This bill amends subsection 2 of section 57-40.3-04 of the North Dakota Century Code to expand the motor vehicle excise tax exemption to include tribal governments. The new language specifies that any motor vehicle procured by, owned, or in possession of various government entities—including the federal government, state government, political subdivisions, and tribal governments of federally recognized Indian tribes within state reservations—will be exempt from this tax. Additionally, it clarifies that a person acting on behalf of the North Dakota lottery is also included when the vehicle is awarded as a prize.

Furthermore, the bill defines "Indian tribe" as a tribal government agency, instrumentality, or political subdivision that performs essential government functions, explicitly excluding business entities or agencies primarily focused on operating a business enterprise. The effective date for this amendment is set for taxable events occurring after June 30, 2025.

Statutes affected:
INTRODUCED: 57-40.3-04
Adopted by the House Transportation Committee: 57-40.3-04
Enrollment: 57-40.3-04