North Dakota Vehicle Bill of Sale
North Dakota publishes Form SFN 2888 and charges a flat 5% motor vehicle excise tax on the stated price.
Introduction
A North Dakota vehicle bill of sale records the private sale of a car, truck, motorcycle, or other vehicle between a buyer and a seller. North Dakota publishes an official named form for this, SFN 2888, the Seller's Certificate and Vehicle Bill of Sale, issued by the ND DOT Motor Vehicle Division. That form supports the sale rather than conveying ownership. Under NDCC 39-05-17, ownership transfers when the seller endorses the assignment and warranty of title on the certificate of title itself, including the buyer's name and the selling price. The most distinctive North Dakota rule is the tax mechanic: a flat 5 percent motor vehicle excise tax on the purchase price under NDCC 57-40.3-02, collected by the Motor Vehicle Division at titling, with no local tax added and a trade-in allowance deducted from the price. So the price you state on the bill of sale and title is the figure the excise tax is calculated on. The seller must deliver the endorsed title within thirty days of purchase, and the buyer must apply for a new title with a five dollar transfer fee within thirty days of receiving it. Whether SFN 2888 must be notarized could not be confirmed from a primary source, so check with the Motor Vehicle Division. DocDraft drafts a North Dakota vehicle bill of sale from your facts, with attorney review available.
Key Things to Know
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There is an official named form. North Dakota publishes SFN 2888, the Seller's Certificate and Vehicle Bill of Sale, through the ND DOT Motor Vehicle Division. Confirm the current version of SFN 2888 with the Motor Vehicle Division, because the form details could not be verified against the primary source.
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Notarization status is unsettled. Whether the seller's signature on SFN 2888 must be notarized could not be confirmed from a primary North Dakota source, and available sources conflict. The operative transfer document is the title assignment under NDCC 39-05-17, which on its face does not require notarization. Check with the Motor Vehicle Division before you sign.
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Odometer disclosure follows the federal baseline. Under 49 CFR 580, for transfers from January 1, 2021 through December 31, 2030 any vehicle of model year 2011 or newer requires a written odometer disclosure, and from January 1, 2031 any vehicle less than 20 model years old. North Dakota requires the disclosure at title transfer.
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A flat 5% motor vehicle excise tax applies to the purchase price. Under NDCC 57-40.3-02 the Motor Vehicle Division collects a 5 percent excise tax on the purchase price at titling, with no local tax added, so the stated selling price drives the tax. A trade-in allowance is deducted from the price under NDCC 57-40.3-01.
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Title at the ND DOT Motor Vehicle Division within 30 days. The seller must deliver the endorsed certificate of title within thirty days of purchase, and the buyer must apply for a new title with a five dollar transfer fee within thirty days of receiving it, under NDCC 39-05-17.
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The bill of sale is supplementary, not the transfer instrument. Ownership transfers through the assignment and warranty of title endorsed on the certificate of title under NDCC 39-05-17. SFN 2888 is a supporting record of the sale, not the document that conveys ownership.
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The flat 5% excise tax on the stated price is the distinctive North Dakota feature. With no local add-on and a defined trade-in deduction, the price written on the bill of sale and title is exactly the base the 5 percent excise tax is figured on, which directly ties the bill of sale to the buyer's tax bill.
Key decisions before you file
Before you file a Bill of Sale in North Dakota, a few decisions shape the document: which option to choose and what each one means. The Bill of Sale guide walks through them.
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North Dakota Requirements for Bill of Sale
North Dakota publishes SFN 2888, the Seller's Certificate and Vehicle Bill of Sale, through the ND DOT Motor Vehicle Division, as a supporting record of the sale rather than the transfer instrument. Whether SFN 2888 must be notarized could not be confirmed from a primary North Dakota source and available sources conflict; the title assignment under NDCC 39-05-17 on its face does not require notarization. Confirm the current form and any notary requirement with the Motor Vehicle Division.
Identify the buyer and the seller by full legal name and address. These details support the bill-of-sale record that accompanies the title assignment endorsed on the certificate of title under NDCC 39-05-17.
Describe the vehicle by Vehicle Identification Number (VIN), year, make, model, body type, and color so it can be matched to the certificate of title at transfer with the ND DOT Motor Vehicle Division.
Record the odometer reading. North Dakota requires odometer disclosure at title transfer following the federal 49 CFR 580 baseline. For transfers from January 1, 2021 through December 31, 2030, any vehicle of model year 2011 or newer requires disclosure; from January 1, 2031, any vehicle less than 20 model years old.
State the sale price and date. North Dakota imposes a flat 5 percent motor vehicle excise tax on the purchase price under NDCC 57-40.3-02, collected by the Motor Vehicle Division at titling, with no local tax added. A qualified trade-in allowance is deducted from the selling price to set the taxable purchase price under NDCC 57-40.3-01, so the price stated on the bill of sale and title drives the excise tax.
The distinctive North Dakota mechanic is a flat 5 percent motor vehicle excise tax on the purchase price under NDCC 57-40.3-02, collected by the Motor Vehicle Division at titling as agent for the State Tax Commissioner. No local tax applies, and a trade-in allowance is deducted from the selling price under NDCC 57-40.3-01, so the stated price is exactly the base the buyer is taxed on.
Title and registration are handled by the ND DOT Motor Vehicle Division. Under NDCC 39-05-17 the seller must deliver the endorsed certificate of title to the buyer within thirty days of purchase, and the buyer must apply for a new title with a five dollar transfer fee within thirty days of receiving it.
Bring the endorsed certificate of title, the odometer disclosure, and your bill of sale to the ND DOT Motor Vehicle Division, along with payment for the five dollar transfer fee and the 5 percent excise tax due on the purchase price. Keep a copy of the title and bill of sale as proof of the transaction and the stated price.
Frequently Asked Questions
Ownership in North Dakota transfers through the assignment and warranty of title endorsed on the certificate of title under NDCC 39-05-17, which records the buyer's name and the selling price. North Dakota also publishes SFN 2888, the Seller's Certificate and Vehicle Bill of Sale, as a supporting record. A bill of sale documents the price and date of the sale, and the stated price is the base the 5 percent motor vehicle excise tax is calculated on at titling.
This could not be confirmed from a primary North Dakota source, and available sources conflict on whether the seller's signature on SFN 2888 must be notarized. The operative transfer document is the title assignment under NDCC 39-05-17, which on its face does not require notarization. Check with the ND DOT Motor Vehicle Division about whether SFN 2888 must be notarized before you complete the transfer.
Yes. North Dakota publishes SFN 2888, the Seller's Certificate and Vehicle Bill of Sale, through the ND DOT Motor Vehicle Division. It is a supporting record of the sale rather than the document that conveys ownership, since ownership transfers through the title assignment under NDCC 39-05-17. Confirm the current version of SFN 2888 with the Motor Vehicle Division before you complete the form.
North Dakota charges a flat 5 percent motor vehicle excise tax on the purchase price under NDCC 57-40.3-02, collected by the Motor Vehicle Division at titling as agent for the State Tax Commissioner. No local tax is added. A trade-in allowance is deducted from the selling price to set the taxable purchase price under NDCC 57-40.3-01, so the price stated on the bill of sale and title is the figure the 5 percent excise tax is calculated on.
Title and registration are handled by the ND DOT Motor Vehicle Division. Under NDCC 39-05-17 the seller must deliver the endorsed certificate of title to the buyer within thirty days of purchase, and the buyer must apply for a new title with a five dollar transfer fee within thirty days of receiving it. Bring the endorsed title, the odometer disclosure, your bill of sale, and payment for the 5 percent excise tax due on the purchase price.
A North Dakota vehicle bill of sale should identify the buyer and seller, describe the vehicle by VIN, year, make, and model, state the sale price and date, and record the odometer reading. The stated price matters because the Motor Vehicle Division collects a 5 percent excise tax on it at titling under NDCC 57-40.3-02. North Dakota requires odometer disclosure at title transfer following the federal 49 CFR 580 baseline.