North Dakota Code 57-65-02 – Imposition of tax on potash
A tax at the rate of two percent is imposed upon all potash produced within this state. The tax levied attaches to the whole production of potash except any byproducts of potash taxed under section 57-65-03.
Terms Used In North Dakota Code 57-65-02
- Contract: A legal written agreement that becomes binding when signed.
- Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
- Rule: includes regulation. See North Dakota Code 1-01-49
- State: when applied to the different parts of the United States, includes the District of Columbia and the territories. See North Dakota Code 1-01-49
- United States: includes the District of Columbia and the territories. See North Dakota Code 1-01-49
- written: include "typewriting" and "typewritten" and "printing" and "printed" except in the case of signatures and when the words are used by way of contrast to typewriting and printing. See North Dakota Code 1-01-37
- year: means twelve consecutive months. See North Dakota Code 1-01-33
1. The tax on potash is assessed against the sales price of the potash in an arm’s-length contract between the taxpayer and the purchaser. If a potash sale or transfer is not the result of an arm’s-length contract, the tax is calculated by taking a ton of two thousand pounds [907.18 kilograms] of potash produced times the potash tax rate times the annual average price of potash. The “annual average price of potash” for each twelve-month period beginning July first is the potash producer price index (commodity code PCU212391212391) as calculated and published by the United States department of labor, bureau of labor statistics, for the previous calendar year. For taxable production for the twelve months beginning July 1, 2011, the “annual average price of potash” is three hundred fifty-seven dollars and ten cents.
2. The tax department shall provide the annual average price of potash for the fiscal year to affected taxpayers by written notice mailed before June first.
3. If the potash producer price index is discontinued, a comparable index must be adopted by the department by an administrative rule.