North Dakota to Require Out of State Sellers to Collect Sales Tax Beginning October 1, 2018

North Dakota, the first state to post an announcement that it planned to force out of state sellers to collect sales tax on the afternoon of the decision in South Dakota v. Wayfair has now officially announced the date for the start of collections.  In a release dated July 11, State Tax Commissioner Ryan Rauschenberger indicated that the sellers will be required to collect beginning on October 1, 2018.

The Commissioner pointed out the small seller exception North Dakota has in its law, an exception modeled on the South Dakota rule:

Rauschenberger added that North Dakota’s law also has a small seller exception to relieve collection burdens on small businesses. Remote sellers will only be required to collect North Dakota sales tax if their taxable sales shipped to North Dakota meet or exceed $100,000 or 200 separate transactions in the previous calendar year.

The memo instructs out of states to register as follows to collect the sales tax:

  • Remote Seller Makes Sales into Multiple States: Register through the Streamlined Sales Tax Registration System. North Dakota is one of 24 member states of the Streamlined Sales Tax program — a central, electronic registration system for all member states.
  • Remote Seller Makes Sales into North Dakota Only: Register through North Dakota’s Taxpayer Access Point (TAP).