North Dakota – Amended City Lodging Tax and Origin Sourcing Provisions

SALT Report 2314 – On March 20, 2013 the North Dakota Governor signed a Bill that amends certain regulations relating to the payment of city lodging tax, city lodging and restaurant tax, city motor vehicle tax, and the election of origin-based sourcing for retail sales of tangible personal property.

40-57.3-04. Payment of Tax

The city lodging tax provision has been amended to provide that this tax must be added to the sale, lease, or rental price and the tax must be collected from the consumer. Further, a retailer may not advertise or state to the public or a consumer, directly or indirectly, that the city lodging tax or any part of the tax will be assumed, absorbed, or refunded by the taxpayer.

Also, the Bill clarifies that the city lodging tax is not subject to the North Dakota Century Code Ch. 57-39.4, the Simplified Sales and Use Tax Administration Act.

57-39.4-11.1. Election for Origin-Based Sourcing

The provisions relating to the state’s eligibility for membership in the Streamlined Sales and Use Tax Agreement and the election for origin-based sourcing have been repealed. Further, the Bill clarifies that North Dakota sources sales on a destination basis.

The terms of the Bill are effective August 1, 2013.

For Further Information

North Dakota – State Legislature – Senate Bill 2217, Laws 2013