North Dakota

1. If your State exempts fundraising sales by certain groups from sales or use taxes, please indicate which of the following are exempt in your State.

   Public Schools (K-12) - exempt

   Private Schools (K-12) - exempt

   School Groups (e.g., clubs, bands, teams) - exempt

   PTAs - exempt

   PTOs - exempt

   Church Groups - exempt

   Youth Sports League - exempt

   501 (c)(3) organizations - exempt

   501 (c)(6) organizations  - exempt

   1a Are local sales and use taxes in your State applied to these groups in the same manner as State sales and use taxes are applied to these groups?

   Yes

   1b Please set forth any comments including a list of groups not listed above whose fundraising activities are exempt from sales and use taxation in your State.

 

2. If your State exempts fundraising sales of certain products from sales and use tax, please indicate which of the following products are exempt.

   Candies and Confections  - exempt

   Cookies and Other Baked Goods - exempt

   Cheese Products - exempt

   Meat Products - exempt

   Nuts, popcorn and other snack food - exempt

   Other edible items (please identify) - exempt

   Paper products (e.g., calendars, cards - exempt

   stationery, books, gift wrap)  - exempt

   Decorative tins, baskets, other containers - exempt

   Decorative novelties (mugs, ornaments) - exempt

   Clothing and accessories - exempt

   Jewelry - exempt

   Plant and seeds - exempt

   Other hard good items - exempt

   2a Are local sales and use taxes in your State applied to these products in the same manner as State sales and use taxes are applied to these products?

   Yes

   2b Please set forth any comments including a list of products not listed above that are exempt from sales and use taxation for fundraising purposes in your State.

 

3. If some or all fundraising groups or products qualify for exemption from sales and use tax in your State, please indicate any exceptions to or limitations on such exemptions. (Check all that apply and specify the limitation.)

1. The sale does not take place in a publicly owned facility or sales made in a publicly owned facility if the gross receipts from the event are $5,000 or less. (If the gross receipts from an event held in a publicly owned facility are greater than $5,000, the total gross receipts remain subject to sales tax.)
2. The net receipts are used for a specific eduational, religious or charitable purpose.
3. The sales are not regular ongoing sales made in direct competition with retailers.

4. If some or all fundraising groups qualify for exemption from sales and use tax in your State, please set forth the procedure through which a group may establish its qualification for the exemption. Attach relevant statutes, regulations, procedures, etc.

   The group should send a letter to the sales tax compliance section describing its fund raising activities and stating how the net proceeds will be used. If the activities qualify as tax exempt, our office will respond with a letter that the group may give to its supplier in place of a resale certificate.

 

5. If some or all fundraising products qualify for exemption from sales and use tax in your State, please set forth the procedure for establishing a product's qualification for the exemption. Attach relevant statutes, regulations, procedures, etc.

 

6. In instances where a fundraising product or group is not exempt from sales or use tax, please indicate who bears the responsibility for collecting and remitting the tax.

   The company distributing goods to the fundraising group, unless completed certificate of resale provided.

 

7. In instances where a fundraising product or group is not exempt from sales or use tax, what is the basis for calculating the sales/use tax?

   Price paid by fundraising group to distributor

 

8. Provide any additional information regarding the sales and use tax treatment of fundraising transactions and/or groups in your State. Also set forth any statements, disclosures, disclaimers, etc.,to be provided as part of the clearinghouse regarding your state's practices and procedures. Attach additional sheets if necessary.

Last Updated: September 2005