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FAQ Articles

My business is located in a city or county with a local sales and use tax, but we sell and deliver goods to customers in other cities and counties with local taxes. Which city or county local tax applies to the sale?

Where the customer takes possession of the goods determines which local tax is collected. Customers, or their agents, who take possession of goods at the retailer’s business location pay the local tax due in the city and county where the retailer is located. If the retailer delivers goods to a customer who lives outside the city limits in a county that does not have a local tax, no local tax is due, whether the retailer delivers in the company’s vehicle or hires a third party shipper to make the delivery. If the retailer delivers goods to a customer who lives outside the city limits in a county that has a local use tax, the retailer does not collect the city tax but must collect the county use tax.

Retailers, who have sufficient physical presence in a city or county other than the city or county where the retail business is located, are required to collect the local tax of the location where the delivery is made. If the retailer does not have a physical presence at the point of delivery, the retailer is not required to collect the local tax, but the customer will be responsible to pay use tax on the cost of the goods purchased if the location has a local use tax ordinance.

The Local Option Taxes by Location guideline (PDF format) lists the cities and counties that have imposed local sales and use taxes. The guideline gives a brief summary of the local option taxes for each location.

nd.gov - The Official Portal for North Dakota State Government
North Dakota: Legendary. Follow the trail of legends

Ryan Rauschenberger
Tax Commissioner
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FAQ Articles

My business is located in a city or county with a local sales and use tax, but we sell and deliver goods to customers in other cities and counties with local taxes. Which city or county local tax applies to the sale?

Where the customer takes possession of the goods determines which local tax is collected. Customers, or their agents, who take possession of goods at the retailer’s business location pay the local tax due in the city and county where the retailer is located. If the retailer delivers goods to a customer who lives outside the city limits in a county that does not have a local tax, no local tax is due, whether the retailer delivers in the company’s vehicle or hires a third party shipper to make the delivery. If the retailer delivers goods to a customer who lives outside the city limits in a county that has a local use tax, the retailer does not collect the city tax but must collect the county use tax.

Retailers, who have sufficient physical presence in a city or county other than the city or county where the retail business is located, are required to collect the local tax of the location where the delivery is made. If the retailer does not have a physical presence at the point of delivery, the retailer is not required to collect the local tax, but the customer will be responsible to pay use tax on the cost of the goods purchased if the location has a local use tax ordinance.

The Local Option Taxes by Location guideline (PDF format) lists the cities and counties that have imposed local sales and use taxes. The guideline gives a brief summary of the local option taxes for each location.

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