(330) Bundled transactions
N.D. Cent. Code § 57-39.4-32
in effect57-39.4-32. (330) Bundled transactions
1. A member state shall adopt, and utilize to determine tax treatment, the core definition
for a "bundled transaction" in the agreement.
2. Member states are not restricted in their tax treatment of bundled transactions except
as otherwise provided in the agreement. Member states are not restricted in their
ability to treat some bundled transactions differently from other bundled transactions.
3. In the case of a bundled transaction that includes telecommunications service,
ancillary service, internet access, or audioprogramming or videoprogramming service:
a. If the price is attributable to products that are taxable and products that are
nontaxable, the portion of the price attributable to the nontaxable products may
be subject to tax unless the provider can identify by reasonable and verifiable
standards such portion from its books and records that are kept in the regular
course of business for other purposes, including, but not limited to, nontax
purposes.
b. If the price is attributable to products that are subject to tax at different tax rates,
the total price may be treated as attributable to the products subject to tax at the
highest tax rate unless the provider can identify by reasonable and verifiable
standards the portion of the price attributable to the products subject to tax at the
lower rate from its books and records that are kept in the regular course of
business for other purposes, including, but not limited to, nontax purposes.
c. The provisions of this section shall apply unless otherwise provided by federal
law.
4. In the case of a transaction that includes an "optional computer software maintenance
contract" for prewritten computer software and the state otherwise has not specifically
imposed tax on the retail sale of computer software maintenance contracts, the
following provisions apply:
a. If an optional computer software maintenance contract only obligates the vendor
to provide upgrades and updates, it will be characterized as a sale of prewritten
computer software.
b. If an optional computer software maintenance contract only obligates the vendor
to provide support services, it will be characterized as a sale of services.
c. If an optional computer software maintenance contract is a bundled transaction in
which both taxable and nontaxable or exempt products that are not separately
itemized on the invoice or similar billing document, the contract shall be
characterized as all taxable.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://ndlegis.gov/cencode/t57c39-4.pdf#nameddest=57-39p4-32Fetched: 10/16/2026