North Dakota Expands Exemption for Farm Machinery to Include Dairy Farm Equipment

Alex Samuel
May 12, 2017

This blog was last updated on June 26, 2021

Effective July 1, 2017, North Dakota will expand the definition of “Farm Machinery” to include machinery, equipment and materials used exclusively in a milking operation of a dairy farm. In North Dakota, sales of new farm machinery sold exclusively for agricultural purposes are taxed at a lower tax rate of 3% compared to the general sales tax rate of 5% for tangible personal property. Used farm machinery used exclusively for agricultural purposes is exempt from state and local sales taxes.  

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Author

Alex Samuel

Alex Samuel is a Junior Regulatory Counsel at Sovos Compliance. Within Sovos’ Regulatory Analysis function, Alex focuses on enterprise sales tax issues arising in various domestic and international jurisdictions. Prior to Sovos, Alex worked as an attorney at New Hampshire Legal Assistance. Alex is a member of the New Hampshire and Massachusetts Bars, earned his B.S. from the University of Minnesota and his J.D./LL.M from the University of New Hampshire School of Law.
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