North Dakota Code 57-39.4-33.4 – (335) Tax administration practices
1. For purposes of this section, tax administration practices consist of the following:
Terms Used In North Dakota Code 57-39.4-33.4
- 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
- Rule: includes regulation. 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
a. “Disclosed practice”, which means a tax practice that the governing board selects and requires each member state to disclose under subsection 2; and
b. “Best practice”, which means is a disclosed practice selected by the governing board as a best practice under subsection 3.
2. The governing board shall select a disclosed practice using the following procedures:
a. The state and local advisory council shall develop a practice for disclosure under the guidelines set forth in governing board rule 335.
b. The governing board shall provide public notice and opportunity for comment prior to voting on a motion to approve selection of a tax practice for disclosure.
c. If a disclosed practice and a best practice are under concurrent development under rule 335, the governing board first shall vote on whether the practice is a disclosed practice before proceeding on a vote on whether the practice should be selected as a best practice.
d. A majority vote of the entire governing board is required to approve a motion to select a tax practice for disclosure.
3. The governing board shall select a best practice using the following procedures:
a. The state and local advisory council shall develop a best practice under the guidelines set forth in governing board rule 335 only from among the disclosed practices or from tax practices in concurrent development under subsection 2.
b. The governing board shall provide notice and opportunity for public comment before voting on a motion to approve selection of a best practice.
c. A three-fourths vote of the entire governing board is required to approve a motion to select a best practice.
4. Tax administration practices must be maintained in an appendix to the agreement.
5. A state may not be found to be out of compliance with the agreement because the effect of the state’s laws, rules, regulations, and policies do not follow a tax administration practice. Following a tax administration practice is voluntary. All member states are encouraged to follow each best practice.
6. Each state shall complete and submit to the executive director for posting on the governing board’s website the tax administration practices section of the taxability matrix by the first day of the calendar month which is at least sixty days after the date the governing board approves a motion to select a disclosed or best practice, or both, or the date specified by the governing board, whichever is later.
7. Using the procedure for updating the taxability matrix, the executive director shall make the necessary updates to the taxability matrix template no later than thirty days after the date the governing board approves a motion to select a disclosed or best practice.
8. All best practices existing on May 11, 2015, are disclosed practices. The executive director shall implement this provision without changing any of the member states’ responses.
9. A disclosed practice may subsequently be modified or become a best practice by following the provisions set forth in this section.