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.
HB 1139 creates a new sales tax exemption in North Dakota for gross receipts from sales made to a fire department when the purchase is for the purpose of providing fire protection services. The bill defines “fire department” for this exemption as a fire department or fire district that has filed an approved certificate of existence under state law.
The exemption is added to section 57-39.2-04 of the North Dakota Century Code, which governs sales tax exemptions. The bill applies only to taxable events occurring after June 30, 2025, so it would not affect earlier transactions. In practical terms, it reduces the sales tax burden on qualifying fire departments and fire districts when buying goods or services used in fire protection operations.
HB 1139 amends North Dakota’s sales tax exemption statute to add qualifying fire departments and fire districts as exempt purchasers for sales made to support fire protection services. This changes state tax law by narrowing the tax base for those transactions and providing direct financial relief to local fire protection entities that meet the bill’s definition. The exemption is limited to departments or districts with an approved certificate of existence, which ties eligibility to compliance with existing organizational requirements.
The bill appears to have been broadly supported overall, passing the House 49-38 and the Senate 47-0. The unanimous Senate vote suggests strong bipartisan or at least chamber-wide agreement on the policy, while the closer House vote indicates more divided views there. No committee transcripts were provided, so the available record shows support in both chambers but with some resistance in the House.
The main point of contention appears to have been whether fire departments should receive a targeted sales tax exemption and how broadly state tax exemptions should be extended. The House vote margin suggests some members may have been concerned about reducing tax revenue, creating a special exemption, or setting a precedent for other public or quasi-public entities. Supporters likely viewed the bill as a practical way to lower costs for fire protection providers and help local emergency services, while opponents in the House appear to have been less persuaded by that rationale.