Bill
HB 1115
ND HB1115 standardizes forms, enforces officer/partner liability with cash deposits or bonds for taxes, and raises a filing penalty from $10 to $15 per failure.
Subject: Amendments to tax-related filing forms, bonds, and related procedures (North Dakota Century Code)
Status
- Introduced by Finance and Taxation Committee at the request of the Tax Commissioner.
- Filed with Secretary of State (03/14) / Legislative action in 2025 session (see bill history).
- Bill text amends numerous sections of the North Dakota Century Code (listed below). The bill states it provides for application and an effective date (not fully shown in the excerpt).
Purpose / Intent
- To standardize and clarify certain documents and compliance obligations administered by the Tax Commissioner by (1) specifying that particular forms and contracts must use forms prescribed by the Tax Commissioner, (2) clarifying officer/partner personal liability for unpaid taxes, and (3) requiring entities that decline personal liability to post cash deposits or surety bonds with the Tax Commissioner equal to estimated annual tax liability. The bill also adjusts a filing penalty amount.
Key substantive changes (high-level)
- Contract form requirement (57‑28‑15(3))
- Requires contracts for deed (where purchase price is paid in installments) to be in a form prescribed by the State Tax Commissioner. The contract must still be executed by purchaser, county commission chairman, and county auditor, and must give the county the right to cancel on default.
- Officer/partner liability; bond or deposit option (multiple sections)
- Across many tax chapters (corporate income/franchise tax, tobacco products tax, sales/use/distributor regimes, motor fuel and related taxes, and various partnership/LLC provisions), the bill:
- Reiterates that corporate officers, LLC governors/managers, general partners, or other responsible persons are personally liable if the entity fails to file returns or pay tax.
- Provides that if those persons elect not to accept personal liability, the entity must make a cash deposit or post and maintain with the Tax Commissioner a bond/undertaking (by a surety authorized in ND) in an amount equal to the entity’s estimated annual tax liability.
- Affects sections including but not limited to: 57‑33.2‑16; 57‑33.2‑16.1; 57‑36‑09.3; 57‑36‑09.4; 57‑36‑09.6; 57‑38‑60.1–60.3; 57‑39.2‑15.2–18.1; 57‑40.2‑15.1–15.3; 57‑43.1‑16–17.5; 57‑43.2‑11–16.4; 57‑43.3‑14–21.1; 57‑63‑08.
- Filing penalty adjustment (57‑38‑60(5))
- Increases the penalty for failure to timely file required information statements (after 30 days’ notice) from $10 to $15 per failure (not to exceed $2,000).
Who is affected
- Businesses and entities subject to North Dakota tax law: corporations, limited liability companies, limited liability limited partnerships, general partners, and other persons/officers with responsibility for tax returns and payments.
- County officials (as to contract-for-deed form) and the Tax Commissioner (administration, bond/deposit oversight).
- Surety companies that may underwrite bonds for these deposits.
Potential impacts
- Administrative/financial: Entities that opt out of officer/partner personal liability will need to post either a cash deposit or obtain a surety bond equal to estimated annual tax liability — potentially increasing working capital or insurance costs for affected businesses.
- Compliance and enforcement: Clarifies the Tax Commissioner’s authority to require standardized forms and hold deposited funds/bonds to secure tax liabilities, potentially improving collection certainty.
- Minor revenue/penalty change: modest increase in per-failure penalty from $10 to $15 (administrative revenue and compliance incentive).
Procedural / next steps
- The bill amends many statutory cross-sections; implementation will be through the Tax Commissioner’s administration (prescribing forms, receiving deposits/bonds). The bill text indicates a provision for an effective date — readers should consult the enrolled/official version for the specific effective date and any transitional/application clauses.
For full details, consult the bill text and the amended North Dakota Century Code sections referenced above.
Compiled from official sources — confirm details with the bill’s official record.
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