The bill amends subsection 4 of section 57-39.2-04 of the North Dakota Century Code, which pertains to the exemption of sales from educational, religious, or charitable activities conducted by nonprofit organizations in both publicly and privately owned facilities. The amendment specifies that gross receipts from such activities are exempt only if the entire net amount is used for educational, religious, or charitable purposes. Notably, the bill introduces a new provision that excludes gross receipts from taxable sales exceeding ten thousand dollars for events not otherwise exempt if held in a publicly owned facility where market rent has not been paid. Additionally, it clarifies that gross receipts from activities where the seller competes with retailers through inventory or regular sales are not exempt.

The bill also retains existing exemptions for gross receipts from state, county, district, and local fairs, as well as for institutions of higher education and public school districts, provided the funds are used according to specified regulations. The effective date for this amendment is set for taxable events occurring after June 30, 2025.

Statutes affected:
INTRODUCED: 57-39.2-04
Prepared by the Legislative Council staff for Senator Rummel: 57-39.2-04
FIRST ENGROSSMENT: 57-39.2-04