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 effective date of this Act is set for taxable events occurring after June 30, 2025. The bill received unanimous support in the Senate and a majority in the House, indicating strong legislative backing for the changes proposed.

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