North Dakota Code 57-39.4-10 – (309) Application of general sourcing rules and exclusions from the rules
1. Each member state shall agree to require sellers to source the retail sale of a product in accordance with section 57-39.4-11 or 57-39.4-11.1. Except as provided in section 57-39.4-11.1, the provisions of section 57-39.4-11 apply to all sales regardless of the characterization of a product as tangible personal property, a digital good, or a service.
Terms Used In North Dakota Code 57-39.4-10
- following: when used by way of reference to a chapter or other part of a statute means the next preceding or next following chapter or other part. See North Dakota Code 1-01-49
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- 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
Except as otherwise provided in the agreement, the provisions of sections 57-39.4-11 and 57-39.4-11.1 only apply to determine a seller’s obligation to pay or collect and remit a sales or use tax with respect to the seller’s retail sale of a product. These provisions do not affect the obligation of a purchaser or lessee to remit tax on the use of the product to the taxing jurisdictions of that use.
2. Sections 57-39.4-11 and 57-39.4-11.1 do not apply to sales or use taxes levied on the following:
a. The retail sale or transfer of watercraft, modular homes, manufactured homes, or mobile homes. These items must be sourced according to the requirements of each member state.
b. The retail sale, excluding lease or rental, of motor vehicles, trailers, semitrailers, or aircraft that do not qualify as transportation equipment, as defined in subsection 4 of section 57-39.4-11. The retail sale of these items shall be sourced according to the requirements of each member state, and the lease or rental of these items must be sourced according to subsection 3 of section 57-39.4-11.
c. Telecommunications services and ancillary services, as set out in section 57-39.4-16, and internet access service shall be sourced in accordance with section 57-39.4-15.
d. Florist sales as defined by each member state. These sales must be sourced according to the requirements of each member state.
e. The retail sale of products and services qualifying as direct mail must be sourced in accordance with section 57-39.4-14.