57-40.3-02.1. Tax imposed on motor vehicle lease

57-40.3-02.1. Tax imposed on motor vehicle lease

1. With respect to any lease for a term of one year or more of a motor vehicle with an

actual vehicle weight of ten thousand pounds [4535.92 kilograms] or less, all receipts

due or consideration given or contracted to be given at the initiation of the lease and

for the entire period of the lease, option to renew, or similar provision, or combination

thereof, are deemed to have been paid or given and are subject to tax. Any tax due

must be collected as provided in section 57-40.3-12 as of the date of first payment

under the lease, option to renew, or similar provision, or combination thereof, or as of

the date of registration under chapter 39-05. Lease consideration, when all or part of

the lease is a gift or other agreement for nominal value, also includes the average

value of similar motor vehicle leases established by standards and guides as

determined by the director of the department of transportation.

2. With respect to any lease for a term of one year or more of a motor vehicle with an

actual vehicle weight of ten thousand pounds [4535.92 kilograms] or less, originally

leased outside this state and subsequently entering this state for use, any remaining

receipts due or consideration to be given after the lessee brings the motor vehicle into

this state are subject to tax as if the lessee had entered or exercised the lease, option

to renew, or similar provision, or combination thereof, for the first time in this state,

notwithstanding section 57-40.3-09.