NDAC 81-04.1-03-04
Sales in interstate commerce
Cite as N.D. Admin. Code ยง 81-04.1-03-04
When tangible personal property is sold by a North Dakota retailer for use or consumption and
delivered to the purchaser in another state and the goods are not to be returned to this state, the sale is
not subject to sales tax. However, where the seller actually delivers possession of the goods to the
buyer or the buyer's representative or agent within this state, the transaction is then terminated, and the
tax applies. If a shipping company takes possession of goods on behalf of a purchaser, the purchaser
has not taken possession of the goods.
Tangible personal property sold by a North Dakota retailer is not subject to sales tax if it is shipped
from the source of supply in another state to the purchaser at a point outside this state or delivered to
the purchaser at the source of supply outside the state. If the property is brought into this state, it is
subject to use tax.
Sales of tangible personal property made within this state by salesmen, representatives, agents,
persons, or firms residing outside this state and delivered in this state are subject to tax.