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Sales & Use Tax Exemption

North Dakota provides sales tax exemptions for equipment and materials used in manufacturing and other targeted industries. A new or expanding plant may be exempt from sales and use tax on purchases of machinery or equipment used for manufacturing, agricultural commodity processing or recycling.

Other exemptions available include:

  • Sales and use tax exemption for purchases of computer and telecommunications equipment that is part of a primary sector business or a physical or economic expansion of a primary sector business. The exemption does not extend to the purchase of replacement equipment.
  • Sales tax exemption for owners, operators, and tenants on the information technology equipment and computer software, including replacement equipment and software, of a qualified data center. (Limited to the first four qualified data centers approved by the Tax Commissioner.)
  • Construction materials used to construct an agricultural processing facility may be exempt from sales and use taxes.
  • Additional exemptions for all businesses include electricity, interstate communications over phone lines and natural gas. 
Applications for sales tax exemptions are made through the State Tax Commissioner. If the exemption is not approved prior to purchase, the manufacturer, recycler, agricultural commodity processor or other primary sector business must pay the tax and apply for a refund.

Learn more about sales and use tax exemptions from the Office of State Tax Commissioner.

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