USC Subchapter C

in effect

26 U.S.C. § 4051 Imposition of tax on heavy trucks and trailers sold at retail

(a) Imposition of tax(1) In generalThere is hereby imposed on the first retail sale of the following articles (including in each case parts or accessories sold on or in connection therewith or with the sale thereof) a tax of 12 percent of the amount for which the article is so sold:(A) Automobile truck chassis. (B) Automobile truck bodies. (C) Truck trailer and semitrailer chassis. (D) Truck trailer and semitrailer bodies. (E) Tractors of the kind chiefly used for highway transportation in combination with a trailer or semitrailer. (2) Exclusion for trucks weighing 33,000 pounds or lessThe tax imposed by paragraph (1) shall not apply to automobile truck chassis and automobile truck bodies, suitable for use with a vehicle which has a gross vehicle weight of 33,000 pounds or less (as determined under regulations prescribed by the Secretary). (3) Exclusion for trailers weighing 26,000 pounds or lessThe tax imposed by paragraph (1) shall not apply to truck trailer and semitrailer chassis and bodies, suitable for use with a trailer or semitrailer which has a gross vehicle weight of 26,000 pounds or less (as determined under regulations prescribed by the Secretary). (4) Exclusion for tractors weighing 19,500 pounds or lessThe tax imposed by paragraph (1) shall not apply to tractors of the kind chiefly used for highway transportation in combination with a trailer or semitrailer if—(A) such tractor has a gross vehicle weight of 19,500 pounds or less (as determined by the Secretary), and (B) such tractor, in combination with a trailer or semitrailer, has a gross combined weight of 33,000 pounds or less (as determined by the Secretary). (5) Sale of trucks, etc., treated as sale of chassis and bodyFor purposes of this subsection, a sale of an automobile truck or truck trailer or semitrailer shall be considered to be a sale of a chassis and of a body described in paragraph (1). (b) Separate purchase of truck or trailer and parts and accessories thereforUnder regulations prescribed by the Secretary—(1) In generalIf—(A) the owner, lessee, or operator of any vehicle which contains an article taxable under subsection (a) installs (or causes to be installed) any part or accessory on such vehicle, and (B) such installation is not later than the date 6 months after the date such vehicle (as it contains such article) was first placed in service, then there is hereby imposed on such installation a tax equal to 12 percent of the price of such part or accessory and its installation. (2) ExceptionsParagraph (1) shall not apply if—(A) the part or accessory installed is a replacement part or accessory, or (B) the aggregate price of the parts and accessories (and their installation) described in paragraph (1) with respect to any vehicle does not exceed $1,000 (or such other amount or amounts as the Secretary may by regulations prescribe). (3) Installers secondarily liable for taxThe owners of the trade or business installing the parts or accessories shall be secondarily liable for the tax imposed by paragraph (1). (c) TerminationOn and after October 1, 2028, the taxes imposed by this section shall not apply. (d) Credit against tax for tire taxIf—(1) tires are sold on or in connection with the sale of any article, and (2) tax is imposed by this subchapter on the sale of such tires, there shall be allowed as a credit against the tax imposed by this subchapter an amount equal to the tax (if any) imposed by section 4071 on such tires.

26 U.S.C. § 4052 Definitions and special rules

(a) First retail saleFor purposes of this subchapter—(1) In generalThe term “first retail sale” means the first sale, for a purpose other than for resale or leasing in a long-term lease, after production, manufacture, or importation. (2) Leases considered as salesRules similar to the rules of section 4217 shall apply. (3) Use treated as sale(A) In generalIf any person uses an article taxable under section 4051 before the first retail sale of such article, then such person shall be liable for tax under section 4051 in the same manner as if such article were sold at retail by him. (B) Exemption for use in further manufactureSubparagraph (A) shall not apply to use of an article as material in the manufacture or production of, or as a component part of, another article to be manufactured or produced by him. (C) Computation of taxIn the case of any person made liable for tax by subparagraph (A), the tax shall be computed on the price at which similar articles are sold at retail in the ordinary course of trade, as determined by the Secretary. (b) Determination of price(1) In generalIn determining price for purposes of this subchapter—(A) there shall be included any charge incident to placing the article in condition ready for use, (B) there shall be excluded—(i) the amount of the tax imposed by this subchapter, (ii) if stated as a separate charge, the amount of any retail sales tax imposed by any State or political subdivision thereof or the District of Columbia, whether the liability for such tax is imposed on the vendor or vendee, and (iii) the value of any component of such article if—(I) such component is furnished by the first user of such article, and (II) such component has been used before such furnishing, and (C) the price shall be determined without regard to any trade-in. (2) Sales not at arm’s lengthIn the case of any article sold (otherwise than through an arm’s-length transaction) at less than the fair market price, the tax under this subchapter shall be computed on the price for which similar articles are sold at retail in the ordinary course of trade, as determined by the Secretary. (3) Long-term lease(A) In generalIn the case of any long-term lease of an article which is treated as the first retail sale of such article, the tax under this subchapter shall be computed on a price equal to—(i) the sum of—(I) the price (determined under this subchapter but without regard to paragraph (4)) at which such article was sold to the lessor, and (II) the cost of any parts and accessories installed by the lessor on such article before the first use by the lessee or leased in connection with such long-term lease, plus (ii) an amount equal to the presumed markup percentage of the sum described in clause (i). (B) Presumed markup percentageFor purposes of subparagraph (A), the term “presumed markup percentage” means the average markup percentage of retailers of articles of the type involved, as determined by the Secretary. (C) Exceptions under regulationsTo the extent provided in regulations prescribed by the Secretary, subparagraph (A) shall not apply to specified types of leases where its application is not necessary to carry out the purposes of this subsection. (4) Special rule where tax paid by manufacturer, producer, or importer(A) In generalIn any case where the manufacturer, producer, or importer of any article (or a related person) is liable for tax imposed by this subchapter with respect to such article, the tax under this subchapter shall be computed on a price equal to the sum of—(i) the price which would (but for this paragraph) be determined under this subchapter, plus (ii) the product of the price referred to in clause (i) and the presumed markup percentage determined under paragraph (3)(B). (B) Related personFor purposes of this paragraph—(i) In generalExcept as provided in clause (ii), the term “related person” means any person who is a member of the same controlled group (within the meaning of section 5061(e)(3)) as the manufacturer, producer, or importer. (ii) Exception for retail establishmentTo the extent provided in regulations prescribed by the Secretary, a person shall not be treated as a related person with respect to the sale of any article if such article is sold through a permanent retail establishment in the normal course of the trade or business of being a retailer. (c) Certain combinations not treated as manufacture(1) In generalFor purposes of this subchapter (other than subsection (a)(3)(B)), a person shall not be treated as engaged in the manufacture of any article by reason of merely combining such article with any item listed in paragraph (2). (2) ItemsThe items listed in this paragraph are any coupling device (including any fifth wheel), wrecker crane, loading and unloading equipment (including any crane, hoist, winch, or power liftgate), aerial ladder or tower, snow and ice control equipment, earthmoving, excavation and construction equipment, spreader, sleeper cab, cab shield, or wood or metal floor. (d) Certain other rules made applicableUnder regulations prescribed by the Secretary, rules similar to the rules of subsections (c) and (d) of section 4216 (relating to partial payments) shall apply for purposes of this subchapter. (e) Long-term leaseFor purposes of this section, the term “long-term lease” means any lease with a term of 1 year or more. In determining a lease term for purposes of the preceding sentence, the rules of section 168(i)(3)(A) shall apply. (f) Certain repairs and modifications not treated as manufacture(1) In generalAn article described in section 4051(a)(1) shall not be treated as manufactured or produced solely by reason of repairs or modifications to the article (including any modification which changes the transportation function of the article or restores a wrecked article to a functional condition) if the cost of such repairs and modifications does not exceed 75 percent of the retail price of a comparable new article. (2) ExceptionParagraph (1) shall not apply if the article (as repaired or modified) would, if new, be taxable under section 4051 and the article when new was not taxable under such section or the corresponding provision of prior law. (g) RegulationsThe Secretary shall prescribe regulations which permit, in lieu of any other certification, persons who are purchasing articles taxable under this subchapter for resale or leasing in a long-term lease to execute a statement (made under penalties of perjury) on the sale invoice that such sale is for resale. The Secretary shall not impose any registration requirement as a condition of using such procedure.

26 U.S.C. § 4053 Exemptions

No tax shall be imposed by section 4051 on any of the following articles: (1) Camper coaches bodies for self-propelled mobile homesAny article designed—(A) to be mounted or placed on automobile trucks, automobile truck chassis, or automobile chassis, and (B) to be used primarily as living quarters or camping accommodations. (2) Feed, seed, and fertilizer equipmentAny body primarily designed—(A) to process or prepare seed, feed, or fertilizer for use on farms, (B) to haul feed, seed, or fertilizer to and on farms, (C) to spread feed, seed, or fertilizer on farms, (D) to load or unload feed, seed, or fertilizer on farms, or (E) for any combination of the foregoing. (3) House trailersAny house trailer. (4) Ambulances, hearses, etc.Any ambulance, hearse, or combination ambulance-hearse. (5) Concrete mixersAny article designed—(A) to be placed or mounted on an automobile truck chassis or truck trailer or semitrailer chassis, and (B) to be used to process or prepare concrete. (6) Trash containers, etc.Any box, container, receptacle, bin or other similar article—(A) which is designed to be used as a trash container and is not designed for the transportation of freight other than trash, and (B) which is not designed to be permanently mounted on or permanently affixed to an automobile truck chassis or body. (7) Rail trailers and rail vansAny chassis or body of a trailer or semitrailer which is designed for use both as a highway vehicle and a railroad car. For purposes of the preceding sentence, piggy-back trailer or semitrailer shall not be treated as designed for use as a railroad car. (8) Mobile machineryAny vehicle which consists of a chassis—(A) to which there has been permanently mounted (by welding, bolting, riveting, or other means) machinery or equipment to perform a construction, manufacturing, processing, farming, mining, drilling, timbering, or similar operation if the operation of the machinery or equipment is unrelated to transportation on or off the public highways, (B) which has been specially designed to serve only as a mobile carriage and mount (and a power source, where applicable) for the particular machinery or equipment involved, whether or not such machinery or equipment is in operation, and (C) which, by reason of such special design, could not, without substantial structural modification, be used as a component of a vehicle designed to perform a function of transporting any load other than that particular machinery or equipment or similar machinery or equipment requiring such a specially designed chassis. (9) Idling reduction deviceAny device or system of devices which—(A) is designed to provide to a vehicle those services (such as heat, air conditioning, or electricity) that would otherwise require the operation of the main drive engine while the vehicle is temporarily parked or remains stationary using one or more devices affixed to a tractor, and (B) is determined by the Administrator of the Environmental Protection Agency, in consultation with the Secretary of Energy and the Secretary of Transportation, to reduce idling of such vehicle at a motor vehicle rest stop or other location where such vehicles are temporarily parked or remain stationary. (10) Advanced insulationAny insulation that has an R value of not less than R35 per inch.