Budget & Taxes (Procurement)

HB 1506 would have exempted enrolled members of federally recognized North Dakota tribes from the state's motor vehicle excise tax when purchasing a vehicle within the state, but only if their primary residence is on a reservation or in an Indian service area. The bill specifically required that the vehicle be acquired within North Dakota and that the tribal member reside on tribal land to qualify for the exemption. It was scheduled to take effect for tax events after June 30, 2025. The bill was introduced in January 2025 but was withdrawn from consideration on January 27, 2025, and is not currently law.

HB 1436 proposes to amend North Dakota's motor vehicle excise tax code by establishing age-based tax rates: 5% for vehicles under 11 years old, 3% for vehicles 11-25 years old, and 1% for vehicles over 25 years old. The tax applies to the purchase price of any motor vehicle acquired for use in North Dakota, whether bought inside or outside the state. The bill would have taken effect for taxable events occurring after June 30, 2025, but failed to pass the legislature in January 2025. This change would directly affect individuals purchasing new or used vehicles in North Dakota, altering the tax burden based on vehicle age.