ND HB1546

Contractors licensed under chapter 43-07 performing work for the State of North Dakota would be exempt from state sales and use tax on tangible personal property acquired for state contracts, provided they hold a valid sales tax permit and obtain purchasing agent authorization from the state.

The exemption applies only to materials that become part of real property improvements on state-owned property and does not extend to local sales or use taxes imposed by cities or counties under home rule authority.

Retailers who are also contractors may withdraw items from inventory tax-free for state contracts if they obtain the required authorization letter and exemption certificate before withdrawing the property.

Amends section 57-40.2-03.3 to add state-purchased tangible personal property installed by licensed contractors to the list of exemptions from contractor use tax.

Effective for taxable events occurring after June 30, 2025.