The proposed bill amends section 57-39.2-04 of the North Dakota Century Code to establish a sales tax exemption for gross receipts from sales of clothing made by thrift stores owned and operated by nonprofit corporations that are exempt from federal taxation under section 501(c)(3) of the Internal Revenue Code. The bill removes the term "used" from the definition of clothing eligible for the exemption, thereby broadening the scope of the exemption to include all clothing sold by these thrift stores.

Additionally, the bill provides detailed definitions for various terms related to clothing and accessories, including "clothing," "clothing accessories or equipment," "protective equipment," and "sport or recreational equipment." These definitions clarify what items are included or excluded from the exemption. The bill is set to take effect for taxable events occurring after June 30, 2025.