North Dakota 2025-2026 Regular Session

North Dakota House Bill HB1546

Introduced
1/20/25  
Refer
1/20/25  

Caption

A BILL for an Act to create and enact a new section to chapter 57-39.2 of the North Dakota Century Code, relating to a sales and use tax exemption for purchases made by a contractor, subcontractor, or builder on behalf of the state of North Dakota; to amend and reenact section 57-40.2-03.3 of the North Dakota Century Code, relating to use tax on contractors; and to provide an effective date.

Impact

If enacted, HB1546 will modify existing North Dakota tax law, particularly enhancing the provisions regarding contractor taxes. The most significant alteration is the introduction of a streamlined process aimed at exempting contractors' purchases from state sales and use tax, specifically when these acquisitions are intended for public property improvements. This legislation signifies an effort to support infrastructure development within the state by making it more economically viable for contractors to engage in public projects.

Summary

House Bill 1546 proposes a sales and use tax exemption for contractors, subcontractors, and builders purchasing materials for projects on behalf of the state of North Dakota. This bill aims to reduce the financial burden on contractors who are engaged in state projects by eliminating the sales tax applicable to tangible personal property used in such contracts. The proposed exemption is contingent upon the contractor obtaining a purchasing agent authorization letter from the state and an exemption certificate issued by the tax commissioner prior to acquiring the property.

Contention

Key points of contention surrounding HB1546 include concerns regarding the implications for local governments, as the exemption does not apply to taxes levied under home rule authority by municipalities. Critics may express worry that the bill will result in reduced revenue streams for local entities that depend on these taxes, thereby complicating budget management for cities and counties. Furthermore, discussions may arise regarding the feasibility of monitoring compliance with the new rules and determining which purchases qualify for the exemption.

Companion Bills

No companion bills found.

Previously Filed As

ND HB1546

A BILL for an Act to create and enact a new section to chapter 57-39.2 of the North Dakota Century Code, relating to a sales and use tax exemption for purchases made by a contractor, subcontractor, or builder on behalf of the state of North Dakota; to amend and reenact section 57-40.2-03.3 of the North Dakota Century Code, relating to use tax on contractors; and to provide an effective date.

ND SB2177

County budget limits and the allocation of sales tax revenue; to provide a continuing appropriation; and to provide an expiration date.

ND SB2177

AN ACT to create and enact a new section to chapter 57-39.2 of the North Dakota Century Code, relating to an animal agriculture facility infrastructure fund; to amend and reenact subsection 9 of section 11-23-02 and section 57-39.2-26 of the North Dakota Century Code, relating to county budget limits and the allocation of sales tax revenue; to provide a continuing appropriation; and to provide an expiration date.

ND HB1139

A sales tax exemption for fire departments; and to provide an effective date.

ND HB1139

AN ACT to create and enact a new subsection to section 57-39.2-04 of the North Dakota Century Code, relating to a sales tax exemption for fire departments; and to provide an effective date.

ND HB1571

The sales tax exemption for raw materials, single-use product contact systems, and reagents used for biologic manufacturing; and to provide an effective date.

ND HB1571

A BILL for an Act to amend and reenact subsection 3 of section 54-35-26 and section 57-40.2-03.3 of the North Dakota Century Code, relating to evaluation of economic development tax incentives and the use tax exemption for raw materials, single-use product contact systems, and reagents used for biologic manufacturing; to repeal section 57-39.2-04.19 of the North Dakota Century Code, relating to the sales tax exemption for raw materials, single-use product contact systems, and reagents used for biologic manufacturing; and to provide an effective date.

ND HB1428

A sales tax exemption for sales of clothing by a thrift store of a nonprofit corporation; and to provide an effective date.

ND HB1428

A BILL for an Act to create and enact a new subsection to section 57-39.2-04 of the North Dakota Century Code, relating to a sales tax exemption for sales of clothing by a thrift store of a nonprofit corporation; and to provide an effective date.

ND HB1295

The carbon dioxide pipeline exemption, payments in lieu of taxes for certain carbon dioxide pipeline property, and the carbon dioxide capture and injection sales tax exemption; and to provide an effective date.

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ND HB1546

A BILL for an Act to create and enact a new section to chapter 57-39.2 of the North Dakota Century Code, relating to a sales and use tax exemption for purchases made by a contractor, subcontractor, or builder on behalf of the state of North Dakota; to amend and reenact section 57-40.2-03.3 of the North Dakota Century Code, relating to use tax on contractors; and to provide an effective date.

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