State Sales Tax Nexus and General Overview

Need to Understand a State's Sales Tax Situation? Here it is...

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North-Dakota (ND)

ND Sales Tax - Name of Tax and General Application:

North Dakota imposes tax on retail sales of tangible personal property or specific services in the state. This tax is called a "sales tax". Additionally a tax is imposed on use, storage or consumption of tangible personal property whether purchased in the state or not. This tax is known as a "use tax" and is only imposed when no sales tax was collected.

ND Nexus - General Requirements:

The word "nexus" means a link or connection. If you are determined to have nexus to a U.S. state then you are subject to that state's sales and use tax rules and must collect and remit sales tax to the state. This is known as a "filing obligation."

Each state has a different definition of nexus. However, if the answer to any of the following questions is yes, it is likely that a company has nexus as legally defined in most U.S. States.

Does the company own property in the state? Does the company have employees living in the state? Does the company regularly send employees in the state to perform services? Does the company have an agent acting on behalf of the company in the state?

North Dakota imposes nexus when a retailer regularly or systematically solicits sales in the state in the form of advertising in catalogs, magazines, radio, television, mail, telephone, or other forms of media.

ND Local Tax - Do Localities Impose Tax?

Yes, North Dakota imposes local sales tax.

ND Resale Certificate Renewal Agreements:

Sales for resale are exempt when the buyer furnishes a resale certificate or other equivalent documentation approved in North Dakota.

ND Resale Certificate Renewal Periods

Certificates are valid until the Tax Department notifies the vendor with written notice of revocation or until the vendor becomes aware that the certificate is false or fraudulent.

ND Statute of Limitations

Later of three years from: the date the return was due or the date the return was filed. If the return understates the tax by 25% or more, the limitation period is six years from the later of: the date the return was due or the date the return was filed.