North Dakota 2025-2026 Regular Session

North Dakota Senate Bill SB2369 Compare Versions

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1		-	Sixty-ninth Legislative Assembly of North Dakota
2		-	In Regular Session Commencing Tuesday, January 7, 2025
3		-	SENATE BILL NO. 2369
4		-	(Senator Cleary)
5		-	AN ACT to amend and reenact subsection 4 of section 57-39.2-04 of the North Dakota Century Code,
6		-	relating to exempt sales from educational, religious, or charitable activities conducted by a
7		-	nonprofit organization in a publicly or privately owned facility; and to provide an effective date.
	1	+	25.1357.03000
	2	+	Sixty-ninth
	3	+	Legislative Assembly
	4	+	of North Dakota
	5	+	Introduced by
	6	+	Senator Cleary
	7	+	A BILL for an Act to amend and reenact subsection 4 of section 57-39.2-04 of the North Dakota
	8	+	Century Code, relating to exempt sales from educational, religious, or charitable activities
	9	+	conducted by a nonprofit organization in a publicly or privately owned facility; and to provide an
	10	+	effective date.
8	11		BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
9		-	SECTION 1. AMENDMENT. Subsection 4 of section 57-39.2-04 of the North Dakota Century Code
10		-	is amended and reenacted as follows:
11		-	4.a.Gross receipts from sales of tickets, or admissions to state, county, district, and local
12		-	fairs.
13		-	b.Gross receipts from educational, religious, or charitable activities when the entire amount
14		-	of net receipts is expended for educational, religious, or charitable purposes. The
15		-	exemption in this subdivision does not apply to:
16		-	(1)Gross receipts from taxable sales in excess of ten thousand dollars for an event not
17		-	otherwise exempt under subdivision c, d, or e if the activities are held in a publicly
18		-	owned facility for which is not an event otherwise exempt under subdivision c, d, or
19		-	efair market rent has not been paid; or
20		-	(2)Gross receipts from activities if the seller competes with retailers by maintaining
21		-	inventory, conducting retail sales on a regular basis from a permanent or seasonal
22		-	location, or soliciting sales from a website prepared for or maintained by the seller.
23		-	c.Gross receipts derived by an institution of higher education located in this state from
24		-	tickets or admissions to athletic, musical, dramatic, or scholastic events held, sponsored,
25		-	hosted, or controlled by the institution of higher education, in which the primary
26		-	performers or participants consist of students of an institution of higher education.
27		-	d.Gross receipts derived by any public school district if such receipts are expended in
28		-	accordance with section 15.1-07-10 or 15.1-07-11.
29		-	e.Gross receipts of a nonprofit music or dramatic arts organization that is exempt from
30		-	federal income taxation and is organized and operated for the presentation of live public
31		-	performances of musical or theatrical works on a regular basis.
32		-	SECTION 2. EFFECTIVE DATE. This Act is effective for taxable events occurring after June 30,
33		-	2025. S. B. NO. 2369 - PAGE 2
34		-	____________________________ ____________________________
35		-	President of the Senate Speaker of the House
36		-	____________________________ ____________________________
37		-	Secretary of the Senate Chief Clerk of the House
38		-	This certifies that the within bill originated in the Senate of the Sixty-ninth Legislative Assembly of North
39		-	Dakota and is known on the records of that body as Senate Bill No. 2369.
40		-	Senate Vote:Yeas 47 Nays 0 Absent 0
41		-	House Vote: Yeas 67 Nays 26 Absent 1
42		-	____________________________
43		-	Secretary of the Senate
44		-	Received by the Governor at ________M. on _____________________________________, 2025.
45		-	Approved at ________M. on __________________________________________________, 2025.
46		-	____________________________
47		-	Governor
48		-	Filed in this office this ___________day of _______________________________________, 2025,
49		-	at ________ o’clock ________M.
50		-	____________________________
51		-	Secretary of State
	12	+	SECTION 1. AMENDMENT. Subsection 4 of section 57-39.2-04 of the North Dakota
	13	+	Century Code is amended and reenacted as follows:
	14	+	4.a.Gross receipts from sales of tickets, or admissions to state, county, district, and
	15	+	local fairs.
	16	+	b.Gross receipts from educational, religious, or charitable activities when the entire
	17	+	amount of net receipts is expended for educational, religious, or charitable
	18	+	purposes. The exemption in this subdivision does not apply to:
	19	+	(1)Gross receipts from taxable sales in excess of ten thousand dollars for an
	20	+	event not otherwise exempt under subdivision c, d, or e if the activities are
	21	+	held in a publicly owned facility for which is not an event otherwise exempt
	22	+	under subdivision c, d, or efair market rent has not been paid; or
	23	+	(2)Gross receipts from activities if the seller competes with retailers by
	24	+	maintaining inventory, conducting retail sales on a regular basis from a
	25	+	permanent or seasonal location, or soliciting sales from a website prepared
	26	+	for or maintained by the seller.
	27	+	c.Gross receipts derived by an institution of higher education located in this state
	28	+	from tickets or admissions to athletic, musical, dramatic, or scholastic events
	29	+	Page No. 1 25.1357.03000
	30	+	ENGROSSED SENATE BILL NO. 2369
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	55	+	held, sponsored, hosted, or controlled by the institution of higher education, in
	56	+	which the primary performers or participants consist of students of an institution
	57	+	of higher education.
	58	+	d.Gross receipts derived by any public school district if such receipts are expended
	59	+	in accordance with section 15.1-07-10 or 15.1-07-11.
	60	+	e.Gross receipts of a nonprofit music or dramatic arts organization that is exempt
	61	+	from federal income taxation and is organized and operated for the presentation
	62	+	of live public performances of musical or theatrical works on a regular basis.
	63	+	SECTION 2. EFFECTIVE DATE. This Act is effective for taxable events occurring after
	64	+	June 30, 2025.
	65	+	Page No. 2 25.1357.03000
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