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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