Section 57-40.2-07 - Collection of use taxThe tax imposed by this chapter must be collected in the following manner:
1. Except as otherwise provided by section 57-39.2-14.1, every retailer maintaining a place of business in this state and making sales of tangible personal property for use in this state, not exempted under the provisions of section 57-40.2-04, before making any sales shall obtain a permit from the commissioner to collect the tax imposed by this chapter, which permit is subject to all of the requirements, conditions, and fees for its issuance that apply with respect to a retail sales tax permit, and at the time of making such sales, whether within or without the state, shall except as otherwise provided in subsection 1 of section 57-40.2-06, collect the tax imposed by this chapter from the purchaser, and give to the purchaser a receipt therefor in the manner and form prescribed by the commissioner, if the commissioner, by regulation, shall require such receipt. Each such retailer shall list with the commissioner the name and address of all of the retailer's agents operating in this state and the location of each of the retailer's distribution or sales houses or offices or other places of business in this state.2. The commissioner, upon application, may authorize the collection of the tax imposed by this chapter by any retailer not maintaining a place of business within the state, who, to the satisfaction of the commissioner, furnishes adequate security to ensure collections and payment of the tax. To such retailer must be issued a permit to collect the tax in such manner and subject to such regulations and agreements as the commissioner shall prescribe. When so authorized, such retailer shall, except as otherwise provided in subsection 1 of section 57-40.2-06, collect the tax upon all tangible property sold to the retailer's knowledge for use within this state, as a retailer maintaining a place of business within this state collects such tax. Such authority and permit may be canceled at any time, if the commissioner considers the security inadequate, or believes that such tax can be collected more effectively from the person using such property in this state.3. The tax required to be collected, and any tax collected, by any retailer under subsections 1 and 2 constitutes a debt owed by the retailer to this state.4. Except as provided in subsection 7, each retailer required or authorized, pursuant to this section, to collect such tax shall pay the tax in quarterly installments on or before the last day of the month next succeeding each quarterly period ending March thirty-first, June thirtieth, September thirtieth, and December thirty-first of each year. Except that when there is a sale of any business by any retailer required or authorized, pursuant to this section, to collect such tax or when any business is discontinued by such retailer, the tax becomes due immediately prior to the sale or discontinuance of such business and, if not paid within fifteen days thereafter, it becomes delinquent and subject to the penalties provided in section 57-40.2-15. Every retailer, at the time of making the return required by this chapter, shall compute and pay to the commissioner the tax due for the preceding period.5. Except as provided in subsection 7, the retailer, on or before the last day of the month following the close of the first quarterly period as defined in subsection 4, and on or before the last day of the month following each subsequent quarterly period of three months, shall make out a return for the preceding quarterly period in such form and manner as may be prescribed by the commissioner, showing the gross receipts of the retailer, the amount of the tax for the period covered by such return, and such further information as the commissioner may require to enable the commissioner correctly to compute and collect such tax, but the commissioner, upon receipt of a proper showing by any retailer of the necessity therefor, may grant such retailer an extension of time not to exceed thirty days for making such return. If such extension is granted to any retailer, the time in which the retailer is required to make payment must be extended for the same period. If the commissioner deems it necessary or advisable in order to ensure the payment of the tax, or if the commissioner deems it practical, the commissioner may require returns and payment of the tax to be made for annual periods or other than quarterly periods, the provisions of this chapter to the contrary notwithstanding. A return must be signed by the taxpayer or the taxpayer's duly authorized agent and must contain a written declaration that it is made and subscribed under penalties of this chapter.6. Except as provided in subsection 7, any person who uses any property upon which the said tax has not been paid, either to the retailer or directly to the commissioner, is liable therefor, and, on or before the last day of the month next succeeding each quarterly period, shall pay the tax upon all such property used by that person during the preceding quarterly period, in such manner and accompanied by such returns as the commissioner shall prescribe.7. If total sales and purchases subject to sales and use taxes for the preceding calendar year equal or exceed three hundred thirty-three thousand dollars, the tax levied by this chapter is payable monthly on or before the last day of the next succeeding month. The tax commissioner may, upon request and for good cause shown, waive the requirement to file and remit monthly. The amount of monthly tax payable, manner of payment, filing of the return, penalty, and waiver of penalty must be that prescribed in subsection 1 of section 57-39.2-12. Penalty and interest for failure to file a return or corrected return or to pay the tax imposed must be that prescribed in section 57-40.2-15. If a person is required to file more than one return pursuant to this section, the monthly payment requirement applies separately to each return. If total sales and purchases subject to sales and use taxes for any succeeding calendar year decrease below three hundred thirty-three thousand dollars, a person may return to quarterly installments. In the event of a business reorganization in which the ownership of the business organization remains in the same person or persons as prior to the reorganization, the total sales subject to sales and use taxes for the preceding calendar year for the business that was reorganized must be used to determine whether the tax is payable monthly under this section.8. The commissioner, when in the commissioner's judgment it is necessary and advisable to do so in order to secure the collection of such tax, may require any person subject to the tax to file with the commissioner a bond, issued by a surety company authorized to transact business in this state and approved by the insurance commissioner as to solvency and responsibility, in such amount as the commissioner may fix, to secure the payment of any tax or penalties due or which may become due from such person. In lieu of such bond, securities approved by the commissioner, in an amount which the commissioner may prescribe, may be deposited with the commissioner, and such securities must be kept in the custody of the commissioner, and may be sold by the commissioner at public or private sale, without notice to the depositor thereof, if it becomes necessary so to do in order to recover any tax or penalties due. Upon such sale, the surplus, if any remains above the amounts due, must be returned to the person who deposited the securities.9. The commissioner may adopt rules for adding such tax, or the average equivalent thereof, by providing different methods applying uniformly to retailers within the same general classification for the purpose of enabling such retailers to add and collect, as far as practicable, the amount of such tax.Amended by S.L. 2019, ch. 477 (SB 2089),§ 16, eff. 8/1/2019.Amended by S.L. 2011, ch. 72 (HB 1099),§ 5, eff. 7/1/2011.