57-40.2-01. Definitions

57-40.2-01. Definitions

In this chapter, unless the context and subject matter otherwise require:

1. "Business", "certified automated system", "certified service provider", "commissioner",

"computer software contract", "farm machinery", "gross receipts", "lease or rental",

"local governmental unit", "mandatory computer software maintenance contract",

"optional computer software maintenance contract", "person", "relief agency", "retail

sale", "sale", and "tangible personal property", each has the meaning given to it in

section 57-39.2-01.

2. Property used in "processing", as that term is used in subsection 9, means any

tangible personal property including containers which it is intended, by means of

fabrication, compounding, manufacturing, producing, or germination, shall become an

integral or an ingredient or component part of other tangible personal property

intended to be sold ultimately at retail. The purchase of an item of tangible personal

property for the purpose of incorporating it in or attaching it to real property must be

considered as a purchase of tangible personal property for a purpose other than for

processing.

3. "Purchase" means any transfer of title or possession, exchange, or barter, conditional

or otherwise, in any manner or by any means whatsoever, for a consideration.

"Purchase" also means the severing of sand or gravel from the soil of this state.

4. "Purchase price" applies to the measure subject to use tax and has the same meaning

as gross receipts as defined in section 57-39.2-01.

5. "Purchased at retail" includes:

a. The completion of the fabricating, compounding, or manufacturing of tangible

personal property by a person for storage, use, or consumption by that person.

b. The furnishing of wares, merchandise, and gas, when furnished or delivered to

consumers or users within this state, and the sale of vulcanizing, recapping, and

retreading services for tires.

c. The leasing or renting of tangible personal property, the sale, storage, use, or

consumption of which has not been previously subjected to a retail sales or use

tax in this state.

d. The purchase of magazines or other periodicals. Provided, the words "magazines

and other periodicals" as used in this subdivision do not include newspapers nor

magazines or periodicals that are furnished free by a nonprofit corporation or

organization to its members or because of payment by its members of

membership fees or dues.

e. The severance of sand or gravel from the soil.

f. The purchase, including the leasing or renting, of tangible personal property from

any bank for storage, use, or consumption.

g. The purchase of an item of tangible personal property by a purchaser who rents

or leases it to a person under a finance leasing agreement over the term of which

the property will be substantially consumed, if the purchaser elects to treat it as

being purchased at retail by paying or causing the transferor to pay the use tax to

the commissioner on or before the last day on which payments may be made

without penalty as provided in section 57-40.2-07.

6. "Retailer" includes every person engaged in the business of selling tangible personal

property for use within the meaning of this chapter, but, when in the opinion of the

commissioner, it is necessary for the efficient administration of this chapter to regard

any salesman, representative, trucker, peddler, or canvasser as the agent of the

dealer, distributor, supervisor, employer, or other person under whom that person

operates or from whom that person obtains the tangible personal property sold by that

person, whether that person is making sales in that person's own behalf or in behalf of

such dealer, distributor, supervisor, employer, or other person, the commissioner may

regard that person as such agent, and may regard the dealer, distributor, supervisor,

employer, or other person as a retailer for the purposes of this chapter.

hat person obtains the tangible personal property sold by that

person, whether that person is making sales in that person's own behalf or in behalf of

such dealer, distributor, supervisor, employer, or other person, the commissioner may

regard that person as such agent, and may regard the dealer, distributor, supervisor,

employer, or other person as a retailer for the purposes of this chapter.

7. "Retailer maintaining a place of business in this state", or any like term, means any

retailer having or maintaining within this state, directly or by a subsidiary, an office,

distribution house, sales house, warehouse, or other place of business, or any agent

operating within this state under the authority of the retailer or its subsidiary, whether

such place of business or agent is located in the state permanently or temporarily, or

whether or not such retailer or subsidiary is authorized to do business within this state.

8. "Use" means the exercise by any person of any right or power over tangible personal

property incident to the ownership or possession of that property, including the

storage, use, or consumption of that property in this state, except that it does not

include processing, or the sale of that property in the regular course of business. "Use"

also means the severing of sand or gravel from the soil of this state for use within or

outside this state.

9. "Use tax" means the tax levied under section 57-40.2-02.1 or imposed under home

rule authority by a city or county.