§ 44-18-20 - Use tax imposed.
SECTION 44-18-20
§ 44-18-20 Use tax imposed. – (a) An excise tax is imposed on the storage, use, or other consumption in thisstate of tangible personal property, including a motor vehicle, a boat, anairplane, or a trailer, purchased from any retailer at the rate of six percent(6%) of the sale price of the property.
(b) An excise tax is imposed on the storage, use, or otherconsumption in this state of a motor vehicle, a boat, an airplane, or a trailerpurchased from other than a licensed motor vehicle dealer or other than aretailer of boats, airplanes, or trailers respectively, at the rate of sixpercent (6%) of the sale price of the motor vehicle, boat, airplane, or trailer.
(c) The word "trailer" as used in this section and in §44-18-21 means and includes those defined in § 31-1-5(a) – (e) andalso includes boat trailers, camping trailers, house trailers, and mobile homes.
(d) Notwithstanding the provisions contained in this sectionand in § 44-18-21 relating to the imposition of a use tax and liabilityfor this tax on certain casual sales, no tax is payable in any casual sale:
(1) When the transferee or purchaser is the spouse, mother,father, brother, sister, or child of the transferor or seller;
(2) When the transfer or sale is made in connection with theorganization, reorganization, dissolution, or partial liquidation of a businessentity; provided:
(i) The last taxable sale, transfer, or use of the articlebeing transferred or sold was subjected to a tax imposed by this chapter;
(ii) The transferee is the business entity referred to or isa stockholder, owner, member, or partner; and
(iii) Any gain or loss to the transferor is not recognizedfor income tax purposes under the provisions of the federal income tax law andtreasury regulations and rulings issued thereunder;
(3) When the sale or transfer is of a trailer, other than acamping trailer, of the type ordinarily used for residential purposes andcommonly known as a house trailer or as a mobile home; or
(4) When the transferee or purchaser is exempt under theprovisions of § 44-18-30 or other general law of this state or special actof the general assembly of this state.
(e) The term "casual" means a sale made by a person otherthan a retailer; provided, that in the case of a sale of a motor vehicle, theterm means a sale made by a person other than a licensed motor vehicle dealeror an auctioneer at an auction sale. In no case is the tax imposed under theprovisions of subsections (a) and (b) of this section on the storage, use, orother consumption in this state of a used motor vehicle less than the productobtained by multiplying the amount of the retail dollar value at the time ofpurchase of the motor vehicle by the applicable tax rate; provided, that wherethe amount of the sale price exceeds the amount of the retail dollar value, thetax is based on the sale price. The tax administrator shall use as his or herguide the retail dollar value as shown in the current issue of any nationallyrecognized used vehicle guide for appraisal purposes in this state. On requestwithin thirty (30) days by the taxpayer after payment of the tax, if the taxadministrator determines that the retail dollar value as stated in thissubsection is inequitable or unreasonable, he or she shall, after affording thetaxpayer reasonable opportunity to be heard, re-determine the tax.
(f) Every person making more than five (5) retail sales oftangible personal property during any twelve (12) month period, including salesmade in the capacity of assignee for the benefit of creditors or receiver ortrustee in bankruptcy, is considered a retailer within the provisions of thischapter.
(g) "Casual sale" includes a sale of tangible personalproperty not held or used by a seller in the course of activities for which theseller is required to hold a seller's permit or permits or would be required tohold a seller's permit or permits if the activities were conducted in thisstate; provided, that the sale is not one of a series of sales sufficient innumber, scope, and character (more than five (5) in any twelve (12) monthperiod) to constitute an activity for which the seller is required to hold aseller's permit or would be required to hold a seller's permit if the activitywere conducted in this state.
(2) Casual sales also include sales made at bazaars, fairs,picnics, or similar events by nonprofit organizations, which are organized forcharitable, educational, civic, religious, social, recreational, fraternal, orliterary purposes during two (2) events not to exceed a total of six (6) daysduration each calendar year. Each event requires the issuance of a permit bythe division of taxation. Where sales are made at events by a vendor, whichholds a sales tax permit and is not a nonprofit organization, the sales are inthe regular course of business and are not exempt as casual sales.
(h) The use tax imposed under this section for the periodcommencing July 1, 1990 is at the rate of seven percent (7%).