Free guide for contractors
Do contractors charge sales tax in North Dakota?
General information, not tax advice. Tax rules change and depend on the details of each job. Confirm how they apply to your business with your accountant or the state's revenue department before relying on them.
ND North Dakota
Usually no tax on the invoiceNo, for property installed into real estate. North Dakota contractors pay the tax when buying materials and may not itemize it.
North Dakota's Tax Commissioner says a contractor who incorporates tangible personal property into real property owes the sales or use tax when buying it.
That tax can be passed to the customer as a materials cost, but it cannot be itemized as a sales tax charge on the customer's invoice.
A contractor making retail sales may buy that property tax free, and must then charge sales tax on what it sells.
It turns on: whether property is installed into real estate or sold; for sand, rock and dirt, whether it is spread or only dumped.
Watch out for
- Sand, rock, dirt or scoria only dumped in a pile is a retail sale, taxed on the total including delivery; spread or placed, it counts as installation (ND Sales Tax: Contractor Guideline).
- The consumer rule applies to any contract except a labor-only contract (ND Sales Tax: Contractor Guideline).
“It cannot be itemized as a sales tax charge on the customer’s invoice.”ND Tax Commissioner, Tax responsibilities for contractors