# Title 57 — Taxation

## Chapter 57-40.3 — Motor Vehicle Excise Tax

### § 57-40.3-01. Definitions.

As used in this chapter, except when the context clearly indicates a different meaning:
1. "Low-speed vehicle" means a four-wheeled vehicle that is able to attain a speed, upon
a paved surface, of more than twenty miles per hour [32 kilometers per hour] in one
mile [1.6 kilometers] and not more than twenty-five miles per hour [40 kilometers per
hour] in one mile [1.6 kilometers] and may not exceed three thousand pounds
[1360.77 kilograms] in weight when fully loaded with passengers and any cargo.
2. "Motor vehicle" includes every vehicle that is self-propelled and every vehicle that is
propelled by electric power obtained from overhead trolley wires, but not operated
upon rails, every trailer, semitrailer, park model trailer as defined in subsection 2 of
section 57-55-10, off-highway vehicle, snowmobile, low-speed vehicle, and travel
trailer for which a certificate of title is required to be obtained under chapter 39-05, but
not including housetrailers or mobile homes. The term does not include an electric
bicycle.
3. "Off-highway vehicle" means off-highway vehicle as defined in section 39-29-01.
4. "Person" includes any individual, firm, partnership, joint venture, association,
corporation, limited liability company, estate, business trust, receiver, or any other
group or combination acting as a unit and the plural as well as the singular number.
5. "Purchase price" means the total amount paid for the motor vehicle whether received
in money or otherwise. The purchase price excludes the amount of a manufacturer's
incentive or discount that reduces the amount paid by the purchaser to the seller at the
time of purchase and any charges or fees for auction services. If a motor vehicle or
other tangible personal property that will be subject to a sales or use tax imposed by
chapter 57-39.2 or 57-40.2 when sold or used is taken in trade as a credit or as part
payment on a motor vehicle taxable under this chapter, the credit or trade-in value
allowed by the person selling the motor vehicle shall be deducted from the total selling
price to establish the purchase price of the vehicle being sold and the trade-in
allowance allowed by the seller on a motor vehicle accepted as a trade-in shall
constitute the purchase price of a motor vehicle accepted as a trade-in. If a motor
vehicle is purchased by an owner who has had a motor vehicle stolen or totally
destroyed, a credit or trade-in credit shall be allowed against one or more replacement
motor vehicle purchases in a cumulative amount not to exceed the total amount the
purchaser has been compensated by an insurance company for the loss plus the
amount of the purchaser's deductible at the time of the loss. For a leased vehicle that
is stolen or totally destroyed, the credit may not exceed the total amount of motor
vehicle excise tax paid. The purchaser must provide the director of the department of
transportation with a notarized statement from the insurance company within three
years from the date of issuance verifying the fact that the original vehicle was a total
loss and stating the amount compensated by the insurance company for the loss and
the amount of the purchaser's deductible at the time of the loss. The statement from
the insurance company must accompany the purchaser's application for a certificate of
title for the replacement vehicle. If the full amount of the credit under this subsection
has not been used, the director of the department of transportation shall record on the
face of the notarized statement the necessary information to identify the partial use of
the credit and shall retain a copy and return the original to the purchaser. In instances
in which a licensed motor vehicle dealer places into the dealer's service a new vehicle
for the purpose of renting, leasing, or dealership utility service, the reasonable value of
the vehicle replaced shall be included as trade-in value provided the vehicle replaced
has been subject to motor vehicle excise tax under section 57-40.3-02 and if the new
vehicle is properly registered and licensed. "Purchase price" when the motor vehicle is
acquired by gift or by any other transfer for a nominal or no monetary consideration
also includes the average value of similar motor vehicles, established by standards
and guides as determined by the director of the department of transportation.

"Purchase price" when a motor vehicle is manufactured by a person who registers it
under the laws of this state means the manufactured cost of such motor vehicle and
manufactured cost means the amount expended for materials, labor, and other
properly allocable costs of manufacture except that, in the absence of actual
expenditures for the manufacture of a part or all of the motor vehicle, manufactured
cost means the reasonable value of the completed motor vehicle.
6. "Purchaser" means any person owning or in possession of a motor vehicle who makes
application to the director of the department of transportation for registration plates or
a certificate of title for such vehicle.
7. "Registrar" means the director of the department of transportation of this state as
provided by section 24-02-01.3, and who shall act as the agent of the state tax
commissioner in administering this chapter.
8. "Sale", "sells", "selling", "purchase", "purchased", or "acquired" includes any transfer of
title or ownership of a motor vehicle by way of gift, exchange or barter, or by any other
manner or by any other means whatsoever for or without consideration.
9. "Semitrailer" includes every vehicle of the trailer type so designed and used in
conjunction with a motor vehicle that some part of its own weight and that of its own
load rests upon or is carried by another motor vehicle and for which a certificate of title
is required to be obtained pursuant to the provisions of chapter 39-05, except that it
does not include a "housetrailer" or "mobile home".
10. "Snowmobile" means a self-propelled vehicle designed for travel on snow, ice, or a
natural terrain and steered by skis or runners.
11. "Trailer" includes every vehicle without motive power designed to carry property or
passengers wholly on its own structure and to be drawn by a motor vehicle and for
which a certificate of title is required to be obtained pursuant to the provisions of
chapter 39-05, except that it does not include a "housetrailer" or "mobile home".
12. "Travel trailer" means a mobile home or housetrailer designed to be towed behind a
motor vehicle for recreational purposes and providing temporary sleeping quarters for
people.
13. "Use" means the exercise by any person of any right or power over a motor vehicle
incident to the ownership or possession of such a vehicle, except that it shall not
include the sale or holding for sale of such a vehicle in the regular course of business.
14. "Vehicle" includes every device in, upon, or by which any person or property may be
transported or drawn upon a public highway, except devices moved by human power
or animal power or used exclusively upon stationary rails or tracks.
### § 57-40.3-02. Tax imposed.

There is hereby imposed an excise tax at the rate of five percent on the purchase price of
any motor vehicle purchased or acquired either in or outside of the state of North Dakota for use
on the streets and highways of this state and required to be registered under the laws of this
state.
### § 57-40.3-02.1. Tax imposed on motor vehicle lease.

1. With respect to any lease for a term of one year or more of a motor vehicle with an
actual vehicle weight of ten thousand pounds [4535.92 kilograms] or less, all receipts
due or consideration given or contracted to be given at the initiation of the lease and
for the entire period of the lease, option to renew, or similar provision, or combination
thereof, are deemed to have been paid or given and are subject to tax. Any tax due
must be collected as provided in section 57-40.3-12 as of the date of first payment
under the lease, option to renew, or similar provision, or combination thereof, or as of
the date of registration under chapter 39-05. Lease consideration, when all or part of
the lease is a gift or other agreement for nominal value, also includes the average
value of similar motor vehicle leases established by standards and guides as
determined by the director of the department of transportation.
2. With respect to any lease for a term of one year or more of a motor vehicle with an
actual vehicle weight of ten thousand pounds [4535.92 kilograms] or less, originally

leased outside this state and subsequently entering this state for use, any remaining
receipts due or consideration to be given after the lessee brings the motor vehicle into
this state are subject to tax as if the lessee had entered or exercised the lease, option
to renew, or similar provision, or combination thereof, for the first time in this state,
notwithstanding section 57-40.3-09.
### § 57-40.3-03. Separate and additional tax imposed.

Repealed by S.L. 1983, ch. 645, § 5.
### § 57-40.3-03.1. Separate and additional tax imposed.

Repealed by I.M. approved November 2, 1976, S.L. 1977, ch. 593, § 6.
### § 57-40.3-04. Exemptions.

There are specifically exempted from the provisions of this chapter and from computation of
the amount of tax imposed by it the following:
1. Any motor vehicle acquired by, or leased and in the possession of, a resident disabled
veteran under the provisions of Pub. L. 79-663 [38 U.S.C. 3901], a resident disabled
veteran who has a one hundred percent service-connected disability as determined by
the department of veterans' affairs, or a resident disabled veteran who has an
extra-schedular rating to include individual unemployability which results in the veteran
being paid at the one hundred percent rate as determined by the department of
veterans' affairs who registers, or is eligible to register, the vehicle with a distinctive
license plate issued by the department of transportation under subdivision j of
subsection 2 of section 39-04-18. A surviving spouse who is receiving United States
department of veterans affairs dependency and indemnity compensation is eligible for
the exemption in this subsection. If the determination of disability or service-connected
death occurs subsequent to the qualifying veteran's death through application of a law
that renders a surviving spouse of a qualifying veteran eligible for United States
department of veterans affairs disability and indemnity compensation, the
determination for purposes of the exemption under this subsection is presumed to
precede the veteran's death. Sufficient proof of receipt of United States department of
veterans affairs dependency and indemnity compensation includes correspondence
directed to a surviving spouse of a qualifying veteran by the United States department
of veterans affairs which indicates the surviving spouse is a survivor of the qualifying
veteran and is in receipt of United States department of veterans affairs dependency
and indemnity compensation.
2. a. Any motor vehicle procured by, owned, or in possession of:
(1) The federal government;
(2) The state government;
(3) A political subdivision of this state;
(4) A tribal government of a federally recognized Indian tribe within the
boundaries of any reservation in this state; or
(5) A person on behalf of the North Dakota lottery when the motor vehicle is to
be awarded as a prize in a game or promotion.
b. For purposes of this subsection, an "Indian tribe" means a tribal government
agency, instrumentality, or political subdivision that performs essential
government functions. The term does not include a business entity or agency with
the primary purpose of operating a business enterprise.
3. Motor carrier vehicles in excess of twenty thousand pounds [9071.85 kilograms] gross
weight, whether owned or leased, engaged in interstate commerce but only to the
extent their fleet miles outside North Dakota bear to their total fleet miles. For the
purposes of this subsection, "fleet miles" means those miles reported in accordance
with the international registration plan and must coincide with the mileage reporting
period required by the plan. For the purposes of this subsection, "motor carrier
vehicles" means any vehicles used upon public streets or highways for the purpose of

transporting persons or property for commercial purposes. To claim this exemption, the
motor carrier's vehicles must be both titled and registered in this state.
4. Any motor vehicle transferred without consideration to or from a person within thirty
days prior to that person entering into the armed services of the United States or within
thirty days after discharge therefrom or while serving in the armed services of the
United States; provided the person certifies to the director of the department of
transportation that the transfer is made only by reason of entering into, serving in, or
being discharged from the armed services of the United States.
5. a. A motor vehicle acquired by inheritance from, by bequest of, or operation of a
trust created by a decedent who owned it;
b. The transfer of a motor vehicle that was previously titled or licensed in the name
of an individual or in the names of two or more joint tenants and subsequently
transferred without monetary consideration to one or more joint tenants, including
a transfer into a trust in which one or more of the joint tenants is beneficiary or
trustee;
c. The transfer of a motor vehicle by way of gift between a husband and wife, parent
and child, grandparent and grandchild, or brothers and sisters, including a
transfer into a trust in which the trustor and beneficiary occupy one of these
relationships;
d. The transfer of a motor vehicle without monetary consideration into a trust in
which the beneficiary is the person in whose name the motor vehicle was
previously titled or licensed;
e. The transfer of a motor vehicle to reflect a new name of the owner caused by a
business reorganization in which the ownership of the reorganized business
remains in the same person or persons as before the reorganization, if the title
transfer is completed within one hundred eighty days from the effective date of
the reorganization;
f. The transfer of a motor vehicle previously transferred under subdivision e which
returns ownership to the previous owner; and
g. The transfer of a motor vehicle without monetary consideration from a revocable
living trust to the trustor or to the spouse, child, or sibling of the trustor.
6. Motor vehicles transferred between a lessee and lessor; provided, that the lessee has
been in continuous possession of such vehicle for a period of one year or longer, and
further provided that the lessor has paid either the tax imposed under section
imposed by chapter 57-40.2.
7. Any motor vehicle in the possession of and used exclusively by a nonprofit senior
citizens' or handicapped persons' corporation for transportation of the elderly or
disabled; provided, that the motor vehicle may not be used for commercial activities.
8. Any motor vehicle that does not exceed ten thousand pounds [4535.92 kilograms]
gross weight and which is acquired by, or leased and in the possession of, a
permanently physically disabled, licensed driver who is restricted to operating only
motor vehicles equipped with special controls to compensate for the disability, or by
permanently physically disabled individuals who have either surrendered or who have
been denied a driver's license because of a permanent physical disability, provided the
individuals obtain from the director of the department of transportation or the director's
authorized representative a statement that the individual has a restricted driver's
license or has either surrendered or has not been issued a driver's license because of
a permanent physical disability; a copy of the statement must be attached to the
application for registration of the title to the motor vehicle for which the exemption from
tax under this chapter is claimed. If the applicant does not have the statement at the
time of application for registration of the title, motor vehicle excise tax is due and must
be paid. However, if the applicant provides the statement to the director of the
department of transportation, the applicant may apply for a refund of the taxes paid in
the manner provided in chapter 57-40.4. Any motor vehicle acquired subject to this
exemption must be disposed of either by transfer to another permanently physically

disabled person or by a trade-in on another exempt sale or by a transfer involving a
sale subject to sales or use tax before another motor vehicle can be acquired subject
to the benefits of this exemption clause.
9. Any motor vehicle registered under chapter 39-04 for the first time by a person other
than a manufacturer of motor vehicles, as defined in section 39-01-01, who assembled
the motor vehicle for that person's own use.
10. Motor vehicles acquired by, or leased and in the possession of, any parochial or
private nonprofit school to be used for the transportation of students; provided, that to
qualify a school must normally maintain a regular faculty and curriculum and must
have a regularly organized body of students in attendance, and provided that the
vehicles are not to be used for commercial activities.
11. Any motor vehicle with a gross vehicle weight of at least a class six, seven, or eight
chassis, purchased for installation or assembly of heavy duty equipment by a person
engaged in the business of installing or assembling the equipment, which when
completed forms an integral part of a vehicle, has limited marketability, and is not
normally sold to the general public. This exemption applies only when the
manufacturer's statement of origin is reassigned to the installer or assembler by a
licensed new motor vehicle dealer on a form prescribed by the tax commissioner. The
motor vehicle and installed equipment must be sold as a unit when completed. "Heavy
duty equipment" includes fuel delivery tanks, refuse bodies, cranes, aerial bucket
devices, bus bodies regardless of gross vehicle weight, and digger derricks.
12. Motor vehicles acquired through purchase or gift by any nonprofit county and local
historical societies that are exempt from federal income taxation under section 501(c)
(3) of the United States Internal Revenue Code [26 U.S.C. 501(c)(3)].
13. Any motor vehicle acquired by, or leased and in the possession of, a resident who was
a prisoner of war and who registers the vehicle with a distinctive license plate issued
by the department of transportation under subdivision o of subsection 2 of section
### § 39-04-18. The owner or lessor of the motor vehicle who qualifies for the exemption

under this subsection is entitled to a refund of taxes paid under this chapter on
acquisition or leasing of the vehicle if the distinctive license plate was acquired not
more than sixty days after acquisition or leasing of the vehicle.
14. Any motor vehicle acquired by a charitable organization to be awarded as a prize in a
raffle conducted in accordance with law if upon registration the motor vehicle will be
subject to taxes under this chapter or the motor vehicle is registered in another state.
15. A motor vehicle acquired at any location within this state by an individual who is an
enrolled member of a federally recognized Indian tribe residing within the boundaries
of any reservation in this state, provided the exemption in this subsection does not
apply to a motor vehicle purchased by an individual whose primary residence is not
within the boundaries of any reservation in this state.
16. A motor vehicle originally manufactured for use as an ambulance, when purchased by
the operator of an emergency medical services operation licensed under chapter
23-27.
17. Motor vehicles registered in another state or territory, if the motor vehicle is registered
in this state under section 39-04-18.2.
18. A motor vehicle donated to a qualified nonprofit organization that is exempt from
federal taxation under Internal Revenue Code section 501(c)(3) [26 U.S.C. 501(c)(3)] if
that organization is organized or incorporated in this state, has its certificate of
incorporation or certificate of authority in good standing with the secretary of state, and
has an established program with the primary purpose of receiving donations of motor
vehicles that it then donates to individuals with demonstrated need of a motor vehicle
necessary to the individual's effort to become a self-sufficient member of the
workforce.
a. An exemption under this subsection is rescinded if the organization has not
transferred title to a donated motor vehicle and donated that motor vehicle to an
individual with demonstrated need of a motor vehicle necessary to the individual's
effort to become a self-sufficient member of the workforce within ninety days after

taking possession or ownership of the motor vehicle, in which case the
organization shall pay the tax based on the retail value of the motor vehicle, as
determined by the national automobile dealers association official used car guide,
at the time it took possession or ownership.
b. An exemption under this subsection is rescinded if the organization sells a
donated motor vehicle for more than five hundred dollars after taking possession
or ownership of the motor vehicle, in which case the organization shall pay the
tax based on the retail value of the motor vehicle, as determined by the national
automobile dealers association official used car guide, at the time it took
possession or ownership.
c. The commissioner shall issue a certificate of exemption to a qualified nonprofit
organization exempted by this subsection. The qualified nonprofit organization
shall present the certificate of exemption to the registrar whenever the exemption
under this subsection is claimed.
19. Any damaged motor vehicle transferred to an insurance company in the settlement of
an insurance claim.
20. Any motor vehicle in the possession of and used exclusively by a public transportation
provider that receives a distribution of funds under section 39-04.2-04 to provide public
transportation services.
21. Any motor vehicle transferred from an individual to a former spouse of the individual if
the transfer is the result of a divorce decree. A transfer of a motor vehicle is the result
of a divorce if the transfer occurs within one year after the date the divorce became
final.
22. Any motor vehicle transferred under subsection 2 of section 23.1-15-07.
### § 57-40.3-05. Purchaser to furnish motor vehicle purchaser's certificate to director of

the department of transportation.
Any person purchasing a motor vehicle and any person acquiring a motor vehicle by way of
gift from a husband or wife, parent or child, or from a brother or sister shall complete a motor
vehicle purchaser's certificate in such form and manner as may be prescribed by the director of
the department of transportation, showing a complete description of the motor vehicle, the
seller's name and address, the buyer's name and address, the full purchase price of the vehicle,
trade-in allowance and description of the trade-in, if any, whether the vehicle was the subject of
a gift, and any other information that the director of the department of transportation may
require.
### § 57-40.3-05.1. Seller to furnish motor vehicle seller's certificate to purchaser.

Repealed by S.L. 1997, ch. 497, § 4.
### § 57-40.3-06. Presentation of motor vehicle purchaser's certificate to director.

No title or license registration may be issued by the director of the department of
transportation for a motor vehicle purchased or acquired by way of gift from a husband or wife,
parent or child, or from a brother or sister unless and until the applicant therefor attaches a
properly executed motor vehicle purchaser's certificate to the application for title or license
registration. If a license application is made for a motor vehicle that has been previously
licensed in this state and the applicant for license is the same person in whose name the license
registration had previously been issued, the motor vehicle purchaser's certificate need not be
submitted to the director.
### § 57-40.3-07. Title or license registration not to be issued unless tax paid.

No title or license registration shall be issued by the director of the department of
transportation for the ownership or operation of any motor vehicle to any applicant for title or
license registration unless the tax imposed by this chapter shall be paid by the applicant to the
director of the department of transportation except:

1. For those vehicles which have been previously licensed and the applicant for license
registration is the same person in whose name the license registration had previously
been issued.
2. For those vehicles transferred by way of gift between a husband and wife, parent and
child, or brothers and sisters.
3. For those vehicles which have been previously licensed and the applicant for license
registration is the same business organization to which the license registration had
been issued but the name of which has been changed through incorporation or other
reorganization in business structure but the ownership of which remains in the same
person or persons as prior to the reorganization.
4. For vehicles which have been previously licensed and are transferred between a
member of a general or limited partnership and the partnership at the time the
partnership is established or terminated, between a stockholder of a corporation and
the corporation at the time the corporation is organized or liquidated, or between a
member of a limited liability company and the limited liability company at the time the
limited liability company is organized or terminated.
5. For a vehicle leased and registered or licensed in another state by a nonresident
individual who is stationed as a member of the armed services of the United States in
this state, the vehicle is exempt from tax imposed under this chapter and registration in
this state must be issued upon application and payment of appropriate registration
fees.
### § 57-40.3-07.1. Lien for failure to pay tax.

1. Whenever any taxpayer liable to pay a tax or penalty imposed refuses or neglects to
pay it, the amount, including any interest, penalty, or addition to such tax, together with
the costs that may accrue, is a lien in favor of the state upon all property and rights to
property, whether real or personal, belonging to the taxpayer. In the case of property in
which a deceased taxpayer held an interest as joint tenant or otherwise with right of
survivorship at the time of death, the lien continues as a lien against the property of
the survivor or survivors to the extent of the deceased taxpayer's interest therein,
which interest must be determined by dividing the value of the entire property at the
time of the taxpayer's death by the number of joint tenants or persons interested
therein. The lien attaches at the time the tax becomes due and payable and continues
until the liability for such amount is satisfied.
2. Any mortgagee, purchaser, judgment creditor, or lien claimant acquiring any interest in,
or lien on, any property situated in the state, prior to the commissioner filing in the
central indexing system maintained by the secretary of state, a notice of the lien
provided for in this section, takes free of, or has priority over, the lien.
3. The commissioner shall index in the central indexing system the following data:
a. The name of the taxpayer.
b. The name "State of North Dakota" as claimant.
c. The date and time the notice of lien was indexed.
d. The amount of the lien.
e. The internal revenue service taxpayer identification number or social security
number of the taxpayer.
The notice of lien is effective as of eight a.m. next following the indexing of the notice.
Any notice of lien filed by the commissioner may be indexed in the central indexing
system without changing its original priority as to property in the county where the lien
was filed. The commissioner is exempt from the payment of fees otherwise provided
by law for the indexing or the satisfaction of the lien.
4. Upon payment of the tax relative to which the commissioner has indexed notice in the
central indexing system, the commissioner shall index a satisfaction of the lien in the
central indexing system.
5. The attorney general, upon the request of the tax commissioner, shall bring an action
at law or in equity without bond to enforce payment of any taxes and any penalties, or
to foreclose the lien in the manner provided for mortgages on real or personal property,

and in such action shall have the assistance of the state's attorney of the county in
which the action is pending. The foregoing remedies of the state are cumulative and
no action taken by the tax commissioner or attorney general may be construed to be
an election on the part of the state or any of its officers to pursue any remedy
hereunder to the exclusion of any other remedy provided by law.
### § 57-40.3-08. Presumption.

For the purpose of the proper administration of this chapter and to prevent evasion of the
tax, the following presumptions apply:
1. Evidence that a motor vehicle was sold for delivery in this state is prima facie evidence
that it was sold for use in this state.
2. When an application for registration plates or for a certificate of title for a motor vehicle
is received by the director of the department of transportation within thirty days of the
date it was purchased or acquired by the purchaser, it must be presumed, until the
contrary is shown by the purchaser, that it was purchased or acquired for use on the
streets and highways of this state. This presumption applies whether or not such
vehicle was previously titled or registered in another state.
### § 57-40.3-09. Credit for excise tax paid in other states - Reciprocity.

If any sales tax, use tax, or motor vehicle excise tax has been paid on a motor vehicle in
any other state, or political subdivision thereof, in respect to its sale or use in an amount less
than the tax imposed by this chapter, the provisions of this chapter apply, but in an amount
equal to the difference between the tax imposed by this chapter and the tax paid in the other
state, or political subdivision thereof. If the tax paid in the other state, or political subdivision
thereof, is the same or more, then no tax is due on the motor vehicle. The provisions of this
section apply only if the other state, or political subdivision thereof, allows a tax credit with
respect to the excise tax imposed by this chapter which is substantially similar in effect to the
credit allowed by this section. The tax commissioner may require the purchaser to provide
written proof from the other state, or political subdivision thereof, that the tax was legally due
and paid. For purposes of this section, "state" means a state, territory, or possession of the
United States, the District of Columbia, or the Commonwealth of Puerto Rico.
### § 57-40.3-10. Transfer of revenue.

After the deposits under sections 57-39.2-26.1, 57-39.2-26.2, and 57-39.2-26.3, moneys
collected and received under this chapter must be deposited monthly in the state treasury and
allocated as follows:
1. Fifty percent to the general fund;
2. Twenty-five percent to the highway tax distribution fund; and
3. Twenty-five percent to the flexible transportation fund.
### § 57-40.3-11. Penalties.

1. Any person who violates any of the provisions of this chapter is guilty of a class B
misdemeanor.
2. Any person who submits a false or fraudulent motor vehicle purchaser's certificate, or
who fails to submit the certificate, is subject to a penalty of five percent of the true
amount of the tax which was due or five dollars, whichever is greater, plus one percent
of such tax for each month or fraction thereof subsequent to the month in which the
motor vehicle purchaser's certificate was due or the false or fraudulent motor vehicle
purchaser's certificate was furnished to the director of the department of
transportation. Such penalty must be paid to either the tax commissioner or the
director of the department of transportation and disposed of pursuant to the provisions
of section 57-40.3-10. The tax commissioner, if satisfied that the failure to submit or
the delay was excusable, may waive, and if paid, refund all or any part of such penalty
and interest. Unpaid penalties may be enforced in the same manner as the tax
imposed by this chapter.

3. Whenever a person, including any motor vehicle dealer, has collected from a person
acquiring a motor vehicle, a motor vehicle excise tax in excess of the amount
prescribed or due under this chapter, and if the person does not refund the excessive
tax collected to the person who remitted it, the person who collected the tax shall pay it
to the tax commissioner in the quarterly period in which the excessive collection
occurred. The penalty and interest provisions of this section apply beginning at the
termination of each reporting period.
4. If upon audit the tax commissioner determines that a motor vehicle excise tax has not
been paid or an additional tax is due, the tax commissioner shall give notice of
determination of the tax due to the person liable for the tax. The notice of
determination must be given no later than three years from the date the motor vehicle
was purchased, acquired, or the date the vehicle was required to be titled or registered
with the director of the department of transportation, whichever is later. If it is
determined that the motor vehicle excise tax due is twenty-five percent or more above
the amount that had been paid, the notice of determination must be given no later than
six years from the date the motor vehicle was purchased, acquired, or the date the
vehicle was required to be titled or registered with the director of the department of
transportation, whichever is later. The notice of determination of tax due fixes the tax
finally and irrevocably unless within thirty days of the date of the notice the person
against whom the tax is assessed applies to the tax commissioner for a hearing under
chapter 28-32 or unless the tax commissioner reduces the liability relating to
assessments on the tax commissioner's own motion. The provisions of chapter
57-39.2 not in conflict with the provisions of this chapter govern the administration of
the tax levied in this chapter.
### § 57-40.3-12. Director to act as agent of tax commissioner in administration of motor

vehicle use tax.
The state tax commissioner is charged with the administration of this chapter. The tax
commissioner may prescribe all rules and regulations, not inconsistent with the provisions of this
chapter, necessary and advisable for the proper and efficient administration of this chapter. The
collection of this motor vehicle excise tax must be carried out by the director of the department
of transportation who shall act as the agent of the state tax commissioner and who is subject to
all rules and regulations, not inconsistent with the provisions of this chapter, that may be
prescribed by the tax commissioner. The provisions of this chapter may not be construed as
preventing the collection of motor vehicle excise taxes by the tax commissioner when additional
motor vehicle excise taxes are determined by the tax commissioner to be due for a lease, option
to renew, or similar provision, or combination thereof, as provided under section 57-40.3-02.1
and in the course of any audit carried on by the tax commissioner. The director of the
department of transportation shall furnish sufficient information to the tax commissioner, relating
to all license or title applications for mobile homes or housetrailers purchased outside of the
state of North Dakota for use in this state, to enable the tax commissioner to collect use tax on
such mobile homes or housetrailers.
