# Title 81 — Tax Commissioner

## Article 81-04.1 — Sales and Use Taxes

## Chapter 81-04.1-02 — Sales to Government Entities

Municipal Corporations
### § 81-04.1-02-01. Sales to the state of North Dakota, any subdivisions of North Dakota, and

sales by municipal corporations.
Gross receipts from sales of tangible personal property or from furnishing taxable services to this
state or any of its political subdivisions, departments, agencies, or institutions are exempt from sales
tax.
Retail sales or furnishing of services to the public by any state, subdivisions, departments, or
institutions of any state, are subject to sales tax.
History: Effective June 1, 1984; amended effective August 1, 1994; July 1,1998.
General Authority: NDCC 57-39.2-19, 57-40.2-13; S.L. 1993, Ch. 561
Law Implemented: NDCC 57-39.2-01, 57-39.2-02.1, 57-39.2-03.2, 57-39.2-03.3, 57-39.2-04; S.L.
1993, ch. 561
### § 81-04.1-02-02. Contracts with governments.

A contractor performing contracts for the United States government, this state, counties, cities,
villages, or any other municipal corporation in this state is not exempt from payment of the sales or use
tax on materials and supplies used by the contractor to carry out the contracts.
History: Effective June 1, 1984.
General Authority: NDCC 57-39.2-19, 57-40.2-13
Law Implemented: NDCC 57-39.2-01, 57-39.2-02.1, 57-39.2-04, 57-39.2-10, 57-39.2-20,
### § 81-04.1-02-03. Tangible personal property purchases - United States government.

Except as provided by Congress, the United States government is not required to collect sales tax
when making a sale. However, the purchaser of taxable tangible personal property or services from the
United States government must report and remit the sales or use tax.
History: Effective June 1, 1984.
General Authority: NDCC 57-39.2-19, 57-40.2-13
Law Implemented: NDCC 57-39.2-01, 57-39.2-02.1, 57-39.2-03.2, 57-39.2-03.3, 57-39.2-04,
### § 81-04.1-02-04. Sales to federal corporations.

Federal statutes creating the following corporations contain provisions which have been construed
by the United States supreme court as exempt from sales or use tax.
1. Federal land banks.
2. Federal deposit insurance corporation.
3. Homeowners loan corporation.
4. Federal farm mortgage corporation.

5. Federal home loan banks.
6. Reconstruction-finance corporation.
7. American national red cross.
8. Federal credit unions.
History: Effective June 1, 1984.
General Authority: NDCC 57-39.2-19
Law Implemented: NDCC 57-39.2-01, 57-39.2-02.1, 57-39.2-04, 57-40.2-04
