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HB 1281

AN ACT to amend and reenact sections 57-43.1-03.3, 57-43.2-04.5, and 57-43.3-03.1 of the North Dakota Century Code, relating to motor vehicle fuel tax, special fuels tax, and aviation fuel tax refunds for fuels purchased by fire departments; and to provide an effective date.

69th Legislative Assembly (2025-26) Introduced by Mike Berg and 10 co-sponsors

ND HB 1281 allows fire departments and EMS to apply for refunds of motor vehicle, special fuels, and aviation fuel taxes on fuels used in official operations.

Filed with Secretary Of State 03/14
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WeVote Research Nonpartisan
Bill Summary · HB 1281

Summary — North Dakota HB 1281 (2025)

Title: An Act to amend and reenact sections 57-43.1-03.3, 57-43.2-04.5, and 57-43.3-03.1, NDCC — fuel tax refunds for fuels purchased by fire departments

Sponsors: Representatives Pyle, Berg, Brandenburg, Christy, Kiefert, Novak, Vollmer; Senators Kessel, Luick, Patten, Weber, Weston

Status: Filed with Secretary of State (03/14/2025). Effective for taxable events occurring after June 30, 2025.

Main purpose

The bill expands and clarifies tax‑refund eligibility under North Dakota law to expressly allow emergency medical services operations and fire departments to obtain refunds of motor vehicle fuel tax, special fuels tax, and aviation fuel tax for fuel purchased and used by those entities.

Key provisions

  • Amends three statutory sections:
    • 57-43.1-03.3 (motor vehicle fuel tax)
    • 57-43.2-04.5 (special fuels tax)
    • 57-43.3-03.1 (aviation fuel tax)
  • Entitlement to refund:
    • Upon application to the Tax Commissioner, the operator of an emergency medical services operation licensed under chapter 23‑27 or a fire department is entitled to a refund of taxes paid under the respective chapters for fuel purchased and used by the EMS operation or fire department.
  • Definition of “fire department”:
    • For each section the bill defines “fire department” to mean a fire department or fire district that has filed a certificate of existence under NDCC §18‑04‑02 which has been approved (i.e., an organized, recognized department/district).
  • Special rule (motor vehicle fuel tax):
    • The motor vehicle fuel tax refund provided in 57‑43.1‑03.3 is not subject to the usual statutory reduction that otherwise directs a portion of refunds into the agricultural products utilization fund or the agricultural research fund.

Who is affected

  • Directly affected: organized fire departments or fire districts (that have an approved certificate of existence) and operators of emergency medical services operations licensed under NDCC chapter 23‑27 — these entities may apply to the Tax Commissioner to recover fuel taxes paid on qualifying fuel purchases used in official operations.
  • Indirectly affected: State tax administration (processing and auditing refund claims) and state funds/receipts to the extent refund claims reduce net fuel tax revenues (the bill explicitly protects certain refund amounts from the agricultural fund reduction only for the motor vehicle fuel provision).

Procedural / timeline aspects

  • Effective date: applies to taxable events occurring after June 30, 2025.
  • Administrative action required: eligible EMS operators and fire departments must submit applications to the Tax Commissioner to receive refunds; the Tax Commissioner will administer refunds under the amended statutory provisions.

Potential fiscal/administrative impact (summary)

  • The bill authorizes additional or clarified refund claims, which could reduce net fuel tax receipts to the state to the extent fire departments and EMS claim refunds on previously taxed fuel. The bill removes a specified reduction for agricultural funds for motor vehicle fuel refunds. Exact fiscal impact would depend on the volume of eligible refund claims and is not specified in the bill text. Administrative costs may increase modestly to process/verify refund applications.

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

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