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HB 1436

A BILL for an Act to amend and reenact section 57-40.3-02 of the North Dakota Century Code, relating to the motor vehicle excise tax; and to provide for an effective date.

69th Legislative Assembly (2025-26) Introduced by Keith Kempenich

North Dakota would have taxed motor vehicles by age (1% >25 years, 3% 11–25, 5% <11) on purchase price for use and registration, effective after June 30, 2025.

Second reading, failed to pass, yeas 27 nays 64
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WeVote Research Nonpartisan
Bill Summary · HB 1436

HB 1436 — North Dakota (Summary)

Note: Multiple jurisdictions used the bill number “HB 1436” in 2025; this summary covers the North Dakota version (amending ND Century Code §57‑40.3‑02) as provided.

Purpose

To amend and reenact section 57‑40.3‑02 of the North Dakota Century Code to (re)define the motor vehicle excise tax rates by vehicle age and to clarify that the excise tax is assessed on the purchase price of motor vehicles purchased in or outside the state for use and required registration in North Dakota. The bill included an effective date for taxable events after June 30, 2025.

Key provisions

  • Amends §57‑40.3‑02 (Tax imposed) to specify excise tax rates that vary by the age of the motor vehicle at time of purchase/acquisition:
    • 1% for motor vehicles more than 25 years old;
    • 3% for motor vehicles 11–25 years old; and
    • 5% for motor vehicles fewer than 11 years old.
  • States the excise tax is assessed on the purchase price of any motor vehicle purchased or acquired in or outside North Dakota for use on state streets and highways and required to be registered under state law.
  • Effective date provision: applies to taxable events occurring after June 30, 2025.

(Notes: the bill text as provided contained some formatting/ordering irregularities; the above reflects the age‑tiered rate structure contained in the draft.)

Who would be affected

  • Individuals and businesses purchasing or acquiring motor vehicles for use and registration in North Dakota — tax liability would depend on vehicle age under the proposed tiers.
  • Vehicle dealers, titling/registration offices, and the State Tax Commissioner’s office — administrative/collection processes and forms would need updating if enacted.
  • State revenue: changing rates by age could shift tax receipts (likely reducing tax on older vehicles and maintaining or increasing tax on newer vehicles, depending on prior law).

Procedural history / outcome

  • Introduced: November 21, 2024.
  • Effective date in text: taxable events after June 30, 2025 (if enacted).
  • Legislative action: reached second reading but failed to pass (recorded second reading — failed; yeas 27, nays 64).
  • Final status: did not advance (died at sine die adjournment / failed to pass).

Practical impact

Because the bill failed to pass, its provisions did not become law. Had it been enacted, the primary impacts would have been an age‑based excise tax schedule, modest administrative changes for registration and tax collection, and revenue implications dependent on the vehicle mix and purchasing patterns in North Dakota.

Compiled from official sources — confirm details with the bill’s official record.

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