ND SB2336

Exempts gross receipts from sales of machinery or equipment used to produce coal from new mines located in North Dakota from sales and use tax, capped at $5 million per new mine.

Allows exemption for replacement machinery or equipment if the capitalized investment in the new mine exceeds $20 million, but excludes repair or replacement parts for existing machinery or equipment.

Requires mine operators to apply to the commissioner for refunds of sales and use taxes paid on qualifying purchases, with applications made according to commissioner-directed procedures and requirements.

Defines "machinery or equipment" as equipment used directly to uncover, sever, crush, handle, or transport coal (including draglines, excavators, conveyor equipment, and reclamation equipment) but excludes rail spurs, office buildings, and workshops.

Effective for taxable events occurring after June 30, 2011, and applies only to mines permitted by the Public Service Commission after December 31, 2010.