Special Taxes

Medium

North Dakota has special taxes that extend beyond sales and use.

Medium
Motor Vehicle Excise Tax

The sales of licensed motor vehicles, including trailers and semi-trailers, are subject to a motor vehicle excise tax instead of state and local sales taxes. Vehicles required to be registered in North Dakota must pay a motor vehicle excise tax on the purchase price (sales price less any trade-in amount), or on the fair market value of the vehicle, if not acquired through a purchase. These taxes are remitted to the North Dakota Department of Transportation upon vehicle registration.

North Dakota allows credit for any excise tax paid on a motor vehicle in another state if that state allows a reciprocal credit. The motor vehicle excise tax is in addition to motor vehicle registration fees for license plates.

Tax Rate: 5% tax on vehicle purchase price or fair market value of vehicle

Distribution of Funds: State General Fund


Leased Vehicles: If a vehicle is leased for at least 1 year and weighs less than 10,000 lbs., the motor vehicle excise tax is 5% on the lease consideration. All other leased vehicles are taxed on the purchase price. For more information, see Guideline - Leased Vehicles.


Off-Road Vehicles: Snowmobiles and all-terrain vehicles (ATVs) that are used on land other than that owned or leased by the owner must be registered in North Dakota and must pay the motor vehicle excise tax at the time of registration. If the vehicle will not be registered it is subject to state and local sales tax at the time of purchase.

Snowmobile/Off-Highway Vehicle Sales Summary


Native American Purchases of Vehicles: The sales of a motor vehicle are not subject to motor vehicle excise tax when the:

  • Purchase is made by an enrolled tribal member
  • Purchase occurs on a North Dakota Indian reservation
  • Vehicle is delivered to the reservation on which the Native American is an enrolled member

No exception for motor vehicle excise tax is made for leased vehicles.

Music And Dramatico-Musical Composition Performing Rights Tax

Individuals who sell, license, or receive other compensation for performing rights of music they created for use in an opera, musical play, show or review (musical-dramatico) must pay a gross receipts tax. Most composers pay this tax to performance rights organizations, such as BMI and ASCAP, who remit the tax to North Dakota on their behalf.

Tax Rate: 5% tax of all sales

Distribution of Funds: State General Fund

Music & Copyright Tax Reports

Aircraft Excise Tax

Aircraft registered in North Dakota must pay an excise tax on the purchase price or market value of the aircraft to the Aeronautics Commissioner. The tax applies whether the aircraft is purchased in North Dakota or outside the state.

Leased Aircraft: If the aircraft is leased or rented, the tax may be imposed on the lease or rental cost of the aircraft.

Tax Rate: Purchased Aircraft – 5% of purchase price or fair market value of aircraft; Leased Aircraft: 5% of lease or rental cost of the aircraft; Agricultural Use Aircraft – 3% of purchase or rental price for aircraft designed exclusively for aerial applications of agricultural fertilizers, pesticides, and other agricultural materials.

Distribution of Funds: Aeronautics Commission special fund

Provider Assessment for Intermediate Care

Licensed treatment or care facilities that provide eligible medical assistance services for individuals with intellectual disabilities must pay a quarterly assessment based on each licensed bed in the facility.

Tax Rate: The assessment rate is calculated annually by the North Dakota Department of Human Services. The quarterly return and payment are due the last day of each quarter.

Distribution of Funds: Provider Assessment Fund