ND SB2034

Exempts sales and use taxes on tangible personal property used to construct or expand oil gathering pipeline systems in North Dakota, beginning after oil is measured from a well's storage tank into the gathering system.

Replacement of existing gathering systems qualifies for the exemption only if the replacement creates an expansion of the system or increases its capacity.

Excludes tank batteries, storage facilities on or off well sites, and metering equipment that measures oil moving from storage into the gathering system from the exemption.

Requires owners to obtain a tax commissioner certificate before purchase to claim the exemption; owners who purchase without a certificate must pay applicable taxes and apply for a refund.

Allows contractors to install qualifying materials with owners able to apply for refunds of taxes paid, with applications subject to tax commissioner verification requirements.

Expires May 30, 2017.