North Dakota Vending Machine Permits and Licenses

Vending permits and licenses by state · North Dakota

North Dakota has no general state license for vending machines. Most operators need one thing from the state: a sales and use tax permit from the Tax Commissioner, with no fee set in law. Groceries are tax-exempt, but food sold through a vending machine is not, down to fruit and plain water. Machines that sell perishable food also need a $40 yearly vending license from the Department of Health and Human Services. Below is each requirement and the law it comes from.

North Dakota vending requirements at a glance

SFN 21950Resale certificate form

5%State sales tax

8.75%Max combined sales tax

$40Yearly food vending license

Required

Sales tax permit

Sales and use tax permit from the Tax Commissioner if you sell anything taxable. No fee in state law.

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Recommended

Resale certificate

Buy inventory tax-free with SFN 21950 or the Streamlined certificate. You collect the tax when it sells.

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Applies

Tax on vending food

Groceries are exempt, but vending food is taxable, even fruit and plain water. Cash or card.

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Depends

Food vending license

$40 a year from the state for machines with perishable food. Sealed snack, candy and canned soda machines are excluded.

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Not required

Trading card license

Pokémon cards need only the sales tax permit.

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Not required

Mystery products

No special license. They are taxable merchandise, covered by your sales tax permit.

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Varies

Local permits

City and county sales tax applies at each machine. Cities can also require business or zoning approval.

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Not required

Property tax on equipment

North Dakota exempts business personal property, like equipment and inventory, from property tax.

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Last reviewed: October 28, 2026  ·  Sources: North Dakota Century Code, North Dakota Administrative Code, Office of State Tax Commissioner, ND Department of Health and Human Services, ND Attorney General, ND Secretary of State, federal regulations (full list at the bottom)  ·  General information, not legal advice.

• Requirements and laws
• Do you need a license?
• Sales tax
• Food and drinks
• Cards, mystery and toys
• Federal rules
• Business setup
• FAQ
• Sources

North Dakota requirements and the laws behind them

Do you need a license to run a vending machine in North Dakota?

Not for machines that sell merchandise. North Dakota regulates what your machines sell and how you collect tax on it. The Secretary of State's Start a Business page lists the licenses state agencies issue, and none is a general vending license.

If your machines sell anything taxable, like trading cards, toys, candy or soda, the one state registration you need is a sales and use tax permit. Two narrower state licenses can apply on top of it:

• Food vending license: from the Department of Health and Human Services, for machines that sell perishable food. See the food section below.
• Amusement game license: from the Attorney General, for coin-operated games, which may include claw machines.

The Attorney General's transient merchant license ($200 plus a bond) covers temporary selling by someone who does not become a permanent merchant of the place (N.D.C.C. 51-04-01). If you place a machine only for a short event, ask the Attorney General's licensing section. Cities and counties can add their own business or zoning rules, so check with the city where each machine will sit before you install it.

Sales tax on vending sales in North Dakota

The sales and use tax permit

North Dakota law says a person may not do business as a retailer without a permit from the Tax Commissioner (N.D.C.C. 57-39.2-14). The Office of State Tax Commissioner says to apply 30 days before you open.

• Cost: the statute sets no fee for a new permit. It charges only to reissue a permit the Commissioner revoked: $50, or $5 if it was revoked for four straight quarters of returns showing no tax due.
• Where to apply: online in ND TAP, the Tax Commissioner's portal.
• Coverage: the law issues a permit for each place of business, displayed there. No North Dakota rule or guideline we found says whether a vending machine is a place of business, so ask the Sales Tax section at (701) 328-1246 how to list your machine locations.
• Filing: monthly, quarterly or annually, as set when you apply, even when no tax is due. City and county tax goes on the same return.
• Who owes the tax: with no written agreement that divides the receipts between you and the location, the machine owner owes the tax on everything the machine takes in (N.D. Admin. Code 81-04.1-04-10).

You collect the tax, so buy your inventory tax-free

The sales tax on vending sales is yours to collect and send to the state. That is why you should not also pay sales tax when you buy the inventory. A sale for resale is not taxed when the buyer gives the seller a North Dakota resale certificate, the Multistate Tax Commission uniform certificate, or a Streamlined Sales Tax certificate of exemption (N.D. Admin. Code 81-04.1-01-15). The Tax Commissioner's Coin Operated Machines Guideline applies this to vending merchandise.

• SFN 21950, Certificate of Resale: North Dakota's own form. Enter your permit number, what you sell and the supplier's name, then sign it. Download SFN 21950 (PDF).
• SFN 62735, Streamlined Sales Tax Certificate of Exemption: the multistate form, published by the Tax Commissioner. Check reason G (resale) and put your permit number in the ND row. Leave the single-purchase box unchecked and it stays good while purchases are no more than 12 months apart. Download SFN 62735 (PDF).
• Blanket certificates: allowed. You do not need a new certificate for each sale, but each supplier needs a signed one on file (Rule 81-04.1-01-15). The Tax Commissioner tells suppliers to collect fresh ones at least every two years (Requirements Guideline).
• Out-of-state suppliers: the MTC Uniform certificate is accepted under the same rule. Certificates stay with the supplier, not the Tax Commissioner, and suppliers can check your number with the Permit Inquiry Tool.

The certificate covers products you resell, not the machines you sell them from. You owe sales or use tax on a vending machine itself (Rule 81-04.1-04-10). If you take inventory for your own use or give it away, you owe use tax on its cost (Rule 81-04.1-01-26; N.D.C.C. 57-40.2-02.1), reported on the Items Subject to Use Tax line of your return. A false certificate makes you personally liable for the tax (N.D.C.C. 57-39.2-10).

Sales tax rates

The state rate is 5% (N.D.C.C. 57-39.2-02.1). Many cities, and eight counties, add their own sales tax. As of October 1, 2026, the highest combined rate is 8.75%, in Grafton: 5% state, 2.75% city and 1% Walsh County. The Local Taxes by Location Guideline lists every local rate, which can change at the start of any quarter, and the Sales Tax Rate Lookup finds the rate for an address.

How vending sales are taxed in North Dakota

North Dakota has its own vending statute. Items costing 16 cents or more sold through a coin-operated vending machine are taxable, and items costing 15 cents or less are exempt (N.D.C.C. 57-39.2-03.3). The Tax Commissioner's guidelines fill in the rest:

• Cash or card: the statute says coin-operated, but the Coin Operated Machines Guideline says vending receipts are taxable "whether payment for the merchandise is made with cash, credit card, or a specially designed card." Card-only machines are taxed the same way.
• Food and drinks: North Dakota exempts most food, but not in a vending machine. The Tax Commissioner says vending receipts are always taxable, so "a piece of fruit or a bottle of unsweetened water is subject to sales tax when sold through a vending machine" (Grocery Stores Guideline). The same food sold in a store is exempt (N.D.C.C. 57-39.2-04.1; Exemptions Guideline).
• Tax-included prices: the guideline treats the tax as included in what the machine takes in. Divide gross receipts by 1 plus the combined rate at the machine's address: in Mandan at 8.25%, $1,500 ÷ 1.0825 = $1,385.68 of taxable sales. Its divisor table stops at 8.50%, so in Grafton divide by 1.0875.

Everything that is not food is taxable at the full rate too: trading cards, sealed Pokémon product, mystery items, toys and general merchandise.

Food and drinks: the North Dakota food vending license

North Dakota licenses food vending machines. State law says an establishment may not sell prepackaged food from a food vending machine without a license from the Department of Health and Human Services, and the license expires June 30 each year (N.D.C.C. 19-02.1-24). The Food Vending Rules (N.D. Admin. Code 33-33-03), amended January 1, 2026, fill in the details.

• Covered: a self-service machine that takes coins, bills, tokens or an electronic payment method and dispenses food, plus freezers, refrigerators and ovens used to store or prepare prepackaged food. Food and Lodging's license descriptions tie the license to food needing time and temperature control for safety.
• Excluded: bottled or canned soft drink machines, prepackaged ice machines, machines for prepackaged candy, cookies, crackers or similar foods that need no time and temperature control, and gumball, nut and panned candy machines.
• Cost: $140 for a new license ($40 annual fee plus a $100 application fee), then $40 a year (2026 license fee schedule). Add 50% of the annual fee if Food and Lodging requires a plan review.
• Each machine: the rule asks for an application for each vending machine, so ask Food and Lodging whether the fee is per machine. Display the license near the machines.

State law leaves vending machines out of the definition of a retail food store (N.D.C.C. 23-09-01). Eight local health units license restaurants and stores under agreements with the state, but the department's jurisdiction chart has no vending column, and license types without a local mark stay with the state. Call Food and Lodging at (701) 328-1291 before you stock perishable food.

North Dakota rules for trading cards, mystery products and toys

Pokémon and other trading cards

North Dakota has no special license for selling trading cards. They are taxable merchandise, so the sales and use tax permit covers you. The legal questions with card machines are about intellectual property, not state permits: stock authentic product, and keep Pokémon characters and logos off the machine itself. Our guide to the legal side of trading card vending machines covers both, and the Pokémon vending machine guide covers the business.

Mystery products and toys

Blind boxes, mystery bags and capsule toys are merchandise, like toys. They are taxable at the full rate, the 5% state rate plus city and county tax where the machine sits, and your sales and use tax permit covers them. We found no special license for selling them from a machine. See our mystery vending machines.

Claw and crane machines

North Dakota licenses amusement games. The law defines them as coin-operated games and devices such as electric ray guns, music boxes, picture boxes, bumper-ball or pinball, "and other similar coin-operated miniature games or devices" (N.D.C.C. 53-04-01). A claw machine may fit that definition. Machines that only vend merchandise are not on the list.

• Operator's license: $1,000 a year for machines at locations you do not own or manage. You need a North Dakota business office and a sales tax permit, and each machine carries your operator number (53-04-02).
• Location license: $25 per machine, up to 10 machines, at a business you own or manage. Licenses expire June 30.

Receipts from coin-operated amusement machines are exempt from sales tax (N.D.C.C. 57-39.2-04), but the Coin Operated Machines Guideline says the merchandise you buy for them is taxable when you buy it. Ask the Attorney General's licensing section and the Tax Commissioner whether your claw machine counts as an amusement game.

Federal rules that apply in North Dakota and every other state

ADA reach ranges

Where vending machines are provided, at least one of each type has to meet the operable parts rules in the 2010 ADA Standards (sections 228.1 and 309). The parts a customer operates, like the screen, card reader and pickup door, have to sit within reach: between 15 and 48 inches above the floor for an unobstructed reach (section 308).

Calorie labeling for food

If you own or operate 20 or more vending machines that sell food, federal rules require calorie information for any item whose Nutrition Facts label the buyer cannot see before buying (21 CFR 101.8). In glass-front machines, packages that show calories on the front in large enough type can meet the rule.

Schools

Machines that sell food to students during the school day may stock only items that meet the USDA's Smart Snacks nutrition standards. The school day runs from midnight until 30 minutes after the official school day ends (7 CFR 210.11).

Setting up the business in North Dakota

• Entity: form an LLC with the Secretary of State through its FirstStop Portal. Articles of organization cost $135 (N.D.C.C. 10-32.1-92), and every LLC files a $50 annual report by November 15, starting the year after it registers (Secretary of State). A sole proprietor using a business name registers it as a trade name.
• Income tax: LLCs, partnerships and S corporations pay no North Dakota income tax at the entity level. Their owners do. C corporations pay corporate income tax (Tax Commissioner).
• Property tax: North Dakota exempts personal property from property tax, apart from certain oil and gas refineries and utilities. The Tax Commissioner names office equipment and inventory as examples.
• Local rules: your city or county may require a business license or zoning approval. Food and Lodging tells food businesses to get it before investing (Start a Food Business).

North Dakota vending permit and license FAQ

Do I need a license to put a vending machine in North Dakota?

North Dakota has no general vending machine license. If you sell taxable items, you need a sales and use tax permit from the Office of State Tax Commissioner. Add the $40 yearly food vending license only if a machine sells perishable food, and an Attorney General license if it is a coin-operated game.

Do I need a food license for a snack vending machine in North Dakota?

Not if it sells only prepackaged candy, cookies, crackers or similar foods that need no temperature control, or bottled or canned soft drinks. The Food Vending Rules exclude those machines (N.D. Admin. Code 33-33-03-01). Machines with sandwiches, milk or other food that must stay cold need the vending license.

Is vending machine food taxed in North Dakota?

Yes. Grocery food is exempt, but the Tax Commissioner says vending machine receipts are always taxable, including fruit and unsweetened bottled water. Only items costing 15 cents or less are exempt (N.D.C.C. 57-39.2-03.3).

Do card-only vending machines pay the same sales tax in North Dakota?

Yes. The statute says coin-operated, but the Tax Commissioner's Coin Operated Machines Guideline says vending receipts are taxable whether the customer pays with cash, a credit card or a specially designed card.

Do I need a license to sell Pokémon cards from a vending machine in North Dakota?

No special license. Trading cards are taxable merchandise, so the sales and use tax permit covers sales tax. Stock authentic product and keep Pokémon characters and logos off the machine itself.

How much does a North Dakota sales tax permit cost?

State law sets no fee for a new permit. N.D.C.C. 57-39.2-14 charges only to reissue a revoked permit: $50, or $5 if it was revoked for four straight quarters of returns showing no tax due. Apply in ND TAP about 30 days before you open.

Do I pay sales tax on inventory I buy for my vending machines in North Dakota?

Not if you buy it to resell. Give your supplier SFN 21950, the North Dakota Certificate of Resale, or the Streamlined certificate (SFN 62735) with your permit number. You then collect and send in sales tax when the items sell. Inventory you use yourself or give away is subject to use tax on its cost.

Sources

1. N.D.C.C. Chapter 57-39.2, sales tax (Secs. 57-39.2-02.1, 03.3, 04, 04.1, 10, 14)
2. N.D.C.C. Chapter 57-40.2, use tax (Sec. 57-40.2-02.1)
3. N.D. Admin. Code 81-04.1-01, general rules (resale certificates, use tax)
4. N.D. Admin. Code 81-04.1-04-10, vending machines
5. ND Tax Commissioner, Sales and Use Tax, ND TAP permit application and Sales and Use Permit Inquiry Tool
6. ND Tax Commissioner, Coin Operated Machines Guideline
7. ND Tax Commissioner, Grocery Stores Guideline
8. ND Tax Commissioner, Exemptions Guideline
9. ND Tax Commissioner, Sales, Use, and Gross Receipts Tax Requirements Guideline
10. ND Tax Commissioner, Local Taxes by Location Guideline (October 1, 2026) and Sales Tax Rate Lookup
11. SFN 21950, Certificate of Resale and SFN 62735, Streamlined Sales Tax Certificate of Exemption
12. ND Tax Commissioner, New Businesses and Contractors
13. N.D.C.C. 19-02.1-24, food vending machines
14. N.D. Admin. Code 33-33-03, Food Vending Rules (amended January 1, 2026)
15. ND DHHS Food and Lodging, 2026 License Fee Schedule, License Type Descriptions and Jurisdiction Chart
16. ND DHHS Food and Lodging, Start a Food Business
17. N.D.C.C. 23-09-01, definitions
18. N.D.C.C. Chapter 53-04, licensing of amusement games
19. N.D.C.C. Chapter 51-04, transient merchants
20. ND Secretary of State, Start a Business (state licenses)
21. ND Secretary of State, LLC fees, Maintain Registration (annual reports) and N.D.C.C. 10-32.1-92, LLC fees
22. 2010 ADA Standards for Accessible Design and U.S. Access Board guide to operable parts
23. 21 CFR 101.8, calorie labeling of food in vending machines
24. 7 CFR 210.11, competitive food standards (Smart Snacks)