June 20, 2002

N.D. Used Farm Machinery and Repair Parts Sales Tax Repeal Effective July 1

As of July 1, there will be no North Dakota sales tax on the purchase of used farm machinery and farm repair parts, reminds Ron Haugen, farm economist for the North Dakota State University Extension Service.

Haugen notes that the 2001 Legislature voted to retain the 1.5 percent tax until June 30 and repeal it completely thereafter in an effort to help both farmers and implement dealers. The sales tax on the purchase of new farm machinery remains at 3 percent.

On an individual basis, the savings compared to the current rate is small. A producer would realize a $15 savings on a purchase of $1,000 of repair parts and $150 in savings on the purchase of $10,000 of used machinery.

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Source: Ron Haugen, (701) 231-8103, rhaugen@ndsuext.nodak.edu
Editor: Tom Jirik, (701) 231-9629, tjirik@ndsuext.nodak.edu