ND HB1413

Exempts gross receipts from sales of tangible personal property used to construct or expand facilities in North Dakota that extract or process coal gasification byproducts from sales tax, provided the property is incorporated into the facility structure or used in construction with no residual economic value.

Requires facility owners to obtain a certificate from the tax commissioner prior to purchase to claim the exemption at point of sale; owners who purchase without the certificate must pay tax and apply for a refund.

Allows facility owners to apply for refunds when contractors subject to use tax purchase or install exempt tangible personal property for the project.

Adds coal gasification byproduct facilities to the list of exemptions from contractor use tax, alongside existing exemptions for medical equipment, production equipment, agricultural processing facilities, gas processing systems, and oil refineries.

Effective for taxable events occurring after June 30, 2013; passed unanimously in both chambers (House 94-0, Senate 45-0 with 2 absent).