§ 4002. 1st retail sale; uses, etc. treated as sales; determination of price
(a)
1st retail sale
For purposes of this subchapter, the term “1st retail sale” means the 1st sale, for a purpose other than resale, after manufacture, production, or importation.
(b)
Use treated as sale
(1)
In general
If any person uses a passenger vehicle (including any use after importation) before the 1st retail sale of such vehicle, then such person shall be liable for tax under this subchapter in the same manner as if such vehicle were sold at retail by him.
(2)
Exemption for further manufacture
Paragraph (1) shall not apply to use of a vehicle as material in the manufacture or production of, or as a component part of, another vehicle taxable under this subchapter to be manufactured or produced by him.
(3)
Exemption for demonstration use
Paragraph (1) shall not apply to any use of a passenger vehicle as a demonstrator.
(c)
Leases considered as sales
For purposes of this subchapter—
(1)
In general
Except as otherwise provided in this subsection, the lease of a vehicle (including any renewal or any extension of a lease or any subsequent lease of such vehicle) by any person shall be considered a sale of such vehicle at retail.
(2)
Special rules for long-term leases
(A)
Tax not imposed on sale for leasing in a qualified lease
The sale of a passenger vehicle to a person engaged in a passenger vehicle leasing or rental trade or business for leasing by such person in a long-term lease shall not be treated as the 1st retail sale of such vehicle.
(B)
Long-term lease
For purposes of subparagraph (A), the term “long-term lease” means any long-term lease (as defined in section
4052).
(d)
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 passenger vehicle in condition ready for use,