HB 1419 Summary

• Amends North Dakota Century Code section 57-39.2-01 to clarify "retail sale" definition and sales tax application for tangible personal property incorporated into or attached to real property in another state.

• Property delivered within North Dakota by a wholesaler or distributor to an out-of-state retailer without a valid sales tax permit in any state is not taxable if the other state would not treat it as a taxable sale.

• Property delivered outside North Dakota by a North Dakota wholesaler or distributor to an out-of-state person incorporating property into or attaching it to real property in another state is not taxable if the other state would treat it as a taxable sale; such delivery concludes the sales transaction for tax purposes.

• Defines "processing" as tangible personal property intended to become an integral part, ingredient, or component of other property sold at retail, and clarifies that property incorporated into or attached to real property is not considered processing or resale.

• Effective for taxable events occurring after June 30, 2013.