Senate Bill 2172 Summary

• Reduces sales tax on coin-operated amusement and entertainment machines from 5 percent to 4 percent (80 percent of gross receipts are taxable) effective for taxable events after June 30, 2012.

• Amends the definition of "retail sale," "retailer," and "sale" in North Dakota Century Code to remove the phrase "including the playing of any machine for amusement or entertainment in response to the use of a coin" from general taxable activities.

• Creates a new exemption category in Section 57-39.2-04 for gross receipts from coin-operated amusement or entertainment machines.

• Applies to all coin-operated amusement and entertainment devices operated in North Dakota, providing a tax reduction from the standard 5 percent sales tax rate.

• Senate passed 37-10; House passed 86-5, with effective date of June 30, 2012.