ND SB2165

Amends North Dakota Century Code section 57-39.2-01 to add a new provision excluding insurance compensation for stolen or totally destroyed watercraft from gross receipts when used as a trade-in on replacement watercraft purchases.

Allows trade-in credit for watercraft insurance compensation to be applied against one or more replacement watercraft purchases in a cumulative amount not exceeding the total insurance compensation received.

Requires purchasers to provide sellers with an original notarized statement from the insurance company verifying the watercraft was a total loss and indicating the date and amount of compensation.

Permits sellers to track partial use of the trade-in credit by recording information on the notarized statement, retaining a copy for verification, and returning the original to the purchaser.

Limits the three-year window for applying trade-in credit from the date of insurance company compensation, with sellers required to retain original notarized statements for verification purposes.