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North Dakota sales tax exemptions facilitate disaster relief


 Sales tax exemptions are available for out-of-state businesses working on disaster relief in North Dakota.

When disaster strikes, it is in everyone’s best interest to facilitate recovery. To that end, a new law on the books in North Dakota provides a limited exemption from sales and use tax and other fees for out-of-state businesses providing disaster relief in North Dakota.

Under Senate Bill 2199, an out-of-state business that enters North Dakota to perform disaster or emergency remediation work on critical electrical, natural gas, and telecommunication transmission infrastructure is eligible for a limited exemption from sales and use taxes and fees, licensing, and certain other requirements. These tax benefits only apply during the period the business is employed in North Dakota for disaster or emergency remediation work.

Out-of-state businesses in North Dakota “for purposes of performing disaster or emergency remediation work or services during the disaster response period may not be considered to have established a business presence that would require that business or its out-of-state employees to be subject to any state and local taxes or fees.”

In addition, such businesses “may not be required to file or pay any state or local tax administered by a state agency … or to pay any sales and use tax on equipment used or brought into this state temporarily for use during the disaster response period if the equipment is removed from this state within a reasonable period of time after the disaster response period.”

Senate Bill 2199 provides additional details.

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Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.