ND HB1424

Creates a sales and use tax exemption for contractors licensed under North Dakota law who purchase tangible personal property for use in contracts with exempt entities, provided the contractor holds a valid sales tax permit and obtains a purchasing agent authorization letter and exemption certificate from the exempt entity.

Applies the exemption to contractors who are also retailers withdrawing property from inventory for use in exempt entity contracts, subject to the same documentation requirements.

Limits the exemption to tangible personal property that becomes part of real property improvements where the exempt entity owns both the real property and the improvements.

Defines "exempt entity" as an organization issued a sales and use tax exemption certificate by the tax commissioner for its own purchases, excluding new or expanding businesses with project-specific exemptions.

Effective for taxable events occurring after June 30, 2019, and amends the contractor use tax statute to incorporate this new exemption as an exception to the general use tax requirement.