Remote sellers must collect ND sales tax by Oct. 1, tax commissioner says
BISMARCK — Following last month’s U.S. Supreme Court ruling, North Dakota Tax Commissioner Ryan Rauschenberger said Wednesday, July 11, remote sellers must register and begin collecting state sales and use tax by Oct. 1.
The nation’s highest court said states can require out-of-state retailers to collect sales tax, overruling a 1992 decision in a case that originated in North Dakota. State legislators anticipated the ruling when they passed a law last year treating those sellers as if they have a physical presence in the state, but the law only took effect once the Supreme Court took action.
North Dakota leaders said the court’s decision was a win for brick-and-mortar retailers who were disadvantaged by online sellers. Rauschenberger, a Republican, previously estimated the state could see as much as $50 million in extra annual revenue because of the court’s decision.
Remote sellers will only be required to collect North Dakota sales tax if their taxable sales shipped here total at least $100,000 or 200 separate transactions in the previous calendar year.
“We understand the impact that the Supreme Court’s decision will likely have on businesses and we are working to ensure a smooth transition for taxpayers who have this new collection responsibility,” Rauschenberger said in a statement.