N.D. Admin. Code 81-04.1-04-17
When financial institutions are engaged in the business of purchasing tangible personal property for lease or rental at retail, they are required to collect and remit the tax from their customers on all periodic lease or rental payments unless the financial institution paid sales or use tax on the purchase price of the property at the time of purchase.
To qualify for the exemption on periodic lease or rental payments, the financial institution leasing or renting the tangible personal property must disclose on an invoice, contract, or lease agreement, or other supporting sales document provided to the customer that the financial institution paid sales or use tax on its purchase price. Financial institutions are required to collect sales tax on a payment made to exercise a purchase option.
When financial institutions acquire tangible personal property to offer as an inducement to deposit funds, sales tax applies on the full purchase price. If the seller fails to collect the sales tax, the financial institution must report the purchase of such merchandise and pay use tax. If such merchandise is subsequently sold at a reduced price to depositors, no sales tax applies.
N.D. Admin Code 81-04.1-04-17
General Authority: NDCC 57-39.2-19
Law Implemented: NDCC 57-39.2-01, 57-39.2-02.1, 57-39.2-20, 57-40.3