57-39.2-02.1. Sales tax imposed

57-39.2-02.1. Sales tax imposed

1. Except as otherwise expressly provided in this chapter, there is imposed a tax of five

percent upon the gross receipts of retailers from all sales at retail, including the leasing

or renting of tangible personal property as provided in this section, within this state of

the following to consumers or users:

a. Tangible personal property, consisting of goods, wares, or merchandise, and

bundled transactions consisting entirely of tangible personal property.

b. The furnishing or service of communication services, excluding internet access

service but including one-way and two-way telecommunications services or

steam other than steam used for processing agricultural products.

c. Tickets or admissions to places of amusement or entertainment or athletic events,

including amounts charged for participation in an amusement, entertainment, or

athletic activity.

d. Magazines and other periodicals.

e. The leasing or renting of a hotel or motel room or other accommodations.

f. The leasing or renting of tangible personal property the transfer of title to which

has not been subjected to a retail sales tax under this chapter or a use tax under

g. Sale, lease, or rental of a computer and prewritten computer software, including

prewritten computer software delivered electronically or by load and leave. For

purposes of this subdivision:

(1) "Computer" means an electronic device that accepts information in digital or

similar form and manipulates it for a result based on a sequence of

instructions.

(2) "Computer software" means a set of coded instructions designed to cause a

computer or automatic data processing equipment to perform a task.

(3) "Delivered electronically" means delivered from the seller to the purchaser

by means other than tangible storage media.

(4) "Electronic" means relating to technology having electrical, digital, magnetic,

wireless, optical, electromagnetic, or similar capabilities.

(5) "Load and leave" means delivery to the purchaser by use of a tangible

storage media when the tangible storage media is not physically transferred

to the purchaser.

(6) "Prewritten computer software" means computer software, including

prewritten upgrades, which is not designed and developed by the author or

other creator to the specifications of a specific purchaser. The combining of

two or more "prewritten computer software" programs or prewritten portions

thereof does not cause the combination to be other than "prewritten

computer software". "Prewritten computer software" includes software

designed and developed by the author or other creator to the specifications

of a specific purchaser when it is sold to a person other than the purchaser.

If a person modifies or enhances "computer software" of which the person is

not the author or creator, the person is deemed to be the author or creator

only of such person's modifications or enhancements. "Prewritten computer

software" or a prewritten portion thereof that is modified or enhanced to any

degree, if such modification or enhancement is designed and developed to

the specifications of a specific purchaser, remains "prewritten computer

software". However, if there is a reasonable, separately stated charge or an

invoice or other statement of the price given to the purchaser for such

modification or enhancement, such modification or enhancement shall not

constitute "prewritten computer software".

h. A mandatory computer software maintenance contract for prewritten computer

software.

i. An optional computer software maintenance contract for prewritten computer

software that provides only software upgrades or updates or an optional

computer software maintenance contract for prewritten computer software that is

a bundled transaction and provides software upgrades or updates and support

services.

2. For purposes of manufactured homes, as defined in section 41-09-02, there is

i. An optional computer software maintenance contract for prewritten computer

software that provides only software upgrades or updates or an optional

computer software maintenance contract for prewritten computer software that is

a bundled transaction and provides software upgrades or updates and support

services.

2. For purposes of manufactured homes, as defined in section 41-09-02, there is

imposed a tax of three percent upon the:

a. Gross receipts of retailers from all sales at retail of manufactured homes used for

residential or business purposes, except as provided in subsection 35 of section

57-39.2-04; or

b. Dealer's cost to purchase the manufactured home if the manufactured home is

sold in conjunction with installation in this state, and tax has not previously been

paid under subdivision a.

Installation of a manufactured home includes any method established under section

54-21.3-08.