Compensation for sales or use tax permit holders is applied as follows:

1. A sales and use tax permit holder registered to report and remit sales, use, or gross receipts tax under North Dakota Century Code chapter 57-39.2, 57-39.5, 57-39.6, or 57-40.2 may deduct and retain one and one-half percent of the tax due, but this deduction may not exceed one hundred ten dollars per return.

2. A sales and use tax permit holder that is a remote seller, or a certified service provider assigned by the qualifying permit holder, is allowed to deduct and retain up to one and one-half percent of the tax due or such lower percentage as agreed in the compensation or monetary allowance agreement approved by the streamlined sales and use tax governing board. For purposes of this subsection, "remote seller" means a retailer that does not have adequate physical presence to establish nexus in this state for sales tax purposes.

Qualified sales or use tax permit holders, including permit holders and certified service providers who pay tax due under chapter 57-39.4, who fail to file the forms on time, or fail to pay the tax due on time, forfeit the one and one-half percent compensation for expenses.

History: Effective June 1, 1984; amended effective July 1, 1985; November 1, 1987; April 1, 2006; July 1, 2016.

General Authority: NDCC 57-39.2-19

Law Implemented: NDCC 57-39.2-12.1, 57-40.2-07.1