North Dakota Code 57-39.2-04.19 – Sales tax exemption for raw materials, single-use product contact systems, and reagents used for biologic manufacturing – Report
(Expired effective June 30, 2029) 1. Gross receipts from sales of raw materials, single-use product contact systems, and reagents used directly for discovery, testing, screening, and production for biologic manufacturing in this state are exempt from taxes under this chapter.
Terms Used In North Dakota Code 57-39.2-04.19
- Discovery: Lawyers' examination, before trial, of facts and documents in possession of the opponents to help the lawyers prepare for trial.
- Process: means a writ or summons issued in the course of judicial proceedings. See North Dakota Code 1-01-49
- Property: includes property, real and personal. See North Dakota Code 1-01-49
- State: when applied to the different parts of the United States, includes the District of Columbia and the territories. See North Dakota Code 1-01-49
- written: include "typewriting" and "typewritten" and "printing" and "printed" except in the case of signatures and when the words are used by way of contrast to typewriting and printing. See North Dakota Code 1-01-37
- year: means twelve consecutive months. See North Dakota Code 1-01-33
2. To receive the exemption at the time of purchase, the taxpayer must receive from the tax commissioner a certificate that the raw materials, single-use product contact systems, or reagents qualify for the exemption.
3. For purposes of this section:
a. “Biologic manufacturing” means the manufacturing process used to support biologic product discovery, development, generation, product impurity removal, chemical or physical product alteration, and analysis of in-process products to final deliverable products which occurs exclusively within this state.
b. “Single-use product contact systems” means tubing, capsule filters, ion exchange membrane chromatography devices, mixers, bioreactors, sterile fluid containment bags, connection devices, and sampling receptacles.
4. a. By April first of each year, each taxpayer that received the exemption under this section in the preceding calendar year shall file with the tax commissioner, on forms and in the manner prescribed by the tax commissioner, a report showing for the calendar year preceding the reporting deadline in this subdivision, the taxpayer’s:
(1) Total sales and use tax liability exempted under this section; (2) Total gross payroll; (3) Total property taxes paid and square footage of buildings owned by the taxpayer; (4) Total North Dakota workforce safety and insurance premiums paid; (5) North Dakota unemployment taxes paid; and
(6) Total state income tax withheld by the taxpayer.
b. Failure to file the report required under subdivision a is cause to disallow the exemption due to noncompliance. The tax commissioner shall provide notice of the disallowed exemption to the taxpayer and assess any sales and use tax due. An assessment of tax made under this subsection is final and irrevocably fixed.
c. By June first of each year, the tax commissioner shall submit to the legislative management a written report summarizing the information received under subdivision a, including a comparison of information received in the current calendar year with data received in the preceding calendar year.