Senate Bill 2202 Summary

• Amends sales and use tax exemptions for tangible personal property used to construct or expand gas compression, processing, gathering, or refining systems in North Dakota, requiring owners to obtain tax commissioner certificates before purchase to claim exemption at point of sale.

• Modifies the oil refinery tax exemption to apply to refineries with nameplate capacity of at least 5,000 barrels per day, requiring owners to obtain pre-purchase certificates from the tax commissioner to qualify for exemption.

• Allows owners to apply for refunds of sales and use taxes paid by contractors when property is purchased or installed by contractors, requiring submission of documentation to verify taxes paid and exempt status.

• Extends contractor use tax exemptions to include tangible personal property used to construct or expand gas-processing facilities and qualifying oil refineries, adding these to existing exemptions for production equipment and agricultural commodity processing facilities.

• Takes effect for taxable events occurring after June 30, 2011.