North Dakota House Bill HB1281

North Dakota 2025-2026 Regular Session

• Introduced: 1/13/25
• Refer: 1/13/25
• Report Pass: 1/23/25
• Engrossed: 1/28/25
• Refer: 2/13/25
• Report Pass: 3/7/25
• Enrolled: 3/12/25
• Passed: 3/18/25

Caption

AN ACT to amend and reenact sections 57-43.1-03.3, 57-43.2-04.5, and 57-43.3-03.1 of the North Dakota Century Code, relating to motor vehicle fuel tax, special fuels tax, and aviation fuel tax refunds for fuels purchased by fire departments; and to provide an effective date.

Summary

HB 1281 expands and clarifies North Dakota’s fuel tax refund provisions for emergency response entities. The bill amends three sections of the Century Code governing refunds of motor vehicle fuel tax, special fuels tax, and aviation fuel tax so that, in addition to licensed emergency medical services operations, fire departments are expressly entitled to refunds for eligible fuel purchases and use. It also defines “fire department” for these refund provisions as a fire department or fire district that has filed and had approved a certificate of existence under section 18-04-02. The bill applies to fuel taxes paid on motor vehicle fuel, special fuel, and aviation fuel purchased and used by qualifying fire departments, and it specifies that the refunds are not reduced by deposits into the agricultural products utilization fund or the agricultural research fund. The act takes effect for taxable events occurring after June 30, 2025, meaning the refund changes apply prospectively rather than retroactively.

Impact

HB 1281 amends sections 57-43.1-03.3, 57-43.2-04.5, and 57-43.3-03.1 of the North Dakota Century Code to add fire departments and fire districts to the list of entities eligible for fuel tax refunds. This changes state tax administration by allowing qualifying fire departments to recover taxes paid on fuel used in their operations, which may reduce operating costs for local fire protection and emergency response agencies. It also clarifies eligibility by tying the definition of fire department to the certificate-of-existence requirement in chapter 18-04.

Sentiment

The bill appears to have broad bipartisan support and little visible opposition. It passed the House 93-0 and the Senate 47-0, indicating unanimous approval in both chambers. The absence of committee transcript material suggests no recorded controversy in the available context, and the votes reflect a generally favorable view of providing tax relief to fire departments and emergency services.

Contention

No significant points of contention are evident in the available record. The main policy choice is the expansion of refund eligibility from emergency medical services operations to fire departments and fire districts, along with the requirement that a fire department have an approved certificate of existence. If any concern existed, it would likely relate to the fiscal impact of extending tax refunds or to the administrative verification of eligible fire departments, but no opposition is reflected in the votes or committee materials provided.