25.1004.01000
Sixty-ninth
Legislative Assembly
of North Dakota
Introduced by
Representatives Hagert, Beltz
Senator Lemm
A BILL for an Act to amend and reenact sections 57-40.3-02 and 57-40.3-09 of the North
Dakota Century Code, relating to 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.
BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
SECTION 1. AMENDMENT. Section 57-40.3-02 of the North Dakota Century Code is
amended and reenacted as follows:
57-40.3-02. Tax imposed.
There is hereby imposed an excise tax at the rate of five percent on the purchase price of
anyon a motor vehicle purchased or acquired either in or outside of the state of North Dakota
for use on the streets and highways of this state and required to be registered under the laws of
this state as follows:
1.For a motor vehicle that is fewer than ten years old at the time the motor vehicle is
purchased or acquired, a tax is imposed at a rate of five percent on the purchase price
of the motor vehicle.
2.For a motor vehicle that is ten or more years old at the time the motor vehicle is
purchased or acquired, a tax is imposed in an amount equal to one - hundred dollars.
SECTION 2. AMENDMENT. Section 57-40.3-09 of the North Dakota Century Code is
amended and reenacted as follows:
57-40.3-09. CreditExemption for excise tax paid or not assessed in other states -
Reciprocity.
If any
1.A motor vehicle is exempt from the tax imposed under 57 - 40.3 - 02 if:
Page No. 1 25.1004.01000
HOUSE BILL NO. 1484
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23 Sixty-ninth
Legislative Assembly
a.Any sales tax, use tax, or motor vehicle excise tax has been paid on athe motor
vehicle in any other state, or political subdivision thereof, in respect to itsthe sale
or use in an amount less than the tax imposed by this chapter, the provisions of
this chapter apply, but in an amount equal to the difference between the tax
imposed by this chapter and the tax paid in the other state, or political subdivision
thereof. If the tax paid in the other state, or political subdivision thereof, is the
same or more, then no tax is due on the motor vehicle. The provisions of this
section apply only if the other state, or political subdivision thereof, allows a tax
credit with respect to the excise tax imposed by this chapter which is substantially
similar in effect to the credit allowed by this sectionof the motor vehicle.
b.The motor vehicle was purchased in a state that does not assess a tax on the
sale or use of a motor vehicle, including a sales tax, use tax, or motor vehicle
excise tax.
2.The tax commissioner may require the purchaser to provide written proof from the
other state, or political subdivision thereof, that the tax was legally due and paid.
3.For purposes of this section, "state" means a state, territory, or possession of the
United States, the District of Columbia, or the Commonwealth of Puerto Rico.
SECTION 3. EFFECTIVE DATE. This Act is effective for taxable events occurring after
June 30, 2025.
Page No. 2 25.1004.01000
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