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Committee hears bill to extend sales-tax exemption to all fire departments
Summary
The House Finance and Taxation Committee heard testimony on House Bill 1139, which would allow all fire departments in North Dakota to make sales-tax-exempt purchases regardless of organizational structure. Testimony highlighted cost impacts for 501(c)(3) departments, insurance differences, and unanswered questions about motor vehicle excise tax.
The North Dakota House Finance and Taxation Committee opened a hearing on House Bill 1139, which would allow every fire department in the state to make sales-tax-exempt purchases regardless of how the department is organized.
Representative Brandy Pyle, sponsor of House Bill 1139, told the committee the measure would “level the playing field” by eliminating discrepancies between fire departments tied to cities or rural fire protection districts and those organized independently. She said the change would let departments stretch limited budgets and “reinvest more into their operations rather than spending extra funds on taxes.”
The bill drew supporting testimony from John Hale, fire chief of the Castleton Fire Department. Hale said Castleton’s department covers about 385 square miles for primary fire protection, serves roughly 4,500…
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