§ 4052. Definitions and special rules

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1. 1983

   Surface Transportation Assistance Act of 1982

   Pub. L. 97–424 title V § 512(b)(1) · 96 Stat. 2097

   Enacted · 26 U.S.C. § 4052

   Added Pub. L. 97–424, title V, § 512(b)(1), Jan. 6, 1983, 96 Stat. 2175

   Source evidence

   Code source credit
   Added Pub. L. 97–424, title V, § 512(b)(1), Jan. 6, 1983, 96 Stat. 2175

   Enacted provision · exact public law section
   (1) In general.— Chapter 31 is amended by adding at the end thereof the following new subchapter: “Subchapter B— Heavy Trucks and Trailers “Sec. 4051. Imposition of tax on heavy trucks and trailers sold at retail. “Sec. 4052. Definitions and special rules. “Sec. 4053. Exemptions. “SEC. 4051. IMPOSITION OF TAX ON HEAVY TRUCKS AND TRAILERS SOLD AT RETAIL. “(a) Imposition of Tax.— “(1) In general.— There 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 less.— The 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 less.— The 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) Sale of trucks, etc., treated as sale of chassis and body.— For 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 Therefor.— Under regulations prescribed by the Secretary— “(1) In general.— If— “(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) Exceptions.— Paragraph (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 $200 (or such other amount or amounts as the Secretary may by regulations prescribe). “(3) Installers secondarily liable for tax.— In addition to the owner, lessee, or operator of the vehicle, the owner of the trade or business installing the part or accessory shall be liable for the tax imposed by paragraph (1). “(c) Termination.— On and after October 1, 1988, the taxes imposed by this section shall not apply. “(d) Transitional Rule.— In the case of any article taxable under subsection (a) on which tax was imposed under section 4061(a), subsection (a) shall be applied by substituting ‘2 percent’ for ‘12 percent’. “SEC. 4052. DEFINITIONS AND SPECIAL RULES. “(a) First Retail Sale.— For purposes of this subchapter— “(1) In general.— The term ‘first retail sale’ means the first sale, for a purpose other than for resale, after manufacture, production, or importation. “(2) Leases considered as sales.— Rules similar to the rules of section 4217 shall apply. “(3) Use treated as sale.— “(A) In general.— If 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 manufacture.— Subparagraph (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 tax.— In 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 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 fair market value (including any tax imposed by section 4071) at retail of any tires (not including any metal rim or rim base), and “(C) the price shall be determined without regard to any trade-in. “(2) Sales not at arm’s length.— In 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. “(c) Certain Combinations Not Treated as Manufacture.— For 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 equipment or other item listed in section 4063(d). “(d) Certain Other Rules Made Applicable.— Under regulations prescribed by the Secretary, rules similar to the rules of— “(1) subsections (c) and (d) of section 4216 (relating to partial payments), and “(2) section 4222 (relating to registration), shall apply for purposes of this subchapter. “SEC 4053. EXEMPTIONS. “(a) Exemption of Specified Articles.— No tax shall be imposed under section 4051 on any article specified in subsection (a) of section 4063. “(b) Certain Exemptions Made Applicable.— The exemptions irovided by section 4221(a) are hereby extended to the tax imposed y section 4051.”

2. 1984

   Tax Reform Act of 1984

   Pub. L. 98–369 § 731 · 98 Stat. 494

   Added · 26 U.S.C. § 4052(b)(1)(B)(iv)

   Pub. L. 98–369, § 731, added cl. (iv)

   Source evidence

   Code amendment note
   Subsec. (b)(1)(B)(iv). Pub. L. 98–369, § 731, added cl. (iv).

   Enacted provision · exact public law section
   SEC. 731. VALUE OF USED COMPONENTS FURNISHED BY FIRST USER NOT TAKEN INTO ACCOUNT IN DETERMINING PRICE. 26 USC 4052 note. Subparagraph (B) of section 4052(b)(1) (relating to determination of price) is amended by striking out “and” at the end of clause (ii) and by inserting after clause (iii) the following new clause: “(iv) 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”.

3. 1984

   Tax Reform Act of 1984

   Pub. L. 98–369 § 735(b)(2) · 98 Stat. 494

   1. Changed · 26 U.S.C. § 4052(c)

      Pub. L. 98–369, § 735(b)(2), in amending subsec. (c) generally

   2. Substituted · 26 U.S.C. § 4052(c)

      Pub. L. 98–369, § 735(b)(2), in designated existing provisions as par. (1), in par. (1) as so designated substituted “by reason of merely combining such article with any article listed in paragraph (2)” for “with any equipment or other item listed in section 4063(d)”

   3. Added · 26 U.S.C. § 4052(c)

      Pub. L. 98–369, § 735(b)(2), in added par. (2)

   Source evidence

   Code amendment note
   Subsec. (c). Pub. L. 98–369, § 735(b)(2), in amending subsec. (c) generally, designated existing provisions as par. (1), in par. (1) as so designated substituted “by reason of merely combining such article with any article listed in paragraph (2)” for “with any equipment or other item listed in section 4063(d)”, and added par. (2).

   Enacted provision · exact public law section
   (2) Certain combinations not treated as manufacture.— Subsection (c) of section 4052 (relating to definitions and special 26 USC 4052. rules) is amended to read as follows: “(c) Certain Combinations Not Treated as Manufacture.— “(1) In general.— For 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) Items.— The 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.”

4. 1987

   Highway Revenue Act of 1987

   Pub. L. 100–17 § 505(a) · 101 Stat. 132

   Inserted · 26 U.S.C. § 4052(a)(1)

   Pub. L. 100–17, § 505(a), inserted “or leasing in a long-term lease” after “resale”

   Source evidence

   Code amendment note
   Subsec. (a)(1). Pub. L. 100–17, § 505(a), inserted “or leasing in a long-term lease” after “resale”.

   Enacted provision · exact public law section
   (a) Initial Tax Not Imposed on Sale to Long-Term Lessors.— Paragraph (1) of section 4052(a) of the Internal Revenue Code of 1986 26 USC 4052. (defining first retail sale) is amended by striking out “other than for resale” and inserting in lieu thereof “other than for resale or leasing in a long-term lease”.

5. 1987

   Highway Revenue Act of 1987

   Pub. L. 100–17 § 505(b) · 101 Stat. 132

   Added · 26 U.S.C. § 4052(b)(3)

   Pub. L. 100–17, § 505(b), added par. (3)

   Source evidence

   Code amendment note
   Subsec. (b)(3). Pub. L. 100–17, § 505(b), added par. (3).

   Enacted provision · exact public law section
   (b) Constructive Sales Price in the Case of Long-Term Lease.— Subsection (b) of section 4052 of such Code (defining price) is amended by adding at the end thereof the following new paragraph: “(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.— For 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 regulations.— To 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.”

6. 1987

   Highway Revenue Act of 1987

   Pub. L. 100–17 § 506(a) · 101 Stat. 132

   Added · 26 U.S.C. § 4052(b)(4)

   Pub. L. 100–17, § 506(a), added par. (4)

   Source evidence

   Code amendment note
   Subsec. (b)(4). Pub. L. 100–17, § 506(a), added par. (4).

   Enacted provision · exact public law section
   (a) In General.— Subsection (b) of section 4052 of the Internal Revenue Code of 1986 (defining price) is amended by adding at the 26 USC 4052. end thereof the following new paragraph: “(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.— Except 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 establishment.— To 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.”

7. 1987

   Highway Revenue Act of 1987

   Pub. L. 100–17 § 505(c) · 101 Stat. 132

   Added · 26 U.S.C. § 4052(f)

   Pub. L. 100–17, § 505(c), added subsec. (f)

   Source evidence

   Code amendment note
   Subsec. (f). Pub. L. 100–17, § 505(c), added subsec. (f).

   Enacted provision · exact public law section
   (c) Long-Term Lease Defined.— Section 4052 of such Code is 26 USC 4052. amended by adding at the end thereof the following new subsection: “(f) Long-Term Lease.— For 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.”

8. 1988

   Technical and Miscellaneous Revenue Act of 1988

   Pub. L. 100–647 title VI § 6111(a) · 102 Stat. 3342

   Substituted · 26 U.S.C. § 4052(a)(1)

   Pub. L. 100–647 substituted “production, manufacture” for “manufacture, production”

   Source evidence

   Code amendment note
   Subsec. (a)(1). Pub. L. 100–647 substituted “production, manufacture” for “manufacture, production”.

   Enacted provision · exact public law section
   (a) In General.— Paragraph (1) of section 4052(a) of the 1986 Code (defining first retail sale) is amended by striking out “manufacture, production” and inserting in lieu thereof “production, manufacture”.

9. 1997

   Pub. L. 105–34 § 1402(b) · 111 Stat. 788

   1. Inserted · 26 U.S.C. § 4052(b)(1)(B)(ii)(iv)

      Pub. L. 105–34, § 1402(b), inserted “and” at end of cl. (ii)

   2. Redesignated · 26 U.S.C. § 4052(b)(1)(B)(ii)(iv)

      Pub. L. 105–34, § 1402(b), redesignated cl. (iv) as (iii)

   3. Struck · 26 U.S.C. § 4052(b)(1)(B)(ii)(iv)

      Pub. L. 105–34, § 1402(b), struck out former cl. (iii) which read as follows: “the fair market value (including any tax imposed by section 4071) at retail of any tires (not including any metal rim or rim base), and”

   Source evidence

   Code amendment note
   Subsec. (b)(1)(B)(ii) to (iv). Pub. L. 105–34, § 1402(b), inserted “and” at end of cl. (ii), redesignated cl. (iv) as (iii), and struck out former cl. (iii) which read as follows: “the fair market value (including any tax imposed by section 4071) at retail of any tires (not including any metal rim or rim base), and”.

   Enacted provision · exact public law section
   (b) Conforming Amendment.— Subparagraph (B) of section 4052(b)(1) is amended by striking clause (iii), by adding “and” at the end of clause (ii), and by redesignating clause (iv) as clause (iii).

   Effective date note
   Amendment by Pub. L. 105–206 effective, except as otherwise provided, as if included in the provisions of the Taxpayer Relief Act of 1997, Pub. L. 105–34, to which such amendment relates, see section 6024 of Pub. L. 105–206, set out as a note under section 1 of this title.

10. 1997

    Pub. L. 105–34 § 1434(b)(1) · 111 Stat. 788

    Substituted · 26 U.S.C. § 4052(d)

    Pub. L. 105–34, § 1434(b)(1), substituted “rules of subsections (c) and (d) of section 4216 (relating to partial payments) shall apply” for “rules of—

    Source evidence

    Code amendment note
    Subsec. (d). Pub. L. 105–34, § 1434(b)(1), substituted “rules of subsections (c) and (d) of section 4216 (relating to partial payments) shall apply” for “rules of—

    “(1) subsections (c) and (d) of section 4216 (relating to partial payments), and “(2) section 4222 (relating to registration), shall apply”.

    Enacted provision · exact public law section
    (1) Repeal of registration requirement.— Subsection (d) of section 4052 is amended by striking “rules of—” and all that follows through “shall apply” and inserting “rules of subsections (c) and (d) of section 4216 (relating to partial payments) shall apply”.

    Effective date note
    Amendment by Pub. L. 105–206 effective, except as otherwise provided, as if included in the provisions of the Taxpayer Relief Act of 1997, Pub. L. 105–34, to which such amendment relates, see section 6024 of Pub. L. 105–206, set out as a note under section 1 of this title.

11. 1997

    Pub. L. 105–34 § 1434(a) · 111 Stat. 788

    Redesignated · 26 U.S.C. § 4052(e)

    Pub. L. 105–34, § 1434(a), redesignated subsec. (f) as (e)

    Source evidence

    Code amendment note
    Subsec. (e). Pub. L. 105–34, § 1434(a), redesignated subsec. (f) as (e).

    Enacted provision · exact public law section
    (a) Certain Repairs and Modifications Not Treated as Manufacture.— Section 4052 is amended by redesignating the subsection defining a long-term lease as subsection (e) and by adding at the end the following new subsection: “(f) Certain Repairs and Modifications Not Treated as Manufacture.— “(1) In general.— An 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) Exception.— Paragraph (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 this section or the corresponding provision of prior law.”.

    Effective date note
    Amendment by Pub. L. 105–206 effective, except as otherwise provided, as if included in the provisions of the Taxpayer Relief Act of 1997, Pub. L. 105–34, to which such amendment relates, see section 6024 of Pub. L. 105–206, set out as a note under section 1 of this title.

12. 1997

    Pub. L. 105–34 § 1434(a) · 111 Stat. 788

    Redesignated · 26 U.S.C. § 4052(f)

    Pub. L. 105–34, § 1434(a), added subsec. (f). Former subsec. (f) redesignated (e)

    Source evidence

    Code amendment note
    Subsec. (f). Pub. L. 105–34, § 1434(a), added subsec. (f). Former subsec. (f) redesignated (e).

    Enacted provision · exact public law section
    (a) Certain Repairs and Modifications Not Treated as Manufacture.— Section 4052 is amended by redesignating the subsection defining a long-term lease as subsection (e) and by adding at the end the following new subsection: “(f) Certain Repairs and Modifications Not Treated as Manufacture.— “(1) In general.— An 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) Exception.— Paragraph (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 this section or the corresponding provision of prior law.”.

    Effective date note
    Amendment by Pub. L. 105–206 effective, except as otherwise provided, as if included in the provisions of the Taxpayer Relief Act of 1997, Pub. L. 105–34, to which such amendment relates, see section 6024 of Pub. L. 105–206, set out as a note under section 1 of this title.

13. 1997

    Pub. L. 105–34 § 1434(b)(2) · 111 Stat. 788

    Added · 26 U.S.C. § 4052(g)

    Pub. L. 105–34, § 1434(b)(2), added subsec. (g)

    Source evidence

    Code amendment note
    Subsec. (g). Pub. L. 105–34, § 1434(b)(2), added subsec. (g).

    Enacted provision · exact public law section
    (2) Requirement to modify regulations.— Section 4052 is amended by adding at the end the following new subsection: “(g) Regulations.— The 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.”.

    Effective date note
    Amendment by Pub. L. 105–206 effective, except as otherwise provided, as if included in the provisions of the Taxpayer Relief Act of 1997, Pub. L. 105–34, to which such amendment relates, see section 6024 of Pub. L. 105–206, set out as a note under section 1 of this title.

14. 1998

    Internal Revenue Service Restructuring and Reform Act of 1998

    Pub. L. 105–206 title VI § 6014(c) · 112 Stat. 685

    Substituted · 26 U.S.C. § 4052(f)(2)

    Pub. L. 105–206 substituted “such section” for “this section”

    Source evidence

    Code amendment note
    Subsec. (f)(2). Pub. L. 105–206 substituted “such section” for “this section”.

    Enacted provision · exact public law section
    (c) Amendment Related to Section 1434 of 1997 Act.— Paragraph (2) of section 4052(f) of the 1986 Code is amended by striking “this section” and inserting “such section”.

    Effective date note
    Amendment by Pub. L. 105–206 effective, except as otherwise provided, as if included in the provisions of the Taxpayer Relief Act of 1997, Pub. L. 105–34, to which such amendment relates, see section 6024 of Pub. L. 105–206, set out as a note under section 1 of this title.

18 of 18 references resolved to an enrolled provision