Tax-Rates.org — The 2024-2025 Tax Resource

North Dakota State Excise Taxes 2024 - Fuel, Cigarette, and Alcohol Taxes

What is an Excise Tax?

An excise tax is a tax directly levied on certain goods by a state or federal government. The most prominent excise taxes collected by the North Dakota state government are the fuel tax on gasoline and the so-called "sin tax" collected on cigarettes and alcoholic beverages.

---

An excise tax is not the same thing as the North Dakota Sales Tax.

The North Dakota Sales Tax is collected as a percentage of the final purchase price of all qualifying sales, and is collected directly from the end consumer of the product.

North Dakota's excise taxes, on the other hand, are flat per-unit taxes that must be paid directly to the North Dakota government by the merchant before the goods can be sold. Merchants may be required to attach tax stamps to taxable merchandise to show that the excise tax was paid.

Even though excise taxes are collected from businesses, virtually all North Dakota merchants pass on the excise tax to the customer through higher prices for the taxed goods.

---

North Dakota per capita excise tax

North Dakota collects an average of $537 in yearly excise taxes per capita, higher then 62% of the other 50 states.

North Dakota General Excise Taxes - Gasoline, Cigarettes, and More

North Dakota collects general excise taxes on the sale of motor fuel (gasoline and diesel), cigarettes (per pack), and cell phone service plans. Other general taxes, similar to excise taxes, may be collected on other items including transportation tickets, vehicle sales, firearms, gas guzzlers, tanning salons, and more.

North Dakota Alcohol Excise Taxes - Liquor, Wine, and Beer

North Dakota collects special excise taxes on the sale of all types of alcohol, subdivided into specific taxes on wine, beer, and liquor (hard alcohol other then wine and beer). Alcohol taxes are sometimes collectively referred to as "sin taxes", which also include excise taxes on cigarettes, gambling, drugs, and certain other items.

Please note that the IRS also collects a federal excise taxes on alcoholic beverages, which are included separately from North Dakota's alcohol taxes in the final purchase price.

North Dakota Excise Tax Deductions & Refunds

Can I deduct my North Dakota Excise taxes?

Unlike the North Dakota Sales Tax, excise taxes are not generally deductible on North Dakota income tax returns or on your federal tax return. However, the IRS occasionally allows certain excise taxes to be deducted for certain tax years.

Vehicle Tax Deduction

North Dakota sales and excise taxes on cars or vehicles bought during 2009 may be deducted once from your federal tax return. You cannot deduct excise taxes for vehicles bought during other years.

Phone Tax Deduction

You may deduct excise taxes paid on long-distance phone calls between the years of 2003 and 2006 from your federal tax return.

---

Can I get a North Dakota Excise Tax Refund?

While sales tax refunds are available for goods that are purchased in North Dakota and exported, North Dakota excise taxes paid on goods are generally non-refundable. Incentives may exist allowing certain state of federal excise taxes to be refunded on goods bought for specific uses, but such incentives change frequently.

North Dakota Excise Tax - References