U.S Code last checked for updates: May 19, 2024
All TitlesTitle 26Subtitle DChapter 31Subchapter C
§ 4052.
Definitions and special rules
(a)
First retail sale
For purposes of this subchapter—
(1)
In general
(2)
Leases considered as sales
(3)
Use treated as sale
(A)
In general
(B)
Exemption for use in further manufacture
(C)
Computation of tax
(b)
Determination of price
(1)
In general
In 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 length
(3)
Long-term lease
(A)
In general
In 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 percentage
(C)
Exceptions under regulations
(4)
Special rule where tax paid by manufacturer, producer, or importer
(A)
In general
In 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 person
For purposes of this paragraph—
(i)
In general
(ii)
Exception for retail establishment
(c)
Certain combinations not treated as manufacture
(1)
In general
(2)
Items
(d)
Certain other rules made applicable
(e)
Long-term lease
(f)
Certain repairs and modifications not treated as manufacture
(1)
In general
(2)
Exception
(g)
Regulations
(Added Pub. L. 97–424, title V, § 512(b)(1), Jan. 6, 1983, 96 Stat. 2175; amended Pub. L. 98–369, div. A, title VII, §§ 731, 735(b)(2), July 18, 1984, 98 Stat. 976, 981; Pub. L. 100–17, title V, §§ 505(a)–(c), 506(a), Apr. 2, 1987, 101 Stat. 258, 259; Pub. L. 100–647, title VI, § 6111(a), Nov. 10, 1988, 102 Stat. 3713; Pub. L. 105–34, title XIV, §§ 1402(b), 1434(a), (b), Aug. 5, 1997, 111 Stat. 1046, 1052; Pub. L. 105–206, title VI, § 6014(c), July 22, 1998, 112 Stat. 820.)
cite as: 26 USC 4052
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