N.D. Admin. Code 81-04.1-04-35
Operators of sand and gravel pits are retailers and are liable for sales tax on receipts from sales. Sales to truckers and haulers who do not have an established place of business and are not engaged in the business of selling at retail are taxable sales. When sand or gravel is procured at the pit for delivery to one who has employed a trucker or hauler, the operator of the pit must collect and remit the tax.
Sales to truckers and haulers who sell tangible personal property are not taxable if the pit operator obtains a certificate of resale. The trucker's or hauler's sales price, including the cost of delivery, is subject to sales tax. When a pit operator agrees to deliver sand or gravel to the purchaser's home, place of business, or other designated place, the entire cost, including the cost of delivery, is subject to sales tax.
When sand or gravel is sold unsevered and is severed for the purchaser's own use, the severing is subject to use tax. It is presumed that the selling price is eight cents per ton of two thousand pounds [905 kilograms], and the tax must be computed upon this value unless the contrary is shown.
When other minerals are severed and used by the person who severs them, the severance is subject to use tax. The price upon which the tax is based is the prevailing market price for such minerals in that geographic area of the state.
N.D. Admin Code 81-04.1-04-35
General Authority: NDCC 57-39.2-19, 57-40.2-13
Law Implemented: NDCC 57-39.2-01, 57-39.2-02.1, 57-39.2-04, 57-39.2-10, 57-39.2-20, 57-40.2-01, 57-40.2-02.1, 57-40.2-05, 57-40.2-13