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Sec. 4003. - Special rules
(a) Separate
purchase of vehicle and parts and accessories therefor
Under regulations prescribed by the Secretary
-
Except as provided in paragraph (2), if -
the owner, lessee, or operator of any
passenger vehicle installs (or causes to be installed) any part or
accessory (other than property described in section 4001(a)(2)(B))
on such vehicle, and
(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.
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 -
(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
(iii)
the price for which the passenger vehicle was
sold, over
(B)
the appropriate applicable amount as
determined under section 4001(a)(2).
Paragraph (1) shall not apply if -
(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
(C)
the aggregate price of the parts and
accessories (and their installation) described in paragraph (1) with
respect to the vehicle does not exceed $1,000 (or such other amount
or amounts as the Secretary may by regulation prescribe).
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
The owners of the trade or business
installing the parts or accessories shall be secondarily liable for
the tax imposed by this subsection.
(b) Imposition
of tax on sales, etc., within 2 years of vehicles purchased tax-free
(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,
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.
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.
(c) Parts
and accessories sold with taxable passenger 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.
(d) Partial
payments, etc.
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
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