Bill > HB1428

This bill creates a sales tax exemption for clothing sold by thrift stores operated by nonprofit organizations that are tax-exempt under section 501(c)(3) of the Internal Revenue Code. The bill provides specific definitions to clarify what qualifies as "clothing" and what does not, excluding items like belt buckles, costume masks, clothing accessories (such as handbags and jewelry), protective equipment (like hard hats and safety glasses), and sport or recreational equipment (including specialized athletic shoes and guards). These detailed definitions ensure that only general-use clothing items sold by qualifying nonprofit thrift stores will be exempt from sales tax. The tax exemption will become effective for taxable events occurring after June 30, 2025, giving businesses time to prepare for the change in tax treatment. By providing this exemption, the bill aims to support nonprofit organizations that operate thrift stores by potentially making their clothing more affordable for consumers.

Budget and Finance

https://ndlegis.gov/assembly/69-2025/regular/bill-overview/bo1428.html