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United States Code (Last Updated: May 24, 2014) |
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Title 26. INTERNAL REVENUE CODE |
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SubTitle D. Miscellaneous Excise Taxes |
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Chapter 31. RETAIL EXCISE TAXES |
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SubChapter A. Luxury Passenger Automobiles |
§ 4001. Imposition of tax
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(a) Imposition of tax (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.
(2) Applicable amount (A) In general Except as provided in subparagraphs (B) and (C), the applicable amount is $30,000.
(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) the dollar amount in effect under subparagraph (A), plus (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. (C) Purpose built passenger vehicle (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).
(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.
(b) Passenger vehicle (1) In general For purposes of this subchapter, 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) Limousines In the case of a limousine, 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.
(d) Exemption for law enforcement uses, etc. No tax shall be imposed by this section on the sale of any passenger vehicle— (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 (2) to any person for use exclusively in providing emergency medical services. (e) Inflation adjustment (1) In general The $30,000 amount in subsection (a) shall be increased by an amount equal to— (A) $30,000, multiplied by (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. (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.
(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”, each place it appears, the percentage 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 . (g) Termination The taxes imposed by this section and section 4003 shall not apply to any sale, use, or installation after
December 31, 2002 .
Amendments
1997—Subsec. (a). Pub. L. 105–34, § 906(a), amended heading and text of subsec. (a) generally. Prior to amendment, text read as follows: “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)(1). Pub. L. 105–34, § 906(b)(1), struck out “and section 4003(a)” after “in subsection (a)” in introductory provisions.
Subsec. (f). Pub. L. 105–34, § 1601(f)(3)(A)(i), inserted “and section 4003(a)” after “subsection (a)”.
Pub. L. 105–34, § 1601(f)(3)(A)(ii), inserted “, each place it appears,” before “the percentage”.
Pub. L. 105–34, § 906(b)(2), substituted “subsection (a)(1)” for “subsection (a)”.
Subsec. (g). Pub. L. 105–34, § 1601(f)(3)(B), substituted “taxes imposed by this section and section 4003” for “tax imposed by this section” and “, use, or installation” for “or use”.
1996—Subsec. (e). Pub. L. 104–188, § 1703(c)(1), reenacted heading without change and amended text generally. Prior to amendment, text 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, § 1607(b), added subsec. (f). Former subsec. (f) redesignated (g).
Pub. L. 104–188, § 1607(a), substituted “
Subsec. (g). Pub. L. 104–188, § 1607(b), redesignated subsec. (f) as (g).
1993—Pub. L. 103–66 amended section generally, substituting “Imposition of tax” for “Passenger vehicles” in section catchline and “this subchapter” for “subsection (a)” in subsec. (b)(1) and adding subsecs. (d) to (f).
Effective Date Of Amendment
Pub. L. 105–34, title IX, § 906(c),
Pub. L. 105–34, title XVI, § 1601(f)(3)(C),
Amendment by section 1601(f)(3)(A), (B) of Pub. L. 105–34 effective as if included in the provisions of the Small Business Job Protection Act of 1996, Pub. L. 104–188, to which it relates, see section 1601(j) of Pub. L. 105–34, set out as a note under section 23 of this title.
Pub. L. 104–188, title XVI, § 1607(c),
Pub. L. 104–188, title XVII, § 1703(c)(2),
Pub. L. 103–66, title XIII, § 13161(c),
Effective Date
Pub. L. 101–508, title XI, § 11221(f),