Bill > HB1436

This bill modifies the motor vehicle excise tax in North Dakota by establishing a tiered tax rate structure based on the age of the vehicle at the time of purchase or acquisition. Under the new provisions, vehicles fewer than eleven years old will be taxed at 5%, vehicles between eleven and twenty-five years old will be taxed at 3%, and vehicles over twenty-five years old will be taxed at 1%. The tax continues to be assessed on the purchase price of motor vehicles purchased or acquired both inside and outside of North Dakota that are required to be registered in the state. The bill removes the word "hereby" and "the" from the existing law and clarifies the language around the tax assessment. The changes will take effect for taxable events occurring after June 30, 2025, giving taxpayers and tax authorities time to prepare for the new graduated tax rate system.