The imposition of motor vehicle excise tax and an exemption for motor vehicle excise tax paid or not assessed in other states; and to provide an effective date.
Impact
The amendments include provisions that allow tax exemptions for vehicles purchased outside of North Dakota if sales tax, use tax, or motor vehicle excise tax has already been paid in the other state. The new rules aim to avoid double taxation on vehicle purchases. If a vehicle is bought in a state that does not impose such taxes, it remains exempt from North Dakota's excise tax. This is designed to encourage vehicle purchases from other states by clarifying tax obligations for buyers.
Summary
House Bill 1484 seeks to amend the North Dakota Century Code regarding the motor vehicle excise tax. The bill proposes a five percent excise tax on motor vehicle purchases made within or outside the state, applicable to vehicles registered for use on state roads. For vehicles older than ten years, a flat tax of one hundred dollars will be imposed. This structure simplifies the tax calculation based on the age of the vehicle, aiming to make it more equitable for purchasers of older vehicles who might otherwise face higher relative tax rates under the previous rules.
Contention
One notable point of contention in the discussion around HB 1484 may arise regarding the reciprocity aspect of the tax exemptions. While supporters argue that this provision will stimulate sales in North Dakota and make vehicle ownership more affordable, critics may express concerns about the potential revenue loss for state funds allocated for transportation and infrastructure. Additionally, questions may be raised about the enforcement and verification process for purchasers proving their tax payments in other states, which could be perceived as cumbersome by both consumers and governmental agencies.
Allocations to townships from the township highway aid fund and an allocation of motor vehicle excise tax collections to the township highway aid fund and the county highway aid fund; and to provide an effective date.
The flexible transportation fund, motor vehicle excise tax allocations, an appropriation for township roadway funding, and the appropriation of bond proceeds for transportation projects; to provide an exemption; to provide a report; to provide for a legislative management study; to provide an effective date; and to declare an emergency.
The salary of the state tax commissioner, property assessment increase notices, and use tax exemptions; to provide an exemption; to provide for a transfer; to provide an effective date; and to provide an expiration date.
A transfer of Bank of North Dakota profits to a water infrastructure revolving loan fund; to provide for a transfer; to provide an exemption; to provide for a legislative management study; to provide a report; to provide a penalty; to provide for application; to provide a retroactive effective date; to provide a contingent effective date; to provide an effective date; and to declare an emergency.