21.0750.01000
Sixty-seventh
Legislative Assembly HOUSE BILL NO. 1309
of North Dakota
Introduced by
Representatives B. Koppelman, Delzer, Dockter, Ertelt, Hatlestad, Headland, Kasper,
Kempenich, Schmidt
Senators Clemens, Kannianen
1 A BILL for an Act to amend and reenact section 57-40.2-03.3 of the North Dakota Century
2 Code, relating to payment of use tax by contractors; and to provide an effective date.
3 BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
4 SECTION 1. AMENDMENT. Section 57-40.2-03.3 of the North Dakota Century Code is
5 amended and reenacted as follows:
6 57-40.2-03.3. Use tax on contractors.
7 1. When a contractor or subcontractor uses tangible personal property in the
8 performance of that person's contract, or to fulfill contract or subcontract obligations,
9 whether the title to suchthe property be in the contractor, subcontractor, contractee,
10 subcontractee, or any other person, or whether the titleholder of suchthe property
11 would be subject to pay the sales or use tax, suchthe contractor or subcontractor shall
12 pay a use tax at the rate prescribed by section 57-40.2-02.1 measured by the
13 purchase price or fair market value of such property, whichever is greater, unless
14 suchthe property has been previously subjected to a sales tax or use tax by this state,
15 and the tax due thereon has been paid. This section does not apply to a contractor or
16 subcontractor that does not enter a contract for the purchase of the tangible personal
17 property.
18 2. The provisions of this chapter pertaining to the administration of the tax imposed by
19 section 57-40.2-02.1, not in conflict with the provisions of this section, govern the
20 administration of the tax levied by this section.
21 3. The tax imposed by this section does not apply to medical equipment purchased as
22 tangible personal property by a hospital or by a long-term care facility as defined in
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Legislative Assembly
1 section 50-10.1-01 and subsequently installed by a contractor into such hospital or
2 facility.
3 4. The tax imposed by this section does not apply to:
4 a. Production equipment or tangible personal property as authorized or approved
5 for exemption by the tax commissioner under section 57-39.2-04.2;
6 b. Machinery, equipment, or other tangible personal property used to construct an
7 agricultural commodity processing facility as authorized or approved for
8 exemption by the tax commissioner under section 57-39.2-04.3 or 57-39.2-04.4;
9 c. Tangible personal property used to construct or expand a system used to
10 compress, process, gather, or refine gas recovered from an oil or gas well in this
11 state or used to expand or build a gas-processing facility in this state as
12 authorized or approved for exemption by the tax commissioner under section
13 57-39.2-04.5;
14 d. Tangible personal property used to construct or expand a qualifying oil refinery as
15 authorized or approved for exemption by the tax commissioner under section
16 57-39.2-04.6;
17 e. Tangible personal property used to construct or expand a qualifying facility as
18 authorized or approved for exemption by the tax commissioner under section
19 57-39.2-04.10;
20 f. Tangible personal property used to construct or expand a qualifying facility as
21 authorized or approved for exemption by the tax commissioner under section
22 57-39.2-04.11;
23 g. Materials used in compressing, gathering, collecting, storing, transporting, or
24 injecting carbon dioxide for use in enhanced recovery of oil or natural gas as
25 provided in section 57-39.2-04.14; or
26 h. Tangible personal property used to construct a qualifying fertilizer or chemical
27 processing facility as authorized or approved for exemption by the tax
28 commissioner under section 57-39.2-04.15.
29 i. Tangible personal property used to construct a qualified straddle plant, a qualified
30 fractionator, or qualified associated infrastructure as authorized or approved for
31 exemption by the tax commissioner under section 57-39.2-04.16.
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Legislative Assembly
1 SECTION 2. EFFECTIVE DATE. This Act is effective for contracts entered after June 30,
2 2020.
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Statutes affected:
INTRODUCED: 57-40.2-03.3
FIRST ENGROSSMENT: 57-40.2-03.3
Enrollment: 57-40.2-03.3