Page:United States Statutes at Large Volume 104 Part 2.djvu/850

 104 STAT. 1388-442 PUBLIC LAW 101-508—NOV. 5, 1990 "SEC. 4007. FURS. "(a) IMPOSITION OF TAX. — There is hereby imposed on the 1st retail sale of the following articles a tax equal to 10 percent of the price for which so sold to the extent such price exceeds $10,000: "(1) Articles made of fur on the hide or pelt. "(2) Articles of which such fur is a major component. "(b) MANUFACTURE FROM CUSTOMER'S MATERIAL. —I f— "(1) a person, in the course of a trade or business, produces an article of the kind described in subsection (a) from fur on the hide or pelt furnished, directly or indirectly, by a customer, and "(2) the article is for the use of, and not for resale by, such customer, the delivery of such article to such customer shall be treated as the 1st retail sale of such article for a price equal to its fair market value at the time of such delivery. "PART II—RULES OF GENERAL APPLICABILITY "Sec. 4011. Definitions and special rules. "Sec. 4012. Termination. "SEC. 4011. DEFINITIONS AND SPECIAL RULES. "(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. —I f any person uses an article taxable under this subchapter (including any use after importation) before the 1st retail sale of such article, then such person shall be liable for tax under this subchapter in the same manner as if such article were sold at retail by him. " (2) EXEMPTION FOR FURTHER MANUFACTURE.— Paragraph (1) shall not apply to use of an article as material in the manufacture or production of, or as a component part of, another article taxable under this subchapter to be manufactured or produced by him. " (3) EXEMPTION FOR DEMONSTRATION USE OF PASSENGER VE- HICLES. — Paragraph (1) shall not apply to any use of a passenger vehicle as a demonstrator for a potential customer while the potential customer is in the vehicle. " (4) EXCEPTION FOR USE AFTER IMPORTATION OF CERTAIN ARTI- CLES. —Paragraph (1) shall not apply to the use of an article after importation if the user or importer establishes to the satisfaction of the Secretary that the 1st use of the article occurred before January 1, 1991, outside the United States. "(5) COMPUTATION OF TAX.— In the case of any person made liable for tax by paragraph (1), the tax shall be computed on the price at which similar articles are sold at retail in the ordinary course of trade, as determined by the Secretary. "(c) LEASES CONSIDERED AS SALES.— For purposes of this subchapter— (1) IN GENERAL.— Except as otherwise provided in this subsection, the lease of an article (including any renewal or any extension of a lease or any subsequent lease of such article) by any person shall be considered a sale of such article at retail. (2) SPECIAL RULES FOR CERTAIN LEASES OF PASSENGER VE- HICLES, BOATS, AND AIRCRAFT. —

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