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North Dakota Century Code Title 57. Taxation § 57-40.5-01. Definitions

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The following words, terms, and phrases, when used in this chapter, have the meaning ascribed to them in this section, except when the context clearly indicates a different meaning:

1. “Aircraft” includes airplanes, helicopters, manned balloons, and ultralight vehicles.

2. “Director” means the director of aeronautics.

3. “Purchase price” means the total amount paid for the aircraft whether paid in money or otherwise, provided, however, that when an aircraft or a motor vehicle that will be subject to the motor vehicle excise tax imposed by chapter 57-40.3, is taken in trade on an aircraft taxable under this chapter, the trade-in value allowed by the person selling the aircraft must be deducted from the selling price to establish the purchase price of the aircraft being sold and the trade-in allowance allowed by the seller on an aircraft accepted as a trade-in constitutes the purchase price of an aircraft.  “Purchase price” also means the fair market value when no current purchase is involved and the aircraft is moved by the owner or user from any other state into this state and on which no sales, use, or excise tax was paid by the owner or user to any other state, or on which a sales, use, or excise tax was paid by the owner or user to another state which does not have reciprocity with this state, and for which aircraft registration is required by section 2-05-11 or registration and licensing required is by section 2-05-18.  If an aircraft is purchased by a person who has paid the excise tax and who has had an aircraft stolen or destroyed, a credit must be allowed in the amount the purchaser has paid in tax on the stolen or destroyed aircraft.  The purchaser must provide the director with a notarized statement from the insurance company verifying the fact that the original aircraft was a total loss and stating the amount compensated by the insurance company for the loss.  The statement from the insurance company must accompany the purchaser's application for a certificate of registration for the replacement aircraft.  In instances in which a licensed aircraft dealer or established fixed-base aviation operator located at an airport open for public use and approved by the aeronautics commission, places into service a new or used aircraft for the purpose of renting, leasing, or dealership or fixed-base aviation operator utility service, the reasonable value of the new or used replacement aircraft must be included as a trade-in value if the new or replacement aircraft is properly registered with the aeronautics commission.  “Purchase price” when the aircraft is acquired by gift or other transfer for a nominal or no monetary consideration also includes the average value of similar aircraft, established by standards as determined by the director.  “Purchase price” when an aircraft is manufactured by a person who registered it under the laws of this state means the manufactured cost of such aircraft and manufactured cost means the amount expended for materials, labor, and other properly allocable costs of manufacture except that, in the absence of actual expenditures for the manufacture of a part or all of the aircraft, manufactured cost means the reasonable value of the completed aircraft, as determined by the director.

4. “Purchaser” means any person owning or in possession of an aircraft who makes application to the director for registration of such aircraft.

5. “Sale”, “sells”, “selling”, “purchase”, or “acquired” includes any transfer of title or ownership of an aircraft by way of gift, exchange, barter, or by any other manner for or without consideration.

6. “Use” means the exercise by any person of any right incident to ownership of an aircraft, except that it does not include the sale or holding for sale of such an aircraft in the regular course of business.

Cite this article: - North Dakota Century Code Title 57. Taxation § 57-40.5-01. Definitions - last updated January 01, 2020 |

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