North Dakota Century Code Title 57. Taxation § 57-39.4-33. Relief from certain liability for purchasers

1. A member state shall relieve a purchaser from liability for penalty to that member state and its local jurisdictions for having failed to pay the correct amount of sales or use tax in the following circumstances:

2. Except when prohibited by a member state's constitution, a member state shall also relieve a purchaser from liability for tax and interest to that member state and its local jurisdictions for having failed to pay the correct amount of sales or use tax in the circumstances described in subsection 1, provided that with respect to reliance on the taxability matrix completed by that member state under section 57-39.4-29, such relief is limited to the state's erroneous classification in the taxability matrix of terms included in the agreement as “taxable”, “exempt”, “included in sales price”, “excluded from sales price”, “included in the definition”, or “excluded from the definition”.

3. For purposes of this section, the term “penalty” means an amount imposed for noncompliance that is not fraudulent, willful, or intentional which is in addition to the correct amount of sales or use tax and interest.

4. A member state may allow relief on terms and conditions more favorable to a purchaser than the terms required by this section.