Editor's Note:
Pub. L.
113-295, Div. A, Sec. 221(a)(103)(A), struck Sec.
4001, effective December 19, 2014.
I.R.C. § 4001(a) Imposition Of Tax
I.R.C. § 4001(a)(1) In General —
There is hereby imposed on the 1st retail sale of any
passenger vehicle a tax equal to 10 percent of the price for which
so sold to the extent such price exceeds the applicable amount.
I.R.C. § 4001(a)(2) Applicable Amount
I.R.C. § 4001(a)(2)(A) In General —
Except as provided in subparagraphs (B) and (C), the
applicable amount is $30,000.
I.R.C. § 4001(a)(2)(B) Qualified Clean-Fuel Vehicle Property —
In the case of a passenger vehicle which is propelled
by a fuel which is not a clean-burning fuel and to which is installed
qualified clean-fuel vehicle property (as defined in section 179A(c)(1)(A)) for purposes
of permitting such vehicle to be propelled by a clean-burning fuel,
the applicable amount is equal to the sum of—
I.R.C. § 4001(a)(2)(B)(i) —
the dollar amount in effect under
subparagraph (A), plus
I.R.C. § 4001(a)(2)(B)(ii) —
the increase in the price for which
the passenger vehicle was sold (within the meaning of section 4002) due to the installation
of such property.
I.R.C. § 4001(a)(2)(C) Purpose Built Passenger Vehicle
I.R.C. § 4001(a)(2)(C)(i) In General —
In the case of a purpose built passenger vehicle, the
applicable amount is equal to 150 percent of the dollar amount in
effect under subparagraph (A).
I.R.C. § 4001(a)(2)(C)(ii) Purpose Built Passenger Vehicle —
For purposes of clause (i), the term “purpose
built passenger vehicle” means a passenger vehicle produced
by an original equipment manufacturer and designed so that the vehicle
may be propelled primarily by electricity.
I.R.C. § 4001(b) Passenger Vehicle
I.R.C. § 4001(b)(1) In General —
For purposes of this subchapter, the term “passenger
vehicle” means any 4-wheeled vehicle—
I.R.C. § 4001(b)(1)(A) —
which is manufactured primarily
for use on public streets, roads, and highways, and
I.R.C. § 4001(b)(1)(B) —
which is rated at 6,000 pounds unloaded
gross vehicle weight or less.
I.R.C. § 4001(b)(2) Special Rules
I.R.C. § 4001(b)(2)(A) Trucks And Vans —
In case of a truck or van, paragraph (1)(B) shall be
applied by substituting “gross vehicle weight” for “unloaded
gross vehicle weight”.
I.R.C. § 4001(b)(2)(B) Limousines —
In the case of a limousine, paragraph (1) shall be
applied without regard to subparagraph (B) thereof.
I.R.C. § 4001(c) Exceptions For Taxicabs, Etc. —
The tax imposed by this section shall not apply to
the sale of any passenger vehicle for use by the purchaser exclusively
in the active conduct of a trade or business of transporting persons
or property for compensation or hire.
I.R.C. § 4001(d) Exemption For Law Enforcement Uses, Etc. —
No tax shall be imposed by this section on the sale
of any passenger vehicle—
I.R.C. § 4001(d)(1) —
to the Federal Government, or a
State or local government, for use exclusively in police, firefighting,
search and rescue, or other law enforcement or public safety activities,
or in public works activities, or
I.R.C. § 4001(d)(2) —
to any person for use exclusively
in providing emergency medical services.
I.R.C. § 4001(e) Inflation Adjustment
I.R.C. § 4001(e)(1) In General —
The $30,000 amount in subsection (a) shall be increased
by an amount equal to—
I.R.C. § 4001(e)(1)(A) —
$30,000 multiplied by
I.R.C. § 4001(e)(1)(B) —
the cost-of-living adjustment under
section 1(f)(3) for
the calendar year in which the vehicle is sold, determined by substituting “calendar
year 1990” for “calendar year 1992” in subparagraph
(B) thereof.
I.R.C. § 4001(e)(2) Rounding —
If any amount as adjusted under paragraph (1) is not
a multiple of $2,000, such amount shall be rounded to the next lowest
multiple of $2,000.
I.R.C. § 4001(f) Phasedown —
For sales occurring in calendar years after 1995 and
before 2003, subsection (a)(1) and section 4003(a) shall be applied by
substituting for ‘10 percent’ the percentage, each place it appears,
determined in accordance with the following table:
If the calendar year is: The percentage is: 1996....................................9 percent 1997....................................8 percent 1998....................................7 percent 1999....................................6 percent 2000....................................5 percent 2001....................................4 percent 2002....................................3 percent
I.R.C. § 4001(g) Termination —
The taxes imposed by this section and section 4003 shall not apply to any sale,
use, or installation after December 31, 2002.
(Added by Pub. L. 101-508,
title XI, Sec. 11221(a), Nov. 5, 1990, 104 Stat. 1388-439; amended
by Pub. L. 103-66, Sec. 13161(a),
Aug. 10, 1993; Pub. L. 104-188,
title I, Sec. 1607, 1703(c)(1), Aug. 20, 1996, 110 Stat. 1755; Pub. L. 105-34, title IX, XVI, Sec.
906, 1601(f)(3)(A), 1601(f)(3)(B), Aug. 5, 1997, 111 Stat 788; repealed
by Pub. L. 113-295,
Div. A, title II, Sec. 221(a)(103)(A), Dec. 19, 2014, 128 Stat. 4010.)
BACKGROUND NOTES
Amendments
to Subtitle
1988--Pub. L. 100-418, title I, 1941(b)(3)(A),
Aug. 23, 1988, 102 Stat. 1324, struck out item for chapter 45 “Windfall
profit tax on domestic crude oil”.
1987--Pub. L. 100-203, title X, 10712(c)(8),
Dec. 22, 1987, 101 Stat. 1330-467, substituted “and certain other
tax-exempt organizations” for “black lung benefit trusts” in item
for chapter 42.
1986--Pub. L. 99-509, title IX, 9319(d)(2),
Oct. 21, 1986, 100 Stat. 2012, added item for chapter 47.
1984--Pub. L. 98-369, div. A, title I,
67(d)(2), July 18, 1984, 98 Stat. 587, added item for chapter 46.
1983--Pub. L. 97-424, title V, 512(b)(2)(B),
Jan. 6, 1983, 96 Stat. 2177, substituted “Retail excise taxes” for
“Special fuels” in item for chapter 31.
1982--Pub. L. 97-248, title III, 310(b)(4)(B),
Sept. 3, 1982, 96 Stat. 598, added item for chapter 39.
1980--Pub. L. 96-510, title II, 211(b),
Dec. 11, 1980, 94 Stat. 2801, added item for chapter 38.
Pub. L. 96-223, 101(a)(2), Apr. 2,
1980, 94 Stat. 250, added item for chapter 45.
1978--Pub. L. 95-227, 4(c)(2)(C), Feb.
10, 1978, 92 Stat. 22, inserted “,black lung benefit trusts” after
“foundations” in item for chapter 42.
1976--Pub. L. 94-455, title XIII, 1307(d)(3)(A),
title XVI, 1605(c), title XIX, 1904(b)(7)(E), (10)(G), 1952(n)(6),
Oct. 4, 1976, 90 Stat. 1728, 1755, 1815, 1818, 1846, substituted “41.
Public charities” for “41. Interest equalization tax” added item for
chapter 44 and struck out items for chapters “38. Import taxes” and
“39. Regulatory taxes”.
1974--Pub. L. 93-406, title II, 1016(b)(2),
Sept. 2, 1974, 88 Stat. 932, added item for chapter 43.
1969--Pub. L. 91-172, title I, 101(j)(59),
Dec. 30, 1969, 83 Stat. 532, added item for chapter 42.
1964--Pub. L. 88-563, 2(b), Sept. 2, 1964,
78 Stat. 841, added item for chapter 41.
Prior
Provisions
The
provisions of a prior chapter 31, Miscellaneous Excise Taxes, were
set out as:
Subchapter (A), Jewelry and related items, comprising
sections 4001 to 4003;
Subchapter (B), Furs, comprising sections 4011
to 4013;
Subchapter (C), Toilet preparations, comprising
sections 4021 and 4022;
Subchapter (D), Luggage, handbags, etc., comprising
section 4031;
Subchapter (E), Special fuels, comprising sections
4041 and 4042; and
Subchapter (F), Special provisions applicable to
retailers tax, comprising sections 4051 to 4058.
The
headings for subchs. (A) to (D) were struck out by section 101(b)(1)
and the listed sections were repealed by section 101(a) of Pub. L. 89-44, title I, June 21, 1965,
79 Stat. 136, the Excise Tax Reduction Act of 1965, applicable with
respect to articles sold on or after June 22, 1965, as provided in
section 701(a) of Pub. L. 89-44,
set out as an Effective Date of 1965 Amendment note under section
4161 of this title.
The
headings for subchs. (E) and (F) were stricken by section 1904(a)(1)(A)
of Pub. L. 94-455,
title XIX, Oct. 4, 1976, 90 Stat. 1810, the Tax Reform Act of 1976.
Sections 4051 to 4053 were repealed by section 101(b)(2) of Pub. L. 89-44, title I, June 21, 1965,
79 Stat. 136, applicable with respect to articles sold on or after
June 22, 1965, as provided in section 701(a) of Pub. L. 89-44, set out as an Effective
Date of 1965 Amendment note under section 4061 of this title; and
sections 4042 and 4054 to 4058 were repealed by section 1904(a)(1)(D)
of Pub. L. 94-455,
title XIX, Oct. 4, 1976, 90 Stat. 1811, effective Feb. 1, 1977, as
provided in section 1904(d) of Pub.
L. 94-455, set out as an Effective Date of 1976 Amendment
note under section 4041 of this title.
The
subject matter of the prior sections was as follows:
A
prior section 4001, acts Aug. 16, 1954, ch. 736, 68A Stat. 473; Sept.
2, 1958, Pub. L. 85-859,
title I, 101, 72 Stat. 1275; Sept. 21, 1959, Pub. L. 86-344, 1(a), 73 Stat. 617,
imposed an excise tax equivalent to 10 percent of selling price upon
jewelry, stones, watches, clocks, case and movements for watches and
clocks, flatware and hollow ware, opera glasses, lorgnettes, marine
glasses, field glasses, and binoculars.
A
prior section 4002, act Aug. 16, 1954, ch. 736, 68A Stat. 473, defined
“articles sold at retail” to include articles sold at auction.
A
prior section 4003, acts Aug. 16, 1954, ch. 736, 68A Stat. 474; Sept.
2, 1958, Pub. L. 85-859,
title I, 102, 72 Stat. 1276, specified exemptions to tax imposed by
section 4001.
A
prior section 4011, act Aug. 16, 1954, ch. 736, 68A Stat. 475, imposed
an excise tax equivalent to 10 percent of selling price upon fur articles.
A
prior section 4012, act Aug. 16, 1954, ch. 736, 68A Stat. 475, defined
“article sold at retail” to include articles manufactured from material
supplied by customer and articles sold at auction.
A
prior section 4013, act Aug. 16, 1954, ch. 736, 68A Stat. 475, specified
exemptions to tax imposed by section 4011.
A
prior section 4021, acts Aug. 16, 1954, ch. 736, 68A Stat. 476; Apr.
8, 1960, Pub. L. 86-413,
1, 74 Stat. 31, imposed an excise tax equivalent to 10 percent of
selling price upon toilet preparations.
A
prior section 4022, act Aug. 16, 1954, ch. 736, 68A Stat. 476, specified
certain exemptions from tax imposed by section 4021, including items
for babies, items used in barber shops and beauty parlors, and miniature
samples.
A
prior section 4031, acts Aug. 16, 1954, ch. 736, 68A Stat. 477; Sept.
2, 1958, Pub. L. 85-859,
title I, 103, 72 Stat. 1276, imposed an excise tax equivalent to 10
percent of selling price upon luggage and handbags, including billfolds
and wallets, traveler's garment bags, and briefcases.
A
prior section 4042, act Aug. 16, 1954, ch. 736, 68A Stat. 478, provided
a cross reference to section 4222 for exemption from tax where special
motor fuels are sold for use for certain vessels.
A
prior section 4051, act Aug. 16, 1954, ch. 736, 68A Stat. 479, defined
price for which articles were sold for purposes of determining retailers
excise taxes.
A
prior section 4052, act Aug. 16, 1954, ch. 736, 68A Stat. 479, provided
that lease of an article would be considered sale of article for excise
tax purposes.
A
prior section 4053, acts Aug. 16, 1954, ch. 736, 68A Stat. 479; Sept.
2, 1958, Pub. L. 85-859,
title I, 104, 72 Stat. 1276, made provision for imposition of retailers
tax on installment sales.
A
prior section 4054, act Aug. 16, 1954, ch. 736, 68A Stat. 479, related
to application of taxes to retail sales by United States or by any
agency or instrumentality of United States unless specifically exempted
from such tax.
A
prior section 4055, act Aug. 16, 1954, ch. 736, 68A Stat. 480; June
21, 1965, Pub. L. 89-44,
title I, 101(b)(3), 79 Stat. 136, exempted from taxes articles sold
for exclusive use of any State, Territory of United States, or any
political subdivision thereof, or District of Columbia, including
use by such entities of any liquid as a fuel.
A
prior section 4056, act Aug. 16, 1954, ch. 736, 68A Stat. 480, provided
that no tax shall be imposed upon sale of any article for export,
or for shipment to a possession of United States and in due course
so shipped and exported.
A
prior section 4057, added Pub. L. 85-859,
title I, 105(a), Sept. 2, 1958, 72 Stat. 1277, and amended Pub. L. 86-344, 2(a), Sept. 21, 1959,
73 Stat. 617; Pub. L. 89-44,
title I, 101(b)(4), June 21, 1965, 79 Stat. 136; Pub. L. 91-172, title I, 101(j)(25),
Dec. 30, 1969, 83 Stat. 528, provided an exception with respect to
sale of any article to a non-profit educational organization for its
exclusive use including use of any liquid as a fuel and defined “non-profit
educational organization”.
A
prior section 4058, act Aug. 16, 1954, ch. 736, 68A Stat. 480, 4058,
formerly 4057, renumbered Sept. 2, 1958, Pub.
L. 85-859, title I, 105(a), 72 Stat. 1277, related
to cross references for exemption of sales to United States in certain
cases and administrative provisions of general application.
Amendments
to Chapter
1983--Pub. L. 97-424, title V, 512(b)(2)(A),
Jan. 6, 1983, 96 Stat. 2177, substituted “Retail Excise Taxes” for
“Special Fuels” in chapter heading, and added an analysis for subchapters
A and B.
1978--Pub. L. 95-502, title II, 202(c),
Oct. 21, 1978, 92 Stat. 1697, added item 4042.
1976--Pub. L. 94-455, title XIX, 1904(a)(1)(A),
(D), Oct. 4, 1976, 90 Stat. 1810, 1811, substituted “Special Fuels"
for “Retailers Excise Taxes” in chapter heading and added item 4041.
AMENDMENTS
2014 - Pub. L. 113-295, Div. A, Sec. 221(a)(103)(A),
struck Sec. 4001.
1997 - Subsec. (a). Pub. L. 105-34, Sec. 906(a),
amended subsec. (a). Prior to amendment it read as follows:
(a) Imposition of tax. --
There is hereby imposed on the 1st retail sale
of any passenger vehicle a tax equal to 10 percent of the price for
which so sold to the extent such price exceeds $30,000.”
Subsec. (e). Pub.
L. 105-34, Sec. 906(b)(1), amended subsec. (e) by
striking “and section 4003(a)” after “subsection (a).
Subsec. (f). Pub.
L. 105-34, Sec. 906(b)(2), amended subsec. (f) by
substituting “subsection (a)(1)” for “subsection (a).
Subsec. (f). Pub. L. 105-34, Sec. 1601(f)(3)(A),
amended subsec. (f) by inserting “and subsection 4003(a)” after “subsection
(a)”, and by inserting “, each place it appears,” before “the percentage”.
Subsec. (g). Pub. L. 105-34, Sec. 1601(f)(3)(B),
amended subsec. (g) by substituting “taxes imposed by this section
and section 4003” for “tax imposed by this section” and by substituting
“, use, or installation” for “or use”.
1996 - Subsec. (e). Pub. L. 104-188, 1703(c)(1), amended
pars (1) and (2). Before amendment, pars. (1) and (2) read as follows:
“(1) In general.--If, for any
calendar year, the excess (if any) of --
(A) $30,000, increased by the
cost-of-living adjustment for the calendar year, over
(B) the dollar amount in effect
under subsection (a) for the calendar year,
is equal to or greater than
$2,000, then the $30,000 amount in subsection (a) and section 4003(a)
(as previously adjusted under this subsection) for any subsequent
calendar year shall be increased by the amount of such excess rounded
to the next lowest multiple of $2,000.”
“(2) Cost-of-living adjustment.--For
purposes of paragraph (1), the cost-of-living adjustment for any calendar
year shall be the cost-of-living adjustment under section 1(f)(3)
for such calendar year, determined by substituting ‘calendar year
1990’ for ‘calendar year 1992’ in subparagraph (B) thereof.”
Subsec. (f). Pub.
L. 104-188, Sec. 1607(a), substituted “2002” for
“1999”.
Subsec. (f)-(g). Pub. L. 104-188, Sec. 1607(b),
redesignated subsec. (f) as subsec. (g) and added a new subsec. (f).
1993 - Pub. L. 103-66, Sec. 13161(a),
added new Section 4001 to read as above, effective Jan. 1, 1993. Prior
to amendment, Section 4001 read as follows:
“(a) Imposition of Tax.--There is hereby
imposed on the 1st retail sale of any passenger vehicle a tax equal
to 10 percent of the price for which so sold to the extent such price
exceeds $30,000.
“(b) Passenger Vehicle.--
“(1) In General.--For
purposes of subsection (a), the term “passenger vehicle” means any
4-wheeled vehicle--
“(A) which is manufactured
primarily for use on public streets, roads, and highways, and
“(B) which is rated at
6,000 pounds unloaded gross vehicle weight or less.
“(2) Special Rules.--
“(A) Trucks and Vans.--In
the case of a truck or van, paragraph (1)(B) shall be applied by substituting
“gross vehicle weight” for “unloaded gross vehicle weight”.
“(B) Limosines.--In the
case of a limosine, paragraph (1) shall be applied without regard
to subparagraph (B) thereof.
“(c) Exceptions for Taxicabs, Etc.--The tax
imposed by this section shall not apply to the sale of any passenger
vehicle for use by the purchaser exclusively in the active conduct
of a trade or business of transporting persons or property for compensation
or hire.”
EFFECTIVE DATE OF REPEAL
Repeal by Pub.
L. 113-295, Div. A, Sec. 221(a)(103)(A), effective
on the date of the enactment of this Act [Enacted: Dec. 19, 2014].
Section
221(b)(2) of Pub. L. 113-295,
Div. A, provided the following Savings Provision:
“(2)
SAVINGS PROVISION.—If—
“(A)
any provision amended or repealed by the amendments made by this section
applied to—
“(i)
any transaction occurring before the date of the enactment of this
Act [Enacted: Dec. 19, 2014],
“(ii)
any property acquired before such date of enactment, or
“(iii)
any item of income, loss, deduction, or credit taken into account
before such date of enactment, and
“(B)
the treatment of such transaction, property, or item under such provision
would (without regard to the amendments or repeals made by this section)
affect the liability for tax for periods ending after date of enactment,
nothing in the amendments or repeals made by this section shall be
construed to affect the treatment of such transaction, property, or
item for purposes of determining liability for tax for periods ending
after such date of enactment.”
EFFECTIVE
DATE OF 1997 AMENDMENTS
Amendments
by Sec. 906 of Pub. L. 105-34 applicable
to sales and installations occurring after the date of the enactment
of this Act [enacted: Aug. 5, 1997].
Amendments by Sec. 1601(f)(3) of Pub. L. 105-34 effective as if included
in the provisions of the Small Business Job Protection Act of 1996
to which they relate.
EFFECTIVE DATE OF 1996 AMENDMENTS
Section 1703(c)(2) of Pub.
L. 104-188 provided that: “The amendment made by
paragraph (1) shall take effect on the date of the enactment of this
Act [enacted: August 20, 1996].
Section 1607(c) of Pub.
L. 104-188 provided that: “The amendments made by
this section shall apply with respect to sales occurring after the
date which is 7 days after the date of the enactment of this Act [enactment
date: August 20, 1996; effective date: sales after August 27, 1996].
EFFECTIVE DATE
Section 11221(f) of Pub.
L. 101-508 provided that:
‘(1) In general. - The amendments
made by this section (enacting this subchapter, redesignating former
subchapters A and B of this chapter as subchapters B and C, respectively,
and amending sections 4221, 4222, and 4293 of this title) shall take
effect on January 1, 1991.
‘(2) Exception for binding contracts.
- In determining whether any tax imposed by subchapter A of chapter31 of the Internal Revenue Code of 1986,
as added by this section, applies to any sale after December 31, 1990,
there shall not be taken into account the amount paid for any article
(or any part or accessory therefor) if the purchaser held on September
30, 1990, a contract (which was binding on such date and at all times
thereafter before the purchase) for the purchase of such article (or
such part or accessory).'
