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 exemption does not apply to gross receipts exceeding ten thousand dollars for events held in publicly owned facilities unless market rent has been paid, nor does it apply if the seller competes with retailers through maintaining inventory or conducting regular retail sales.

Additionally, the bill clarifies that gross receipts from certain activities, such as those conducted by institutions of higher education, public school districts, and nonprofit music or dramatic arts organizations, remain exempt under specific conditions. 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
Enrollment: 57-39.2-04