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 publicly or privately owned facilities. The amendment specifies that gross receipts from such activities are exempt only if the entire amount of net receipts is used for educational, religious, or charitable purposes. Notably, the bill introduces a new condition that gross receipts from taxable sales exceeding ten thousand dollars for events held in publicly owned facilities will not be exempt unless market rent has been paid. Additionally, it clarifies that the exemption does not apply if the seller competes with retailers by maintaining inventory or conducting regular retail sales.

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 that the receipts are used in accordance with specified regulations. The effective date for this legislation 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
Enrollment: 57-39.2-04