax commissioner under section
57-39.2-04.5;
d. Tangible personal property used to construct or expand a qualifying oil refinery as
authorized or approved for exemption by the tax commissioner under section
57-39.2-04.6;
e. Tangible personal property used to construct or expand a qualifying facility as
authorized or approved for exemption by the tax commissioner under section
57-39.2-04.10;
f. Tangible personal property used to construct or expand a qualifying facility as
authorized or approved for exemption by the tax commissioner under section
57-39.2-04.11;
g. Materials used in compressing, gathering, collecting, storing, transporting, or
injecting carbon dioxide for use in enhanced recovery of oil or natural gas as
provided in section 57-39.2-04.14;

h. Tangible personal property used to construct a qualifying fertilizer or chemical
processing facility as authorized or approved for exemption by the tax
commissioner under section 57-39.2-04.15; or
i. Tangible personal property used to construct a qualified straddle plant, a qualified
fractionator, or qualified associated infrastructure as authorized or approved for
exemption by the tax commissioner under section 57-39.2-04.16.
j. Tangible personal property as authorized or approved for exemption by the
tax commissioner as provided in section 57-39.2-04.21.
k. Tangible personal property as authorized or approved for exemption by the
tax commissioner as provided in section 57-39.2-04.20.