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600 E. Boulevard Ave.
  Bismarck, ND 58505-0599
  701.328.7088 phone
  701.328.3700 fax
  877.328.7088 toll-free
FOR IMMEDIATE RELEASE Contact: Rick Clayburgh, Tax Commissioner 701-328-2770
June 26, 2002 Gary Anderson, Director, Sales & Special Taxes, 701-328-3471

North Dakota First Quarter Total Taxable Sales and Purchases Dip Retail Sales Remain Strong

BISMARCK ---Tax Commissioner Rick Clayburgh reminded farmers, ranchers, and implement dealers that a sales tax exemption for used farm machinery and farm machinery repair parts goes into effect on July 1, 2002. 

“North Dakota’s agriculture producers need a break,” said Clayburgh. “It’s estimated that North Dakota’s farmers and ranchers will save about $2.43 million in sales taxes per year.”

State lawmakers set July 1, 2002 as the date the sales tax exemption goes into effect. The exemption includes state and local sales taxes on qualifying equipment or parts that are used exclusively for agricultural purposes and it applies to the sale, lease, or rental of used farm machinery, used farm machinery attachments, used farm irrigation equipment, and all farm machinery repair parts (except tires). 

“Minnesota has provided similar sales tax exemptions for some time and Montana does not have a sales tax,” said Clayburgh. “Now North Dakota farm and ranch suppliers and equipment dealers can compete with businesses located in neighboring states.”

The sales tax exemption is provided for “used” machinery that was subject to North Dakota sales tax on a previous sale, was originally purchased outside this state and previously owned by a farmer; or has been under lease or rental for three or more years.

New farm machinery, new attachments, and new irrigation equipment will continue to be taxed at the 1989 legislatively-reduced state sales tax rate of three percent plus any applicable local sales tax.

For more information regarding the farm machinery and repair parts sales tax exemption, visit the Office of State Tax Commissioner web site at www.nd.gov/tax or call 701-328-3470 (Bismarck and Mandan) or 1-800-638-2901.

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