26 U.S.C. § 4003
Section 4003 · Special rules
Current version, with additions and removals from the August 10, 1993 version.
Under regulations prescribed by the Secretary—
Under regulations prescribed by the Secretary—
(1) In general
(1) In general
Except as provided in paragraph (2), if—
Except as provided in paragraph (2), if—
(B) such installation is not later than the date 6 months after the date the vehicle was 1st placed in service,
(B) such installation is not later than the date 6 months after the date the vehicle was 1st placed in service,
then there is hereby imposed on such installation a tax equal to 10 percent of the price of such part or accessory and its installation.
then there is hereby imposed on such installation a tax equal to 10 percent of the price of such part or accessory and its installation.
(2) Limitation
(2) Limitation
The tax imposed by paragraph (1) on the installation of any part or accessory shall not exceed 10 percent of the excess (if any) of—
The tax imposed by paragraph (1) on the installation of any part or accessory shall not exceed 10 percent of the excess (if any) of—
(A) the sum of—
(A) the sum of—
(i) the price of such part or accessory and its installation,
(i) the price of such part or accessory and its installation,
(ii) the aggregate price of the parts and accessories (and their installation) installed before such part or accessory, plus
(ii) the aggregate price of the parts and accessories (and their installation) installed before such part or accessory, plus
(iii) the price for which the passenger vehicle was sold, over
(iii) the price for which the passenger vehicle was sold, over
(B) $30,000.
(B) the appropriate applicable amount as determined under section 4001(a)(2).
(3) Exceptions
(3) Exceptions
Paragraph (1) shall not apply if—
Paragraph (1) shall not apply if—
(A) the part or accessory installed is a replacement part or accessory,
(A) the part or accessory installed is a replacement part or accessory,
(B) the part or accessory is installed to enable or assist an individual with a disability to operate the vehicle, or to enter or exit the vehicle, by compensating for the effect of such disability, or
(B) the part or accessory is installed to enable or assist an individual with a disability to operate the vehicle, or to enter or exit the vehicle, by compensating for the effect of such disability, or
The price of any part or accessory (and its installation) to which paragraph (1) does not apply by reason of this paragraph shall not be taken into account under paragraph (2)(A).
The price of any part or accessory (and its installation) to which paragraph (1) does not apply by reason of this paragraph shall not be taken into account under paragraph (2)(A).
(4) Installers secondarily liable for tax
(4) Installers secondarily liable for tax
The owners of the trade or business installing the parts or accessories shall be secondarily liable for the tax imposed by this subsection.
The owners of the trade or business installing the parts or accessories shall be secondarily liable for the tax imposed by this subsection.
(1) In general
(1) In general
If—
If—
(A) no tax was imposed under this subchapter on the 1st retail sale of any passenger vehicle by reason of its exempt use, and
(A) no tax was imposed under this subchapter on the 1st retail sale of any passenger vehicle by reason of its exempt use, and
(B) within 2 years after the date of such 1st retail sale, such vehicle is resold by the purchaser or such purchaser makes a substantial nonexempt use of such vehicle,
(B) within 2 years after the date of such 1st retail sale, such vehicle is resold by the purchaser or such purchaser makes a substantial nonexempt use of such vehicle,
then such sale or use of such vehicle by such purchaser shall be treated as the 1st retail sale of such vehicle for a price equal to its fair market value at the time of such sale or use.
then such sale or use of such vehicle by such purchaser shall be treated as the 1st retail sale of such vehicle for a price equal to its fair market value at the time of such sale or use.
(2) Exempt use
(2) Exempt use
For purposes of this subsection, the term “exempt use” means any use of a vehicle if the 1st retail sale of such vehicle is not taxable under this subchapter by reason of such use.
For purposes of this subsection, the term “exempt use” means any use of a vehicle if the 1st retail sale of such vehicle is not taxable under this subchapter by reason of such use.
Parts and accessories sold on, in connection with, or with the sale of any passenger vehicle shall be treated as part of the vehicle.
Parts and accessories sold on, in connection with, or with the sale of any passenger vehicle shall be treated as part of the vehicle.
In the case of a contract, sale, or arrangement described in paragraph (2), (3), or (4) of section 4216(c), rules similar to the rules of section 4217(e)(2) shall apply for purposes of this subchapter.
In the case of a contract, sale, or arrangement described in paragraph (2), (3), or (4) of section 4216(c), rules similar to the rules of section 4217(e)(2) shall apply for purposes of this subchapter.