North Dakota – Exemptions for Liquefied Natural Gas Sales and Facility Construction

SALT Report 2446 – The North Dakota legislature passed a Bill that exempts from sales and use tax the gross receipts from sales of tangible personal property used to construct or expand a processing facility that produces liquefied natural gas. The Bill also provides an exemption for liquefied natural gas sold or used for agricultural, industrial, or railroad purposes.

To receive the exemption, the owner of the processing facility must receive from the Commissioner, a certificate that indicates that the tangible personal property purchased to construct the processing facility qualifies for the exemption. The certificate must be received prior to purchase, if not; the purchaser will be required to first pay the sales tax and then apply for a refund.

Additionally, if the tangible personal property is purchased or installed by a contractor who is subject to tax, the owner can apply for a refund of the difference between the amount remitted by the contractor and the amount that qualifies for the exemption.

The exemption is effective after June 30, 2013.

For Further Information

North Dakota State Legislature – House Bill 1410, Laws 2013