Chapter 21 – Sales and Use Tax

CHAPTER XXI

 

SALES AND USE TAX

 

21-101       Definitions

21-102       Sales Tax Imposed

21-103       Use Tax Imposed

21-104       Exemptions

21-105       Maximum Tax Imposed

21-106       Collection and Administration

21-107       City Auditor Empowered to Contract With State Tax Commissioner

21-108       Corporate Office Liability

21-109       Dedication of Tax Proceeds

21-110       Compensation

21-111       Effective Date

21-112       Saving Clause

21-113       City Lodging Tax

21-114       City Lodging and Restaurant Tax

21-115       Additional Sales Tax Imposed

21-116       Additional Sales Tax Imposed

 

CHAPTER XXI

 

SALES AND USE TAX

 

21-101. Definitions.  All terms defined in Chapters 57-39.2 and 57-04.2 NDCC, including any future amendments, are adopted by reference.  All references to the North Dakota Century Code include amendments adopted by the legislature of the State of North Dakota.

 

21-102. Sales Tax Imposed.  Except as otherwise provided in this chapter, a tax of one percent (1%) is imposed upon the gross receipts of retailers from all sales at retail including the leasing or renting of tangible personal property as provided in this section, within the corporate limit of the City of Lisbon, North Dakota.  Such sales tax shall parallel the State of North Dakota Sales and Use Tax law.  All of the exemptions applicable for state sales and use tax apply to the Lisbon sales and use tax, including exemptions for tax exempt entities (schools, counties, state agencies, etc.).  Such sales tax shall be applied to the following:

 

1. Tangible personal property, consisting of goods, wares, or merchandise.

 

2. The furnishing or service of gas, communications services, or steam other than steam used for processing agricultural products.

 

3. Tickets or admissions to places of amusement or entertainment or athletic events, including amounts charged for participation in an amusement, entertainment, or athletic activity, and including the furnishing of bingo cards and the playing of any machine for amusement or entertainment in response to the use of a coin.

 

4. The leasing or renting of a hotel or motel room or tourist court accommodations.

 

5. Magazines and other periodicals.

 

6. The leasing or renting of tangible personal property, the transfer of title to which has not been subject to tax under this chapter.

 

7. Sale of alcoholic beverages and tobacco products as defined in NDCC Section 57-39.2-03.2.

 

8. Furnishings and installment or attachment to real property in this state by a contractor or subcontractor who is a retailer of drapes, hardware for drapes, or carpet for floor covering.

 

21-103. Use Tax Imposed.  Except as otherwise provided in this chapter, an excise tax of one percent (1%) is imposed on the storage, use or consumption in the City of Lisbon on:

 

1. The purchase price of tangible personal property purchased at retail for storage, use or consumption within the city.

 

2. The fair market value, at the time it is brought into the city, of tangible personal property not originally purchased for storage, use or consumption in the city, at the time which it is brought into the City of Lisbon.

 

3. Alcoholic beverages and tobacco products as defined in NDCC Section 57-39.2-03.2.

 

4. Tangible personal property used by a contractor or subcontractor to fulfill a contract as defined in NDCC Section 57-40.2-03.3. The tax applies only to bids submitted on or after July 1, 1995.

 

21-104. Exemptions.

 

1. There are specifically exempted from the provisions of this chapter and from the computation of the amount of tax imposed by it the following:

 

1. All sales, storage, use or consumption of tangible personal property, which are exempt from imposition and computation of the sales or use tax of the State of North Dakota are specifically exempt from the provisions of this chapter.

 

2. Natural gas sales.

 

3. Farm machines.

 

4. Farm machine parts.

 

5. Farm irrigation equipment.

 

6. Sale to contractors that are exempt, pursuant to Subsection 15 of NDCC Section 57-39.2-04, shall be exempt from any City sales tax, but contractors shall be subject to the City use tax on those items used within the City that would be taxed, pursuant to NDCC Section 57-40.2-03.3, on which the City sales tax has not previously been paid.

 

1. Refunds allowed by the State of North Dakota for sales and use taxes paid are also allowed by this Ordinance under the same terms and conditions provided for in the North Dakota Century Code.

 

21-105. Maximum Tax Imposed.  No single transaction involving one or more items is subject to a tax in excess of twenty-five dollars ($25.00).

 

21-106. Collection and Administration.  The tax commissioner and the city auditor shall have the powers enumerated in the provisions of NDCC chapters 57-39.2 and 57-40.2 relating to the collections and administration of the state sales and use tax including all administrative rules adopted by the tax commissioner.  The tax commissioner is authorized to establish rate tables integrating the tax imposed by this ordinance with other state, county and city taxes.

 

21-107. City Auditor Empowered to Contract with State Tax Commissioner.  The city auditor is authorized to contract with the tax commissioner for the administration and collection of taxes imposed by this ordinance.  The city auditor has all the powers granted the commissioner and in the absence of a valid contract with the commissioner or failure of the commissioner to perform the delegated duties, shall perform those duties in the place of the commissioner.

 

21-108. Corporate Office Liability.  Officers of any corporation required to remit taxes imposed by this chapter are personally liable for the failure of the corporation to file required returns or remit required payments.

 

The dissolution of a corporation shall not discharge an officer’s liability for a prior failure of the corporation to make a return or remit the tax due.  The tax, penalty, and interest due may be assessed and collected pursuant to the provisions adopted by this ordinance.

 

21-109. Dedication of Tax Proceeds.  All revenues raised and collected under this ordinance, less administrative expenses, shall be dedicated to infrastructure improvements, economic development, and job development.  All revenues shall be placed in a separate sales and use tax fund.

 

21-110. Compensation.  City sales and use tax permit holders shall not be compensated for collecting and paying the sales tax.

 

21-111. Effective Date.  This ordinance shall be in full force and effect following its final passage, adoption, and publication.  The tax shall be implemented and take effect on July 1, 1995.

 

21-112. Saving Clause.  Should any section, paragraph, sentence, clause or phrase of this ordinance be declared unconstitutional or invalid for any reason, the remainder of this ordinance shall not be affected thereby. (Ordinance 1995-2)

 

21-113. City Lodging Tax.  There is imposed a tax in the amount of two percent upon the gross receipts of retailers on the leasing or renting of hotel, motel, or tourist court accommodations within the city for periods of less than thirty consecutive calendar days or one month.  The tax imposed by this ordinance shall be in addition to the state sales tax on rental accommodations and the city sales tax provided in Section 21-102.  All proceeds collected under this section must be deposited in the city visitors’ promotion fund and spent only as provided by Chapter 40-57.3 of the North Dakota Century Code.

 

This Ordinance shall not become effective until the 1^st day of January, 2006. (Ordinance No. 2005-1).

 

21-114. City Lodging and Restaurant Tax.  In addition to the City Lodging Tax, there is imposed a tax of one percent upon the gross receipts of retailers on the leasing or renting of hotel, motel, or tourist court accommodations within the city for periods of less than thirty consecutive calendar days or one month and upon the gross receipts of a restaurant from any sales of prepared food or beverages, not including alcoholic beverages for consumption off the premises where purchased, which are subject to state sales taxes.  For purposes of this section, “restaurant” means any place where food is prepared and intended for individual portion services for consumption on or off the premises and “prepared” includes heating prepackaged food.  Accommodations, food, and beverages may all, each, or in any combination be subject to the tax under this ordinance, if all items in any category which are taxable under state law are taxable, except as otherwise provided by Chapter 40-57.3 of the North Dakota Century Code.  The tax imposed under this ordinance is in addition to the state sales taxes on rental accommodations and restaurant sales and the city sales tax imposed in Section 21-102.  All proceeds must be deposited in the visitors’ promotion capital construction fund and spent only as provided in Chapter 40-57.3 of the North Dakota Century Code.

 

This Ordinance shall not become effective until the 1^st day of January, 2006. (Ordinance No. 2005-2).

 

21-115. Sales Tax Imposed.  Subject to the provisions of N.D.C.C. Section 40-05.1-06, and except as otherwise provided by this Ordinance, or the sales and use tax laws of the State of North Dakota, a tax of ½ percent is imposed upon the gross receipts of retailers from all sales at retail, including the leasing or renting of tangible personal property, within the corporate limits of the City of Lisbon, North Dakota.

 

5. Use Tax Imposed. Subject to the provisions of N.D.C.C. Section 40-05.1-06, and except as otherwise provided in this Ordinance, or the sales and use tax laws of the State of North Dakota, an excise tax is imposed upon the storage, use, or consumption within the corporate limits of the City of Lisbon, North Dakota, of tangible personal property purchased at retail for storage, use, or consumption in this city, at the rate of ½ percent of the purchase price of the property.  An excise tax is imposed on the storage, use, or consumption within the corporate limits of the City of Lisbon, North Dakota, of tangible personal property not originally purchased for storage, use, or consumption in this city at the rate of ½ percent of the fair market value of the property at the time it was brought into this city.

 

5. Gross Receipts of Alcoholic Beverages. Subject to the provisions of N.D.C.C. Section 40-05.1-06, and except as otherwise provided in this Ordinance, a gross receipts tax of ½ percent is imposed upon all gross receipts from the sale of alcoholic beverages within the city.  A person who receives alcoholic beverages for storage, use, or consumption in this state is subject to tax on storage, use, or consumption of those alcoholic beverages at the rate of ½ percent.

 

1. EXEMPTIONS. In addition to the exemptions provided by state law, this Ordinance provides exemptions from imposition and computation of the city sales or use tax for sale of:

 

1. All sales, storage, use, or consumption of tangible personal property, which are exempt from imposition and computation of the sales or use tax of the State of North Dakota are specifically exempt from the provisions of this chapter.

 

2. Natural gas sales.

 

3. Sales to contractors that are exempt pursuant to subsection 15 of N.D.C.C. Section 57-39.2-04 shall be exempt from any city sales tax, but contractors shall be subject to the city use tax on those items used within the city that would be taxed pursuant to N.D.C.C. Section 57-40.2-03.3 on which the city sales tax has not previously been paid.

 

12. Maximum Tax Imposed. Any patron or user paying a tax imposed by this Ordinance in excess of $12.50 upon any single transaction of one or more items may obtain a refund of the excess tax payment by filing a request for refund upon the forms provided by the Tax Commissioner.

 

1. Dedication of Tax Proceeds. All revenues raised and collected under this Ordinance, less administrative expenses, shall be dedicated to infrastructure improvements.  All revenues shall be placed in the separate sales and use tax fund.

 

1. Compensation. City sales and use tax permit holders shall not be compensated for collection and paying the sales tax.

 

2009. Effective Date. This Ordinance shall take effect after its passage, approval, and publication, but not prior to January 1, 2009.  (Ordinance No. 2008-1).

 

21.116. Sales Tax Imposed.  Subject to the provisions of N.D.C.C. Section 40-05.1-06, and except as otherwise provided by this Ordinance, or the sales and use tax laws of the State of North Dakota, a tax of ½ percent is imposed upon the gross receipts of retailers from all sales at retail including the leasing or renting of tangible personal property, within the corporate limits of the City of Lisbon, North Dakota.

 

5. Use Tax Imposed. Subject to the provisions of N.D.C.C. Section 40-05.1-06, and except as otherwise provided in this Ordinance, or the sales and use tax laws of the State of North Dakota, an excise tax is imposed upon the storage, use, or consumption within the corporate limits of the City of Lisbon, North Dakota, of tangible personal property purchased at retail for storage, use, or consumption this this city, at the rate of ½ percent of the purchase price of the property.  An excise tax is imposed on the storage, use, or consumption within the corporate limits of the City of Lisbon, North Dakota, of tangible personal property not originally purchased for storage, use, or consumption in this city at the rate of ½ percent of the fair market value of the property at the time it was brought into this city.

 

With respect to the purchase price of tangible personal property used by a contractor or subcontractor to fulfill a contract as defined in N.D.C.C. Section 57-40.2-03.3, the tax imposed by this section applies only to bids submitted on or after the effective date of this Ordinance.

 

5. Gross Receipts of Alcoholic Beverages. Subject to the provisions of N.D.C.C. Section 40-05.1-06, and except as otherwise provided in this Ordinance, a gross receipts tax of ½ percent is imposed upon all gross receipts from the sale of alcoholic beverages within the city.  A person who receives alcoholic beverages for storage, use, or consumption in this state is subject to tax on storage, use, or consumption of those alcoholic beverages at the rate of ½ percent.

 

1. EXEMPTIONS. In addition to the exemptions provided by state law, this Ordinance provides exemptions from imposition and computation of the city sales or use tax for sales of:

 

1. All sales, storage, use, or consumption of tangible personal property which are exempt from imposition and computation of the sales or use tax of the State of North Dakota are specifically exempt from the provisions of this chapter.

 

2. New farm machinery and new farm irrigation equipment.

 

3. Sales to contractors that are exempt pursuant to subsection 15 of N.D.C.C. Section 57-39.2-04 shall be exempt from any city sales tax, but contractors shall be subject to the city use tax on those items used within the city that would be taxed pursuant to N.D.C.C. Section 57-40.2-03.3 on which the city sales tax has not previously been paid.

 

12. Maximum Tax Imposed. Any patron or user paying a tax imposed by this Ordinance in excess of $12.50 upon any single transaction of one or more items may obtain a refund of the excess tax payment by filing a request for refund upon the forms provided by the Tax Commissioner.

 

1. Dedication of Tax Proceeds. All revenues raised and collected under this Ordinance, less administrative expenses, shall be dedicated to infrastructure improvements.  All revenues shall be placed in the separate sales and use tax fund.

 

1. Compensation. City sales and use tax permit holders shall not be compensated for collecting and paying the sales tax.

 

2010. Effective Date. The Ordinance shall take effect after its passage, approval, and publication, but not prior to April 1, 2010.  (Ordinance No. 2009-6).