So far, North Dakota has collected about $660,000 in sales and use taxes from newly registered remote sellers doing business in the state.
That’s according to the North Dakota Tax Commissioner’s Office.
A remote seller is a business that sells to state residents but does not have a physical presence in North Dakota — for example, online retailers like Amazon.com and Walmart.com.
In June, the U.S. Supreme Court, in its South Dakota vs. Wayfair ruling, opened the door for states to require the collection of state sales taxes by remote sellers.
That ruling overturned a previous 1992 high court ruling in Quill vs. North Dakota, which prevented imposing a tax collection requirement on remote sellers.
In North Dakota, remote seller registration and state sales tax collection officially went into effect Oct. 1.
However, according to the Tax Commissioner’s office, many remote sellers began voluntarily collecting and remitting state sales taxes shortly after the June Supreme Court ruling. The $660,000 figure, therefore, includes collections since June and not just since Oct. 1.
The Tax Commissioner’s Office reports nearly 1,300 remote sellers have registered with the state for a North Dakota sales tax permit.
State sales taxes collected by remote sellers and remitted to North Dakota are distributed in the same way in-state sales taxes are distributed: The five percent state sales tax dollars go into the state’s General Fund, and any city or county sales tax dollars go to the particular city or county — minus state administration fees.
North Dakota has an exception to the tax collection requirement. A remote seller is not required to collect state sales tax if it has less than $100,000 in taxable sales to the state, or less than 200 separate transactions in the previous calendar year.
You can learn more about the remote seller requirements at www.nd.gov/tax/remoteseller.