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North Dakota Administrative Code Title 81 — Tax Commissioner

N.D. Admin. Code § 81-04.1-01-20

Repossessed and returned property

Official textlegis.nd.govlast amended

When tangible personal property which has been repossessed by the original seller or by a finance company is resold, the entire gross receipts from such sales are taxable. When retailers sell tangible personal property on time payments, and it becomes necessary for the retailer to repossess the tangible personal property, the transaction is handled as follows:

# 1.

If the retailer previously included the total selling price of the tangible personal property in the retailer's gross sales and remitted tax to the tax commissioner but did not collect sales tax from the buyer, the retailer may enter a credit in the amount of the unpaid balance of the original sale. This credit is deductible by the retailer regardless of whether or not the retailer has assigned the installment contract. If the retailer assigns the contract, it must be assigned subject to an agreement to repurchase it in the event of default by the purchaser under the contract or subject to a guarantee that the payment under the contract will be made.

# 2.

If the retailer collected and remitted the full amount of sales tax on the full sales price at the time of sale, the retailer is not entitled to take a deduction for the goods returned unless the tax is returned to the purchaser on the unpaid balance.

# 3.

If the retailer included in gross receipts only the amount of cash actually received from the sale and did not collect full sales tax from the customer, no credit for return of the repossessed property to the retailer's stock will be allowed. When goods are returned to a retailer, and the purchase price is returned to the buyer, the retailer may claim a credit on a subsequent sales and use tax return for the amount of the sale claimed on a prior return if the previously paid tax is returned to the customer.

Amendment history

History: Effective June 1, 1984. General Authority: NDCC 57-39.2-19 Law Implemented: NDCC 57-39.2-01, 57-39.2-02.1, 57-39.2-05, 57-39.2-24, 57-39.2-27

Source: view the official PDF

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In this article (40 sections)
  1. 81-04.1-01-03 · Taxable sales - Engaging in business
  2. 81-04.1-01-03.1 · Definitions
  3. 81-04.1-01-04 · Permits
  4. 81-04.1-01-05 · Direct payment permits
  5. 81-04.1-01-06 · Sale of business - Permit not transferable
  6. 81-04.1-01-07 · Change of location
  7. 81-04.1-01-08 · Deduction for administrative expense
  8. 81-04.1-01-08.1 · Monthly sales tax returns
  9. 81-04.1-01-09 · Deposits or prepayments on purchase price of tangible…
  10. 81-04.1-01-09.1 · Effect of rate changes
  11. 81-04.1-01-10 · Freight, delivery, and other transportation charges
  12. 81-04.1-01-11 · Finance or carrying charges
  13. 81-04.1-01-12 · Processing
  14. 81-04.1-01-13 · Containers, wrapping materials, cartons, string
  15. 81-04.1-01-14 · Receipts from sales of taxable materials, supplies, and…
  16. 81-04.1-01-15 · Certificate of resale
  17. 81-04.1-01-16 · Casual or occasional sales
  18. 81-04.1-01-17 · Used or secondhand tangible personal property
  19. 81-04.1-01-18 · Goods on consignment
  20. 81-04.1-01-19 · Sale of traded-in property
  21. 81-04.1-01-20 · Repossessed and returned property
  22. 81-04.1-01-21 · Articles made to order
  23. 81-04.1-01-22 · Services
  24. 81-04.1-01-23 · Manufacturing machinery and equipment
  25. 81-04.1-01-23.1 · Recyclers
  26. 81-04.1-01-23.2 · Agricultural commodity processing facility
  27. 81-04.1-01-23.3 · Computer and telecommunications equipment
  28. 81-04.1-01-24 · Manufacturer's and retailer's federal excise tax
  29. 81-04.1-01-25 · Credit sales and bad debts
  30. 81-04.1-01-26 · Purchases subject to use tax
  31. 81-04.1-01-27 · Bookkeeping requirements
  32. 81-04.1-01-27.1 · Recordkeeping a sales and use tax transaction
  33. 81-04.1-01-28 · Coupons
  34. 81-04.1-01-29 · Calculation of tax
  35. 81-04.1-01-30 · Taxing separate articles
  36. 81-04.1-02-01 · Sales to the state of North Dakota, any subdivisions of…
  37. 81-04.1-02-02 · Contracts with governments
  38. 81-04.1-02-03 · Tangible personal property purchases - United States…
  39. 81-04.1-02-04 · Sales to federal corporations
  40. 81-04.1-03-01 · Sales to American Indians - Sales on an Indian…
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