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HB 1139

AN ACT to create and enact a new subsection to section 57-39.2-04 of the North Dakota Century Code, relating to a sales tax exemption for fire departments; and to provide an effective date.

69th Legislative Assembly (2025-26) Introduced by Kathy Frelich and 5 co-sponsors

HB 1139 provides sales tax and motor vehicle excise tax exemptions for qualifying fire departments and districts on goods, services, and vehicles used for fire protection.

Filed with Secretary Of State 04/23
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WeVote Research Nonpartisan
Bill Summary · HB 1139

HB 1139 — North Dakota (Sixty‑ninth Legislative Assembly)

Summary — Sales tax and motor vehicle excise tax exemptions for fire departments

Purpose

HB 1139 creates targeted tax exemptions to reduce the tax burden on fire departments and fire districts in North Dakota for goods, services, and motor vehicles used to provide fire‑protection services.

Key provisions

  • Adds a new subsection to NDCC § 57‑39.2‑04 (sales tax):
    • Exempts gross receipts from sales made to a qualifying fire department when the sale is for the purpose of providing fire protection services.
  • Adds a new subsection to NDCC § 57‑40.3‑04 (motor vehicle excise tax) (per Senate amendments):
    • Exempts any motor vehicle acquired or leased and in the possession of a qualifying fire department when the vehicle is used to provide fire protection services.
  • Eligibility definition:
    • “Fire department” means a fire department or fire district that has filed an approved certificate of existence under NDCC § 18‑04‑02.
  • Effective date:
    • The Act applies to taxable events occurring after June 30, 2025.

Who is affected

  • Directly affected:
    • Approved fire departments and fire districts in North Dakota (those with an approved certificate of existence under NDCC § 18‑04‑02).
    • Sellers and lessors who supply goods, services, or motor vehicles to qualifying fire departments.
  • Indirectly affected:
    • Local and state tax administration due to changes in which transactions are taxable.
    • Vendors who may need to verify purchaser eligibility for the exemption.

Fiscal and administrative impact

  • The bill will reduce state tax receipts to the extent fire departments claim the new sales tax and motor vehicle excise tax exemptions; the magnitude depends on the volume and timing of exempt purchases. No dollar estimate is provided in the bill text.
  • Administrative impact is likely limited but will include:
    • Department of Revenue (or equivalent) changes for exemption processing and verification procedures.
    • Sellers’ need to collect documentation that a purchaser is an approved fire department (per NDCC § 18‑04‑02).

Procedural / timeline notes

  • Statutory citations amended: new subsections to NDCC § 57‑39.2‑04 and § 57‑40.3‑04.
  • Effective for taxable events after June 30, 2025.
  • Sponsors and legislative action:
    • The bill text with Senate amendments lists Representatives Pyle, Frelich, Grueneich, Novak and Senators Kessel, Klein, Myrdal as sponsors/authors of the amended version.
    • Enrollment text records House vote 49–38 and Senate vote 47–0; filed with the Secretary of State on 04/23 (per the enrolled documents).

Notes: Multiple documents bearing the label “HB 1139” from other states and sessions (on unrelated topics) were included in the materials; this summary restricts itself to the North Dakota HB 1139 that creates the sales tax and motor vehicle excise tax exemptions for qualifying fire departments.

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

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