North Dakota Code 57-39.2-04.21 – Sales and use tax exemption for materials used to construct or expand a coal processing facility that utilizes coal as a feedstock
1. Gross receipts from sales of tangible personal property used to construct or expand a coal processing facility that utilizes coal as a feedstock in this state are exempt from taxes under this chapter. To be exempt, the tangible personal property must be incorporated in the structure of the facility or used in the construction process to the point of having no residual economic value.
Terms Used In North Dakota Code 57-39.2-04.21
- Personal property: All property that is not real property.
- Personal property: includes money, goods, chattels, things in action, and evidences of debt. See North Dakota Code 1-01-49
- 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
- United States: includes the District of Columbia and the territories. See North Dakota Code 1-01-49
2. For purposes of this section:
a. “Coal processing facility that utilizes coal as a feedstock” means a facility that: (1) Extracts critical minerals or rare earth elements from lignite coal; or
(2) Creates tangible personal property other than electricity, water, gas, or steam from lignite coal, including lignite coal from which critical minerals or rare earth elements have been extracted.
b. “Critical mineral” means a nonfuel mineral or mineral material essential to the economic or national security of the United States and which has a supply chain vulnerable to disruption. The term includes aluminum, antimony, arsenic, barite, bauxite, beryllium, bismuth, cesium, chromium, cobalt, fluorspar, gallium, germanium, graphite, hafnium, helium, indium, lithium, magnesium, manganese, niobium, platinum group metals, potash, the rare earth elements group, rhenium, rubidium, scandium, strontium, tantalum, tellurium, tin, titanium, tungsten, uranium, vanadium, and zirconium.
c. “Rare earth elements” means any of a series of metallic elements of which the oxides are classed as rare earths and which include the elements of the lanthanide series, yttrium and scandium.
3. The owner of the facility must receive from the tax commissioner a certificate that the tangible personal property used to construct or expand a facility qualifying under this section which the owner intends to purchase qualifies for the exemption.