North Dakota HB 1046: A BILL for an Act to amend and reenact sections 57‑39.2‑04.9 and 57‑40.2‑03.3 of the North Dakota Century Code, relating to a sales and use tax exemption for equipment used in telecommunications infrastructure development; and to provide an effective date.

Bill Text

17.0293.01000
Sixty-fifth
Legislative Assembly
of North Dakota
Introduced by
Legislative Management
(Political Subdivision Taxation Committee)
A BILL for an Act to amend and reenact sections 57-39.2-04.9 and 57-40.2-03.3 of the North
Dakota Century Code, relating to a sales and use tax exemption for equipment used in
telecommunications infrastructure development; and to provide an effective date.
BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
SECTION 1. AMENDMENT. Section 57-39.2-04.9 of the North Dakota Century Code is
amended and reenacted as follows:
57-39.2-04.9. (Effective through June 30, 2017) Sales tax exemption for equipment
used in telecommunications infrastructure development.
1. Gross receipts from sales of tangible personal property used to construct or expand
telecommunications service infrastructure that is capable of providing
telecommunications service in this state are exempt from taxes under this chapter. To
be exempt, the tangible personal property must be incorporated into
telecommunications infrastructure owned by a telecommunications company.
2. To receive the exemption at the time of purchase, the purchaser must receive from the
tax commissioner a certificate stating that the tangible personal property qualifies for
the exemption. If a certificate is not received before the purchase, then the
telecommunications company shall pay the applicable tax imposed and apply to the
tax commissioner for a refund of sales and use taxes paid for which the exemption is
claimed under this section. If the tangible personal property is purchased or installed
by a contractor subject to the tax imposed by this chapter, the telecommunications
company may apply for a refund of the difference between the amount remitted by the
contractor and the exemption imposed or allowed under this section. Application for a
refund must be made at the times and in the manner directed by the tax commissioner
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HOUSE BILL NO. 1046

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and must include sufficient information to permit the tax commissioner to verify the
sales and use taxes paid and the exempt status of the sale or use.
SECTION 2. AMENDMENT. Section 57-40.2-03.3 of the North Dakota Century Code is
amended and reenacted as follows:
57-40.2-03.3. (Effective through June 30, 2017) Use tax on contractors.
1. When a contractor or subcontractor uses tangible personal property in the
performance of that person's contract, or to fulfill contract or subcontract obligations,
whether the title to such property be in the contractor, subcontractor, contractee,
subcontractee, or any other person, or whether the titleholder of such property would
be subject to pay the sales or use tax, such contractor or subcontractor shall pay a
use tax at the rate prescribed by section 57-40.2-02.1 measured by the purchase price
or fair market value of such property, whichever is greater, unless such property has
been previously subjected to a sales tax or use tax by this state, and the tax due
thereon has been paid.
2. The provisions of this chapter pertaining to the administration of the tax imposed by
section 57-40.2-02.1, not in conflict with the provisions of this section, govern the
administration of the tax levied by this section.
3. The tax imposed by this section does not apply to medical equipment purchased as
tangible personal property by a hospital or by a long-term care facility as defined in
section 50-10.1-01 and subsequently installed by a contractor into such hospital or
facility.
4. The tax imposed by this section does not apply to:
a. Production equipment or tangible personal property as authorized or approved
for exemption by the tax commissioner under section 57-39.2-04.2;
b. Machinery, equipment, or other tangible personal property used to construct an
agricultural commodity processing facility as authorized or approved for
exemption by the tax commissioner under section 57-39.2-04.3 or 57-39.2-04.4;
c. Tangible personal property used to construct or expand a system used to
compress, process, gather, or refine gas recovered from an oil or gas well in this
state or used to expand or build a gas-processing facility in this state as
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authorized or approved for exemption by the tax commissioner under section
57-39.2-04.5;
d. Tangible personal property used to construct or expand a qualifying oil refinery as
authorized or approved for exemption by the tax commissioner under section
57-39.2-04.6;
e. Tangible personal property used to construct or expand a qualifying facility as
authorized or approved for exemption by the tax commissioner under section
57-39.2-04.10;
f. Tangible personal property used to construct or expand a qualifying facility as
authorized or approved for exemption by the tax commissioner und