§ 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 or leasing in a long-term lease, after production, manufacture, or importation.
(b)
Determination of price
(1)
In general
In determining price for purposes of this subchapter—
(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.
(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—
(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—
(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.
(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.
(d)
Certain other rules made applicable
Under regulations prescribed by the Secretary, rules similar to the rules of subsections (c) and (d) of section
4216 (relating to partial payments) shall apply for purposes of this subchapter.
(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 such section or the corresponding provision of prior law.
(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.