57-39.5-02. Imposition - Transfer of funds - Exemptions

57-39.5-02. Imposition - Transfer of funds - Exemptions There is imposed a tax of three percent upon the gross receipts of retailers from all sales at retail, including the leasing or renting, of farm machinery or irrigation equipment used exclusively for agricultural purposes. After July first of each year, five hundred thousand dollars of taxes collected under this chapter must be transferred to the state treasurer who shall deposit the moneys in the agricultural research fund. Gross receipts from sales at retail of farm machinery or irrigation equipment are exempted from the tax imposed by this chapter when the sale, lease, or rental is made to a purchaser or lessor who is entitled to a sales and use tax exemption under subsection 6 or 12 of section 57-39.2-04 on otherwise taxable sales at retail. There are specifically exempted from the tax imposed by this chapter the gross receipts from the sale, lease, or rental of used farm machinery, farm machinery repair parts, used irrigation equipment, or irrigation equipment repair parts used exclusively for agricultural purposes. For purposes of this section, "used" means: 1. Tax under this chapter or chapter 57-39.2 or 57-40.2 has been paid on a previous sale; 2. Tax under section 57-39.5-06 has been paid under a previous lease; 3. Originally purchased outside this state and previously owned by a farmer; or 4. Has been under rental for three years or more.