IntroductionWelcome to the North Dakota Sales Tax WebFile service! WebFile is a free web-based program for filing,paying, and viewing North Dakota sales and use tax returns. The purpose of this guideline is to explain thefeatures and advantages of WebFile, instruct users how to register on-line and use the system, and provideinstructions that explain each line of the sales and use tax return.

Eligible Users. Any business or individual that holds a valid North Dakota sales and use tax permit iseligible to WebFile. If you have not yet registered for a sales and use tax permit, you must apply and receiveyour sales tax permit before you register for WebFile. To apply for a sales and use tax permit go towww.ndtaxdepartment.com and click on Sales and Use > forms on the left hand side of the page. Thenclick on Sales/Use Tax Permit and Income Tax Withholding Application.

Advantages of WebFile. The following WebFile features will help make filing your sales tax returnson-line easier and more efficient than paper:

• Availability: You can register for WebFile, file sales tax returns, and view previously filed returns 24hours a day, 7 days a week.

• Access: All returns that filed over the past six years, including returns filed on paper, are available toview on-line.

• Upload Capability: All return data, including local tax information, may be uploaded directly intoWebFile in an XML format so you don’t need to spend time keying data into your return. If you usea software product to generate your sales tax returns, check with your software vendor to see if anXML export feature is available.

• Electronic payment: Return payment may be submitted by ACH Debit, ACH Credit, credit card, orcheck. See payment methods below for a description of each method.

• Login ID: WebFile uses North Dakota’s Login ID system, which allows you to use the same ID andpassword for other Internet services provided the Tax Commissioner’s Office and other state agen-cies. The Login ID provides you the ability to identify and control which employees or outsideprofessionals have access to your sales tax returns.

• Security: WebFile uses Secure Sockets Layer (SSL) encryption technology to ensure your informa-tion is secure and protected.

• Automatic calculations: All calculations are performed by the system to create error free-returns. Inaddition, by viewing the system, you will always know which returns have been filed and the due dateof any returns that need to be completed. When you file and pay electronically, there will never be aquestion of if or when a return or payment was submitted.

• Paper and postage: All registration and return filing is completed on-line. There is no more paper toshuffle, no postage to pay, and no mail delays to worry about.

GuidelineGuidelineSales Tax WebFile

Rick ClayburghTax Commissioner June 2004

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Payment MethodsWhen you file sales tax returns by WebFile, you have the following payment options:

• ACH Debit. This is an electronic funds transfer transacted between your bank and our office. Youchoose the date you want the money withdrawn, up to the due date of the return. The tax due istransferred from your bank account on that date. This option is particularly convenient because youget to choose when the money is withdrawn, and you don’t have to contact your bank or write acheck. Best of all, our office pays the bank transaction fees.

• ACH Credit. Like the ACH Debit, this is an electronic funds transfer enacted by your bank and ouroffice. The difference is that with the ACH Credit method, it will be your responsibility to contactyour bank and initiate each payment. You will be responsible for paying all transaction fees chargedby your bank. Please contact your bank to inquire about any fees. If you select ACH Credit as yourpayment method, you must file a prenote in the proper format before you may submit a return.

• Check or Credit Card. Check or credit card is considered one payment method for registrationpurposes; however, if you select this option, you determine at the time of each payment if you want tosend a check or pay by credit card. If you choose to pay by check, you will print a voucher after thereturn has been submitted on-line. Your check must be mailed with the voucher on or before the duedate of the return. If you choose to pay by credit card, after you submit your return, you will click alink to take you to a secure web site (Link2Gov) that will accept your credit card information forpayment. Link2Gov will charge your credit card a convenience fee of 2.49 percent of the liabilitypaid.

Navigating and Entering Data in WebFileAs you navigate through the WebFile system and enter data, please remember these tips:

• Use the buttons provided in the application (i.e., Continue, Edit, Save, etc.) to navigate. All appli-cation buttons are located at the bottom of each page. Do not use your browser’s back and forwardbuttons.

• For your convenience, a Main Menu link and Logout link are located near the top of each page.Although these links will help you navigate quickly, you should click the Save or Finish Later buttonat the bottom of the page to avoid losing any recently entered data before you use these links.

• Do not enter dollar signs ($) or commas (,). All information regarding sales, nontaxable sales, anditems subject to use tax are entered in whole dollars and without a decimal point (.). Data enteredfor local option taxes and adjustments should be entered in dollars and cents.

• When filing a return, you may save your data at any time and return later to complete and submit thereturn.

• At any time, you may use the Previous or Continue buttons to move forward and backward within areturn to edit your work.

• You may change your selected payment method at any time, but a few restrictions apply. If youselect ACH Credit, you must file a prenote and the Tax Commissioner’s Office must approve yourrequest before you may make an ACH Credit payment. If you have submitted a return before thedue date and payment has not yet been made, the new payment method will not apply for the returnalready submitted and not yet processed/paid.

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Registration ProcessRegistration for WebFile is a quick three-step process: (1) Obtain a North Dakota Login ID, (2) Registerpermit to obtain authorization code, and (3) Complete registration by entering the permit number and authori-zation code.

Each person (user) that accesses the WebFile system must obtain a North Dakota Login ID (Step 1). Eachpermit must be registered on-line (Step 2) to allow users access to information regarding that permit. And,each user must complete registration for each permit they need to access (Step 3).

After a permit is registered in Step 2, the Tax Commissioner mails an authorization code to the individualregistering the permit and to the mailing address the Tax Commissioner has on file. This step prevents anyunauthorized user from registering a permit that he or she should not have access to. When the registration iscompleted in Step 3, only the user that registered the permit in Step 2 may use the authorization code mailedby the Tax Commissioner’s Office. Any authorized user may obtain another authorization code on-line sothat an additional user can complete registration (Step 3) and obtain access to that permit.

In addition, any authorized user may terminate another authorized user’s access to a permit by selecting theView Authorized Users option on the main menu. This option allows a retailer to remove access to thesystem for outside professionals or employees that no longer should have access.

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Step 1: North Dakota Login ID (Go to http://www.state.nd.us/taxdpt/salesanduse/elecfiling/ and click Access

WebFile)

A. Click Register Now.

B. Complete the Sign Uppage.

C. Click Create Login.

D. You will receive aconfirmation e-mail withina few seconds.

E. You must respond to thee-mail by clicking on thelink provided andentering your password.

F. Your North Dakota LoginID is now ready to use.Go to Step 2.

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Step 2: Register Sales Tax Permit (Go to http://www.state.nd.us/taxdpt/salesanduse/elecfiling/ and click Access

WebFile)

A. Sign in by entering yourLogin ID and password.

B. Enter the permit numberyou want to register.

C. Click Continue.

D. Based on the name andaddress displayed, verifyyou have selected thecorrect permit.

E. Enter your e-mail address,select a payment method(if you selected ACHDebit, enter your bankinformation), and enteryour name in the Atten-tion Name box.

F. Click Submit.

G. You will receive aconfirmation page.

H. An authorization codewill be mailed to themailing address on file atthe Tax CommissionersOffice.

I. If you have more permitsto register, click theRegister another permit toWebFile link.

Continued on next page

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Step 2: Register Sales Tax Permit (Continued)

Important Note: After you complete Step 2, Register Sales Tax Permit, an authorization code will bemailed to you at the mailing address we have on file for the permit you are registering. When you register forWebFile, please allow sufficient time (we recommend two weeks) for the authorization code to reach you bymail prior to the next return due date. If you do not receive an authorization code before the next return duedate, you will be required to file paper returns for the current period.

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Step 3: Complete Registration (Go to http://www.state.nd.us/taxdpt/salesanduse/elecfiling/ and click Access

WebFile)

A. Sign in by entering yourLogin ID and password.

B. Scroll to the CompleteRegistration section ofthe page.

C. Enter the permit numberand authorization codeyou received in the mail.

D. Click Submit.

E. You will receive a confir-mation page. You nowhave access to allWebFile features for thispermit.

F. If you have more permitsto complete registrationfor, click Main Menuand then the CompleteRegistration option.

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Main MenuOnce a user has completedregistration for a permit, thatuser may access all thefeatures of WebFile from theMain Menu. Please notethat the user ID of theperson logged onto thesystem, the permit numberand business name of thepermit currently selected isalways displayed near thetop of the screen. Byviewing this information,any user who is registered toaccess more than one permitwill know which permit’sinformation is currentlybeing accessed.

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Main Menu – ContinuedSelect Sales Tax Return

Select Sales Tax Return.Click on this option toobtain a list of all returnsthat are available to file.Then click on the desiredaction for the tax period youwish to work with. You cansave your work at any pointin the process and completeit at a later time.

ActionClick Start to open a salestax return if you willmanually key in the returndata.Click Upload if you willautomatically transfer yourdata from an XML file.Click Edit to open andcomplete a return that youalready started, but savedbefore submitting it.Click Pay Now to print avoucher or to pay by creditcard. This option isavailable only after a returnhas been submitted andonly if you are registered topay by check or credit card.Click View if you havesubmitted a return butdiscover you need to editthe return or paymentinformation.

Important Note: the Viewoption is available only forthe remaining portion of thesame day you submittedyour return. You cannotedit a return the day afteryou submit it.

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Main Menu – ContinuedView Previously Filed Returns

View Previously Filed SalesTax Returns. Click on thisoption to obtain a list of allthe returns you have filedfor the past six years. Toview a return, click on thereturn period.

Returns you have filed(either electronically or onpaper) for the past six yearswill be available to view orprint

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Main Menu – ContinuedSelect Permit

Select Permit. Click on thisoption to obtain a list of allpermits for which you havecompleted registration.

To obtain access to a permiton WebFile, a user mustfirst complete registrationfor the permit. This featureprovides a high level ofsecurity to the system.When a user clicks onSelect Permit, the systemlists every permit that theuser has access to. If a userhas only one permit, thisoption will not be available.

Any authorized user mayprovide access to anotheruser by obtaining anauthorization code on-line(see View AuthorizedUsers).

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Main Menu – ContinuedView Payment Information

View Payment Information.Click on this option to viewthe method of payment youpreviously selected. If yourcurrent payment method isACH Debit, the paymentinformation page alsodisplays information aboutthe bank account fromwhich you have authorizedpayment.

To change your method ofpayment, click Edit. Onthe Edit Payment Informa-tion page, select one of theother payment methods. Ifyou select ACH Debit, youwill also be asked toprovide information aboutthe back account you wantto make your payment from.To submit the change, clickUpdate.

Important note: If youselect ACH Credit, youmust file a prenote beforeyou can pay by credit.

Main Menu – ContinuedRegister New Permit

Register New Permit.Select this option to registeranother sales tax permit toWebFile. If you are at theMain Menu, you havealready completed registra-tion for at least one otherpermit.

The registration process foradditional permits is thesame process you com-pleted for the originalpermit.

A. Enter the permit numberyou want to register.

B. Based on the name andaddress displayed, verifyyou have selected thecorrect permit.

C. Enter your e-mail addressand select a paymentmethod. If you selectedACH Debit, also enteryour bank accountinformation.

D. Click Submit.

E. You will receive aconfirmation page.

F. An authorization codewill be mailed to themailing address on file atthe Tax CommissionersOffice.

G. If you have more permitsto register, click theRegister another permit toWebFile link.

From Main Menu

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Main Menu – ContinuedComplete Registration

Complete Registration.Select this option tocomplete registration foranother sales tax permit. Ifyou are at the main menu,you have already completedregistration for at least oneother permit.

The process to completeregistration for additionalpermits is the same processyou completed for theoriginal permit.

A. Enter the permit numberand authorization code youreceived in the mail.

B. Click Submit.

C. You will receive aconfirmation page. Younow have access to allWebFile features for thispermit.

D. If you have more permitsto complete registration for,click Main Menu and then,Complete Registrationoption.

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Main Menu – ContinuedView Authorized Users

View Authorized Users.Click this option to view allusers that are authorized toaccess WebFile for thispermit. By selecting thisoption any authorized usermay delete existing users orobtain an authorizationcode for a new user.

To authorize another user toaccess this permit, click theObtain an authorizationcode for a new user link.WebFile will display a newauthorization code that youmay give to another user.The new user will need to(1) obtain a North DakotaLogin ID (if he or she doesnot already have one), (2)log on to the WebFilesystem, and (3) enter thepermit number and authori-zation code at the CompleteRegistration option. Thesesteps will provide access tothe new user for all WebFilefunctions for this permit.

To discontinue access foran authorized user, selectthe Remove link next to theuser’s name. The user’sname will be displayed. Toremove access for the user,click the Remove button.If you decide not to removeaccess for the user, selectthe Cancel button.

Important note: If you arethe only authorized userand you click the Removelink by your name and thenconfirm that action byselecting the Removebutton, the permit will nolonger be registered forWebFile because there willbe no authorized users.

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Filing a Sales Tax ReturnReview Taxpayer to File Information

To file a sales tax return,click the Select Sales TaxReturn option on the mainmenu.

A. If this is the first time youhave selected this returnperiod, click Start (toenter the data manually)or Upload (to automati-cally load data from anXML file). If you havealready opened thisreturn, click Edit.

B. If you selected Upload,you will be asked to enterthe path and name of thefile you want to upload.Enter the path and filename and click Continue.

OrIf you select Start, thereturn will open to theReview TaxpayerInformation section.

C. Taxpayer Address. Pleaseverify the postal and e-mail addresses arecorrect. To correctaddresses: click the Editbutton, enter the correctinformation, and click theSave button.

D. Ownership Change. Ifthe business has changedownership, enter thename, address and phonenumber of the new owner.

E. Final Return. If this is afinal return for this permit,click the check box andenter the last day ofbusiness for this location.

F. Corporate Officers. Ifany of the corporateofficers have changedplease click the checkbox.

Click Continue button tocontinue the filing process.

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Filing a Sales Tax Return – cont.Sales, Nontaxable Sales, and Purchases Information

If all your sales are subjectto 5 percent tax your returnwill have one column. Ifyou also collect tax atanother rate, your returnwill have two columns.

A. Total Sales. Enter totalsales for the period,including nontaxablesales, in the first line. Ifyou have no sales, enterzero.

B. Nontaxable Sales. Enterthe amount of nontaxablesales for each categorylisted.

C. Items Subject to Use Tax.On the bottom line of thepage, enter the total costof purchases on whichyou owe North Dakotause tax. (Local use taxdue will be recorded inthe Local Option Salesand Use Taxes section.)

Click Continue button tocontinue the filing process.

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Filing a Sales Tax Return – cont.Local Option Sales and Use Tax

The North Dakota 1 percenthotel/motel tax and all cityand county sales and usetaxes are reported in thissection.

A. Add/Remove Locations.The first time you file areturn for this permit,none of the locations willdisplay on this page. Ifyou have ND hotel/moteltax or local taxes toreport, click theAdd/Remove Locationsbutton to select NDhotel/motel tax or thename of each locationyou need to report.Select the appropriatebox(es) and click theContinue button at thebottom of the page. TheLocal Option Sales andUse Tax page will beupdated with the loca-tions you selected.

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Filing a Sales Tax Return – cont.Local Option Sales and Use Taxes - cont.

Each time you return to thispage, the locations selectedduring the previous use willdisplay. Locations may beadded or deleted at anytime.

B. Enter the dollar amountsof ND hotel/motel tax andlocal taxes that are due.Do not deduct anycompensation on thispage. Any applicablecompensation will bededucted from the tax dueby WebFile.

Click the Calculate Totalbutton to sum the valuesyou have entered on thispage.

Click Continue button tocontinue the filing process.

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Filing a Sales Tax Return – cont.Sales Tax Adjustments

Sales Tax Adjustments. Ifthe Tax Commissioner’sOffice has issued thispermit a credit for overpay-ment of tax, enter theamount of credit here. Theadjustment will reduce theamount of tax due with thereturn.Click Continue button tocontinue the filing processImportant Note: Creditsmust be approved by theTax Commissioner’s Office.Unauthorized credits aresubject to assessment andapplicable penalty andinterest.

Return Summary and Payment Information

Return Summary. Thissection of the page displaysvarious subtotals and thetotal due with the return,which has been calculatedbased on the informationentered.Payment Information. Thepayment informationreminds you of the paymentmethod you have selectedfor this permit. If yourpayment method is ACHDebit, you will also beasked to verify the paymentamount to be withdrawnfrom your bank account andthe payment date. You maychange the paymentamount to any dollar value;however, you will besubject to penalty andinterest if the return is notpaid in full. You may alsochange the payment date toany date up to the due dateof the return.Click Continue button tocontinue the filing process

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Filing a Sales Tax Return –cont.Review/Submit Return

Review/Submit Return.Review the completedreturn for accuracy. If youneed to make changes, clickthe Previous button tomove back to the page thatneeds correction.

You may use the Previousand Continue buttons asoften as necessary untilyou are satisfied allinformation in the return iscorrect.

When all corrections aremade, click the Continuebutton on each page untilyou return to the Review/Submit Return page.

Click the Submit button atthe bottom of the page toelectronically file yourreturn with the TaxCommissioner’s Office.

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Filing a Sales Tax Return –cont.Confirmation

Confirmation. After yousubmit the return, the nextpage will display a confir-mation number and a briefstatement reminding youabout the payment methodyou have selected and theaction you must take, ifany, to pay the balance duewith the return.

If you pay by ACH Debit,payment will be withdrawnfrom the bank account youidentified during registra-tion.

If you pay by ACH Credit,you must contact yourback to initiate payment.

If you pay by check, thepayment information willinstruct you how to printthe voucher that must bemailed with your check.

If you pay by credit card,click on the Link2Gov linkto submit credit card andpayment information.

You may also view andprint from this page thereturn you just submitted.

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Form ST - Sales and Use Tax Return InstructionsGeneral Instructions

Filing requirement. Every permit holder must file a return for each reporting period even if no sales weremade or not tax is due.

Due dates. All returns are due the last day of the month following the reporting period. If the normal duedate falls on a Saturday, Sunday, or legal holiday, the return is due the next business day. To avoid penaltyand interest, the WebFile return must be submitted and payment must be iniatiated by the due date.

Payment. Payment is iniatiated: on the ACH Debit withdrawal date specified on the return, when the ACHCredit payment is issued by the payor’s bank, when credit card payment is submitted on-line to Link2Gov,or when the U.S. Postal Service postmarks the envelope mailing the check and voucher.

Tax Periods. Permit holders are assigned a filing schedule of monthly, quarterly, semiannual or annual.Reporting periods are identifed by the four-digit year plus one character. Monthly periods are identified as A(January) through L (December) and other periods are identified as 1 (ending March 31), 2 (ending June 30),3 (ending September 30), or 4 (ending December 31). For example 2005A is January 2005 and 20054 isthe fourth quarter of 2005 or a longer period ending December 31, 2005.

Specific Line Instructions

Calculations. WebFile makes all calculations on the return. Just enter or upload the data and let the systemdo the work.

One or two-column format. If you are registered to report sales or purchase activity at only the state’s 5percent general tax rate, your Form ST return will have only one column. If you report activity at twodifferent state rates, your return will have two columns. If you report at two different state rates, use ColumnB to report 5 percent activity. Column A is for sales and purchases taxed at all other rates (except for rentalof hotel, motel and tourist court accomodations – see below). North Dakota’s sales tax rates are:

• 2 percent – sales of natural gas.• 3 percent – sales of new farm machinery, new farm irrigation equipment, and new mobile homes.• 7 percent – sales of alcoholic beverages, both on and off sale.• 5 percent – all other taxable sales of tangible personal property, admissions, amusements, taxable

services (steam, communications), and lease or rental of tangible personal property.

Hotel, motel, and tourist court accomodation rentals. From July 1, 2003 through June 30, 2007, theleasing or renting of hotel, motel or other tourist court accomodations for periods of less than 30 consecutivedays, excluding bed and breakfast accomodations, are subject to state sales tax of 6 percent. Grossreceipts from these rentals are reported in Column B with 5 percent activity. The additional 1 percent tax isreported in the local option tax section of the return under local code 600 (ND Hotel/Motel).

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Total Sales. Enter total sales (rounded to whole dollars) but do not include the tax charged or collected.Out-of-state businesses should enter North Dakota sales only. If you did not have any sales for the period,you must enter zero.

Nontaxable Sales. Itemize each type of nontaxable sales (rounded to whole dollars) in the subcatagorieslisted under the Nontaxable Sales heading.

Items Subject to Use Tax. Enter the purchase price (rounded to whole dollars) of taxable goods andservices purchased by you for your own use but on which you did not pay sales or use tax. If none, enterzero. Taxable purchases include goods purchased from out-of-state suppliers; resale goods taken out ofinventory for use; items given away; machinery, equipment, materials or supplies purchased by a contractoror other service provider.

Local Option Sales and Use Tax. Enter all local tax amounts (and the 1 percent ND Hotel/Motel tax) indollars and cents. Enter the total amount of tax due for each city, county, and the ND hotel/motel tax. Forlocal taxes, the tax due is equal to the amount of local sales or use tax you should have charged on salesmade within the local jurisdiction plus any local use tax due on untaxed goods or services subject to use taxbecause they were stored, used or consumed within the local jurisdiction. For the ND hotel/motel tax, thetax is 1 percent of the gross reciepts from leasing or renting of hotel, motel or other tourist courtaccomodations subject to the state’s 6 percent tax rate. Do not deduct compensation from the tax reported.The WebFile system will calculate and deduct all elegible compensation.

Sales Tax Adjustments. Enter the amount of tax credit authorized in a letter from the Office of State TaxCommissioner. Unauthorized credits will be assessed and are subject to penalty and interest for late pay-ment.

Out of Business or Cancelling WebFile RegistrationOut of BusinessThe sales tax law requires a permit holder that is going out of business to file a final sales tax return within 15days. If the return for the final reporting period is not present in the WebFile system, contact the TaxCommissioner’s Office. Code the return as a final by checking the Final Return box and entering the last dayof business. The final return data is in the Review Taxpayer Information section of the return. Also,please complete the Change in Ownership section, if applicable. The final step when going out of businessis to cancel registration (see below).

Cancel WebFile RegistrationIf you are going out of business or for any reason want to file paper sales tax returns, you must cancel yourWebFile registration for each permit. To cancel complete the following steps:

• Login to the WebFile system.• On the Main Menu, select View Authorized Users.• In the Action column, click on remove. (Important Note: if there is more than one user, you must

remove all other users before you remove your own user name.)• On the Remove Authorized Users page, click the Remove button.

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When you click on the Remove button for the last user, you will no longer be registered for WebFile and youwill be returned to the Login ID page.

Need Assistance

Phone: 701-328-3470

Fax: 701-328-0336

E-mail: Salestax@State.nd.us

Office of State Tax CommissionerSales and Withholding Taxes600 E. Boulevard Ave., Dept 127Bismarck, ND 58505-0599

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