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1040x free Publication 850 (EN/SP) - Introductory Material Table of Contents Introduction Introduction This glossary is developed by the Tax Forms and Publications Division of the Internal Revenue Service, in consultation with the Translation Commission of the North American Academy of the Spanish Language (Comisión de Traducciones de la Academia Norteamericana de la Lengua Española) and with the Graduate Program in Translation of the University of Puerto Rico (Programa Graduado en Traducción de la Universidad de Puerto Rico). 1040x free Its purpose is to establish high standards for the quality of language usage, to promote uniformity in language usage, and to minimize the risk of misinterpretation of Spanish-language materials issued by the Service. 1040x free To meet the needs of the largest segment of taxpayers whose primary language is Spanish, the Service has issued certain Spanish-language materials. 1040x free Problems arise, however, because there is some variation in tax terminology used in Spanish-speaking countries. 1040x free Also, invention and compromise are involved in selecting words and phrases to describe certain tax concepts that have no precise equivalent in the Spanish language or legal tradition. 1040x free To help resolve these problems, a group of United States, Spanish, and Spanish-American academicians, professors, lawyers, accountants, translators, and tax law specialists developed this glossary. 1040x free Their long and varied experience with the tax systems in their own, and other countries, gives assurance of reliability. 1040x free The criteria used for words in this glossary are: consistency of usage with other governmental agencies, Spanish writing style for the tax forms and publications, and words relating to Accounting, Economics, Finance, Law, Technology and its related fields. 1040x free Any issuance containing language consistent with this glossary should be reasonably satisfactory for purposes of general guidance regarding the rights and obligations of taxpayers. 1040x free It is not intended, however, that any term in this glossary should be understood to change the meaning of any provisions of law, regulations, or any other authoritative precedent. 1040x free A periodic review is made to determine whether any additions, deletions, or revisions are needed. 1040x free Some of the terms listed are identified by the abbreviation “P. 1040x free R. 1040x free ” These terms are for use in tax forms and publications intended for circulation exclusively in Puerto Rico. 1040x free Users are invited to send their comments to: Internal Revenue Service Virtual Translation Office SE:W:CAR:MP:T:LS:VTO 1111 Constitution Ave. 1040x free , N. 1040x free W. 1040x free , IR-6102 Washington, DC 20224 or electronically to: vto@irs. 1040x free gov Prev  Up  Next   Home   More Online Publications
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1040x free 6. 1040x free   Retail Tax on Heavy Trucks, Trailers, and Tractors Table of Contents Highway vehicle. 1040x free Vehicles not considered highway vehicles. 1040x free Idling reduction device. 1040x free Separate purchase. 1040x free Leases. 1040x free Exported vehicle. 1040x free Tax on resale of tax-paid trailers and semitrailers. 1040x free Use treated as sale. 1040x free Sale. 1040x free Long-term lease. 1040x free Short-term lease. 1040x free Related person. 1040x free Exclusions from tax base. 1040x free Sales not at arm's length. 1040x free Installment sales. 1040x free Repairs and modifications. 1040x free Further manufacture. 1040x free Rail trailers and rail vans. 1040x free Parts and accessories. 1040x free Trash containers. 1040x free House trailers. 1040x free Camper coaches or bodies for self-propelled mobile homes. 1040x free Farm feed, seed, and fertilizer equipment. 1040x free Ambulances and hearses. 1040x free Truck-tractors. 1040x free Concrete mixers. 1040x free Registration requirement. 1040x free Further manufacture. 1040x free A tax of 12% of the sales price is imposed on the first retail sale of the following articles, including related parts and accessories sold on or in connection with, or with the sale of, the articles. 1040x free Truck chassis and bodies. 1040x free Truck trailer and semitrailer chassis and bodies. 1040x free Tractors of the kind chiefly used for highway transportation in combination with a trailer or semitrailer. 1040x free A truck is a highway vehicle primarily designed to transport its load on the same chassis as the engine, even if it is equipped to tow a vehicle, such as a trailer or semitrailer. 1040x free A tractor is a highway vehicle designed to tow a vehicle, such as a trailer or semitrailer. 1040x free A tractor may carry incidental items of cargo when towing or limited amounts of cargo when not towing. 1040x free A sale of a truck, truck trailer, or semitrailer is considered a sale of a chassis and a body. 1040x free The seller is liable for the tax. 1040x free Chassis or body. 1040x free   A chassis or body is taxable only if you sell it for use as a component part of a highway vehicle that is a truck, truck trailer or semitrailer, or a tractor of the kind chiefly used for highway transportation in combination with a trailer or semitrailer. 1040x free Highway vehicle. 1040x free   A highway vehicle is any self-propelled vehicle designed to carry a load over public highways, whether or not it is also designed to perform other functions. 1040x free Examples of vehicles designed to carry a load over public highways are passenger automobiles, motorcycles, buses, and highway-type trucks and truck tractors. 1040x free A vehicle is a highway vehicle even though the vehicle's design allows it to perform a highway transportation function for only one of the following. 1040x free A particular type of load, such as passengers, furnishings, and personal effects (as in a house, office, or utility trailer). 1040x free A special kind of cargo, goods, supplies, or materials. 1040x free Some off-highway task unrelated to highway transportation, except as discussed next. 1040x free Vehicles not considered highway vehicles. 1040x free   Generally, the following kinds of vehicles are not considered highway vehicles for purposes of the retail tax. 1040x free Specially designed mobile machinery for nontransportation functions. 1040x free A self-propelled vehicle is not a highway vehicle if all the following apply. 1040x free The chassis has permanently mounted to it machinery or equipment used to perform certain operations (construction, manufacturing, drilling, mining, timbering, processing, farming, or similar operations) if the operation of the machinery or equipment is unrelated to transportation on or off the public highways. 1040x free The chassis has been specially designed to serve only as a mobile carriage and mount (and power source, if applicable) for the machinery or equipment, whether or not the machinery or equipment is in operation. 1040x free The chassis could not, because of its special design and without substantial structural modification, be used as part of a vehicle designed to carry any other load. 1040x free Vehicles specially designed for off-highway transportation. 1040x free A vehicle is not treated as a highway vehicle if the vehicle is specially designed for the primary function of transporting a particular type of load other than over the public highway and because of this special design, the vehicles's capability to transport a load over a public highway is substantially limited or impaired. 1040x free To make this determination, you can take into account the vehicle's size, whether the vehicle is subject to licensing, safety, or other requirements, and whether the vehicle can transport a load at a sustained speed of at least 25 miles per hour. 1040x free It does not matter that the vehicle can carry heavier loads off highway than it is allowed to carry over the highway. 1040x free Nontransportation trailers and semitrailers. 1040x free A trailer or semitrailer is not treated as a highway vehicle if it is specially designed to function only as an enclosed stationary shelter for carrying on a nontransportation function at an off-highway site. 1040x free For example, a trailer that is capable only of functioning as an office for an off-highway construction operation is not a highway vehicle. 1040x free Gross vehicle weight. 1040x free   The tax does not apply to truck chassis and bodies suitable for use with a vehicle that has a gross vehicle weight (defined below) of 33,000 pounds or less. 1040x free It also does not apply to truck trailer and semitrailer chassis and bodies suitable for use with a trailer or semitrailer that has a gross vehicle weight of 26,000 pounds or less. 1040x free Tractors that have a gross vehicle weight of 19,500 pounds or less and a gross combined weight of 33,000 pounds or less are excluded from the 12% retail tax. 1040x free   The following four classifications of truck body types meet the suitable for use standard and will be excluded from the retail excise tax. 1040x free Platform truck bodies 21 feet or less in length. 1040x free Dry freight and refrigerated truck van bodies 24 feet or less in length. 1040x free Dump truck bodies with load capacities of 8 cubic yards or less. 1040x free Refuse packer truck bodies with load capacities of 20 cubic yards or less. 1040x free For more information on these classifications, see Revenue Procedure 2005-19, which is on page 832 of I. 1040x free R. 1040x free B. 1040x free 2005-14 at www. 1040x free irs. 1040x free gov/pub/irs-irbs/irb05-14. 1040x free pdf. 1040x free   The gross vehicle weight means the maximum total weight of a loaded vehicle. 1040x free Generally, this maximum total weight is the gross vehicle weight rating provided by the manufacturer or determined by the seller of the completed article. 1040x free The seller's gross vehicle weight rating is determined solely on the basis of the strength of the chassis frame and the axle capacity and placement. 1040x free The seller may not take into account any readily attachable components (such as tires or rim assemblies) in determining the gross vehicle weight. 1040x free See Regulations section 145. 1040x free 4051-1(e)(3) for more information. 1040x free Parts or accessories. 1040x free   The tax applies to parts or accessories sold on or in connection with, or with the sale of, a taxable article. 1040x free For example, if at the time of the sale by the retailer, the part or accessory has been ordered from the retailer, the part or accessory will be considered as sold in connection with the sale of the vehicle. 1040x free The tax applies in this case whether or not the retailer bills the parts or accessories separately. 1040x free   If the retailer sells a taxable chassis, body, or tractor without parts or accessories considered essential for the operation or appearance of the taxable article, the sale of the parts or accessories by the retailer to the purchaser is considered made in connection with the sale of the taxable article even though they are shipped separately, at the same time, or on a different date. 1040x free The tax applies unless there is evidence to the contrary. 1040x free For example, if a retailer sells to any person a chassis and the bumpers for the chassis, or sells a taxable tractor and the fifth wheel and attachments, the tax applies to the parts or accessories regardless of the method of billing or the time at which the shipments were made. 1040x free The tax does not apply to parts and accessories that are spares or replacements. 1040x free   The tax imposed on parts and accessories sold on or in connection with the taxable articles listed earlier and the tax imposed on the separate purchase of parts and accessories (discussed next) for the taxable articles listed earlier do not apply to an idling reduction device or insulation that has an R value of at least R35 per inch. 1040x free Idling reduction device. 1040x free   An idling reduction device is any device or system of devices that provide the tractor with services, such as heat, air conditioning, and electricity, without the use of the main drive engine while the tractor is temporarily parked or stationary. 1040x free The device must be affixed to the tractor and determined by the Administrator of the EPA, in consultation with the Secretary of Energy and Secretary of Transportation, to reduce idling while parked or stationary. 1040x free The EPA discusses idling reduction technologies on its website at www. 1040x free epa. 1040x free gov/smartway/technology/idling. 1040x free htm. 1040x free Separate purchase. 1040x free   The tax generally applies to the price of a part or accessory and its installation if the following conditions are met. 1040x free The owner, lessee, or operator of any vehicle that contains a taxable article installs any part or accessory on the vehicle. 1040x free The installation occurs within 6 months after the vehicle is first placed in service. 1040x free   The owners of the trade or business installing the parts or accessories are secondarily liable for the tax. 1040x free   A vehicle is placed in service on the date the owner takes actual possession of the vehicle. 1040x free This date is established by a signed delivery ticket or other comparable document indicating delivery to and acceptance by the owner. 1040x free   The tax does not apply if the installed part or accessory is a replacement part or accessory. 1040x free The tax also does not apply if the total price of the parts and accessories, including installation charges, during the 6-month period is $1,000 or less. 1040x free However, if the total price is more than $1,000, the tax applies to the cost of all parts and accessories (and installation charges) during that period. 1040x free Example. 1040x free You bought a taxable vehicle and placed it in service on April 8. 1040x free On May 3, you bought and installed parts and accessories at a cost of $850. 1040x free On July 15, you bought and installed parts and accessories for $300. 1040x free Tax of $138 (12% of $1,150) applies on July 15. 1040x free Also, tax will apply to any costs of additional parts and accessories installed on the vehicle before October 8. 1040x free First retail sale defined. 1040x free   The sale of an article is treated as the first retail sale, and the seller will be liable for the tax imposed on the sale unless one of the following exceptions applies. 1040x free There has been a prior taxable sale, lease, or use of the article (however, see Tax on resale of tax-paid trailers and semitrailers, later). 1040x free The sale qualifies as a tax-free sale under section 4221 (see Sales exempt from tax, later). 1040x free The seller in good faith accepts from the purchaser a statement signed under penalties of perjury and executed in good faith that the purchaser intends to resell the article or lease it on a long-term basis. 1040x free There is no registration requirement. 1040x free Leases. 1040x free   A long-term lease (a lease with a term of 1 year or more, taking into account options to renew) before a first retail sale is treated as a taxable sale. 1040x free The tax is imposed on the lessor at the time of the lease. 1040x free   A short-term lease (a lease with a term of less than 1 year, taking into account options to renew) before a first retail sale is treated as a taxable use. 1040x free The tax is imposed on the lessor at the time of the lease. 1040x free Exported vehicle. 1040x free   A vehicle exported before its first retail sale, used in a foreign country, and then returned to the United States is subject to the retail tax on its first domestic use or retail sale after importation. 1040x free Tax on resale of tax-paid trailers and semitrailers. 1040x free   The tax applies to a trailer or semitrailer resold within 6 months after having been sold in a taxable sale. 1040x free The seller liable for the tax on the resale can claim a credit equal to the tax paid on the prior taxable sale. 1040x free The credit cannot exceed the tax on the resale. 1040x free See Regulations section 145. 1040x free 4052-1(a)(4) for information on the conditions to allowance for the credit. 1040x free Use treated as sale. 1040x free   If any person uses a taxable article before the first retail sale of the article, that person is liable for the tax as if the article had been sold at retail by that person. 1040x free Figure the tax on the price at which similar articles are sold in the ordinary course of trade by retailers. 1040x free The tax attaches when the use begins. 1040x free   If the seller of an article regularly sells the articles at retail in arm's-length transactions, figure the tax on its use on the lowest established retail price for the articles in effect at the time of the taxable use. 1040x free   If the seller of an article does not regularly sell the articles at retail in arm's-length transactions, a constructive price on which the tax is figured will be determined by the IRS after considering the selling practices and price structures of sellers of similar articles. 1040x free   If a seller of an article incurs liability for tax on the use of the article and later sells or leases the article in a transaction that otherwise would be taxable, liability for tax is not incurred on the later sale or lease. 1040x free Presumptive retail sales price. 1040x free   There are rules to ensure that the tax base of transactions considered to be taxable sales includes either an actual or presumed markup percentage. 1040x free If the person liable for tax is the vehicle's manufacturer, producer, or importer, the following discussions show how you figure the presumptive retail sales price depending on the type of transaction and the persons involved in the transaction. 1040x free Table 6-1 outlines the appropriate tax base calculation for various transactions. 1040x free   The presumed markup percentage to be used for trucks and truck-tractors is 4%. 1040x free But for truck trailers and semitrailers and remanufactured trucks and tractors, the presumed markup percentage is zero. 1040x free Sale. 1040x free   For a taxable sale by a manufacturer, producer, importer, or related person, you generally figure the tax on a tax base of the sales price plus an amount equal to the presumed markup percentage times that sales price. 1040x free Long-term lease. 1040x free   In the case of a long-term lease by a manufacturer, producer, importer, or related person, figure the tax on a tax base of the constructive sales price plus an amount equal to the presumed markup percentage times the constructive sales price. 1040x free Short-term lease. 1040x free   When a manufacturer, producer, importer, or related person leases an article in a short-term lease considered a taxable use, figure the tax on a constructive sales price at which those or similar articles generally are sold in the ordinary course of trade by retailers. 1040x free   But if the lessor in this situation regularly sells articles at retail in arm's-length transactions, figure the tax on the lowest established retail price in effect at the time of the taxable use. 1040x free   If a person other than the manufacturer, producer, importer, or related person leases an article in a short-term lease considered a taxable use, figure the tax on a tax base of the price for which the article was sold to the lessor plus the cost of parts and accessories installed by the lessor and a presumed markup percentage. 1040x free Related person. 1040x free   A related person is any member of the same controlled group as the manufacturer, producer, or importer. 1040x free Do not treat as a related person a person that sells the articles through a permanent retail establishment in the normal course of being a retailer if that person has records to prove the article was sold for a price that included a markup equal to or greater than the presumed markup percentage. 1040x free Table 6-1. 1040x free Tax Base IF the transaction is a. 1040x free . 1040x free . 1040x free THEN figuring the base by using the. 1040x free . 1040x free . 1040x free Sale by the manufacturer, producer, importer, or related person Sales price plus (presumed markup percentage × sales price) Sale by the dealer Total consideration paid for the item including any charges incident to placing it in a condition ready for use Long-term lease by the manufacturer, producer, importer, or related person Constructive sales price plus (presumed markup percentage × constructive sales price) Short-term lease by the manufacturer, producer, importer, or related person Constructive sales price at which such or similar articles are sold Short-term lease by a lessor other than the manufacturer, producer, importer, or related person Price for which the article was sold to the lessor plus the cost of parts and accessories installed by the lessor plus a presumed markup percentage Short-term lease where the articles are regularly sold at arm's length Lowest established retail price in effect at the time of the taxable use General rule for sales by dealers to the consumer. 1040x free   For a taxable sale, other than a long-term lease, by a person other than a manufacturer, producer, importer, or related person, your tax base is the retail sales price as discussed next under Determination of tax base. 1040x free   When you sell an article to the consumer, generally you do not add a presumed markup to the tax base. 1040x free However, you do add a markup if all the following apply. 1040x free You do not perform any significant activities relating to the processing of the sale of a taxable article. 1040x free The main reason for processing the sale through you is to avoid or evade the presumed markup. 1040x free You do not have records proving that the article was sold for a price that included a markup equal to or greater than the presumed markup percentage. 1040x free In these situations, your tax base is the sales price plus an amount equal to the presumed markup percentage times that selling price. 1040x free Determination of tax base. 1040x free   These rules apply to both normal retail sales price and presumptive retail sales price computations. 1040x free To arrive at the tax base, the price is the total consideration paid (including trade-in allowance) for the item and includes any charge incident to placing the article in a condition ready for use. 1040x free However, see Presumptive retail sales price, earlier. 1040x free Exclusions from tax base. 1040x free   Exclude from the tax base the retail excise tax imposed on the sale. 1040x free Exclude any state or local retail sales tax if stated as a separate charge from the price whether the sales tax is imposed on the seller or purchaser. 1040x free Also exclude the value of any used component of the article furnished by the first user of the article. 1040x free   Exclude charges for transportation, delivery, insurance, and installation (other than installation charges for parts and accessories, discussed earlier) and other expenses incurred in connection with the delivery of an article to a purchaser. 1040x free These expenses are those incurred in delivery from the retail dealer to the customer. 1040x free In the case of delivery directly from the manufacturer to the dealer's customer, include the transportation and delivery charges to the extent the charges do not exceed what it would have cost to ship the article to the dealer. 1040x free   Exclude amounts charged for machinery or equipment that does not contribute to the highway transportation function of the vehicle, provided those charges are supported by adequate records. 1040x free For example, for an industrial vacuum loader vehicle, exclude amounts charged for the vacuum pump and hose, filter system, material separator, silencer or muffler, control cabinet, and ladder. 1040x free Similarly, for a sewer cleaning vehicle, exclude amounts charged for the high pressure water pump, hose components, and the vacuum pipe. 1040x free Sales not at arm's length. 1040x free   For any taxable article sold (not at arm's length) at less than the fair market price, figure the excise tax on the price for which similar articles are sold at retail in the ordinary course of trade. 1040x free   A sale is not at arm's length if either of the following apply. 1040x free One of the parties is controlled (in law or in fact) by the other or there is common control, whether or not the control is actually exercised to influence the sales price. 1040x free The sale is made under special arrangements between a seller and a purchaser. 1040x free Installment sales. 1040x free   If the first retail sale is an installment sale, or other form of sale in which the sales price is paid in installments, tax liability arises at the time of the sale. 1040x free The tax is figured on the entire sales price. 1040x free No part of the tax is deferred because the sales price is paid in installments. 1040x free Repairs and modifications. 1040x free   The tax does not apply to the sale or use of an article that has been repaired or modified unless the cost of the repairs and modifications is more than 75% of the retail price of a comparable new article. 1040x free This includes modifications that change the transportation function of an article or restore a wrecked article to a functional condition. 1040x free However, this exception generally does not apply to an article that was not subject to the tax when it was new. 1040x free Further manufacture. 1040x free   The tax does not apply to the use by a person of a taxable article as material in the manufacture or production of, or as a component part of, another article to be manufactured or produced by that person. 1040x free Do not treat a person as engaged in the manufacture of any article merely because that person combines the article with a: Coupling device (including any fifth wheel); Wrecker crane; Loading and unloading equipment (including any crane, hoist, winch, or power liftgate); Aerial ladder or tower; Ice and snow control equipment; Earth moving, excavation, and construction equipment; Spreader; Sleeper cab; Cab shield; or Wood or metal floor. 1040x free Combining an article with an item in this list does not give rise to taxability. 1040x free However, see Parts or accessories discussed earlier. 1040x free Articles exempt from tax. 1040x free   The tax on heavy trucks, trailers, and tractors does not apply to sales of the articles described in the following discussions. 1040x free Rail trailers and rail vans. 1040x free   This is any chassis or body of a trailer or semitrailer designed for use both as a highway vehicle and a railroad car (including any parts and accessories designed primarily for use on and in connection with it). 1040x free Do not treat a piggyback trailer or semitrailer as designed for use as a railroad car. 1040x free Parts and accessories. 1040x free   This is any part or accessory sold separately from the truck or trailer, except as described earlier under Parts or accessories and Separate purchase. 1040x free Trash containers. 1040x free   This is any box, container, receptacle, bin, or similar article that meets all the following conditions. 1040x free It is designed to be used as a trash container. 1040x free It is not designed to carry freight other than trash. 1040x free It is not designed to be permanently mounted on or affixed to a truck chassis or body. 1040x free House trailers. 1040x free   This is any house trailer (regardless of size) suitable for use in connection with either passenger automobiles or trucks. 1040x free Camper coaches or bodies for self-propelled mobile homes. 1040x free   This is any article designed to be mounted or placed on trucks, truck chassis, or automobile chassis and to be used primarily as living quarters or camping accommodations. 1040x free Further, the tax does not apply to chassis specifically designed and constructed to accommodate and transport self-propelled mobile home bodies. 1040x free Farm feed, seed, and fertilizer equipment. 1040x free   This is any body primarily designed to process or prepare, haul, spread, load, or unload feed, seed, or fertilizer to or on farms. 1040x free This exemption applies only to the farm equipment body (and parts and accessories) and not to the chassis upon which the farm equipment is mounted. 1040x free Ambulances and hearses. 1040x free   This is any ambulance, hearse, or combination ambulance-hearse. 1040x free Truck-tractors. 1040x free   This is any truck-tractor specifically designed for use in shifting semitrailers in and around freight yards and freight terminals. 1040x free Concrete mixers. 1040x free   This is any article designed to be placed or mounted on a truck, truck trailer, or semitrailer chassis to be used to process or prepare concrete. 1040x free This exemption does not apply to the chassis on which the article is mounted. 1040x free Sales exempt from tax. 1040x free   The following sales are ordinarily exempt from tax. 1040x free Sales to a state or local government for its exclusive use. 1040x free Sales to Indian tribal governments, but only if the transaction involves the exercise of an essential tribal government function. 1040x free Sales to a nonprofit educational organization for its exclusive use. 1040x free Sales to a qualified blood collector organization (as defined under Communications Tax in chapter 4) for its exclusive use in the collection, storage, or transportation of blood. 1040x free Sales for use by the purchaser for further manufacture of other taxable articles (see below). 1040x free Sales for export or for resale by the purchaser to a second purchaser for export. 1040x free Sales to the United Nations for official use. 1040x free Registration requirement. 1040x free   In general, the seller and buyer must be registered for a sale to be tax free. 1040x free See the Form 637 instructions for more information. 1040x free Certain registration exceptions apply in the case of sales to state and local governments, sales to foreign purchasers for export, and sales for resale or long term leasing. 1040x free Further manufacture. 1040x free   If you buy articles tax free and resell or use them other than in the manufacture of another article, you are liable for the tax on their resale or use just as if you had manufactured and made the first retail sale of them. 1040x free Credits or refunds. 1040x free   A credit or refund (without interest) of the retail tax on the taxable articles described earlier may be allowable if the tax has been paid with respect to an article and, before any other use, such article is used by any person as a component part of another taxable article manufactured or produced. 1040x free The person using the article as a component part is eligible for the credit or refund. 1040x free   A credit or refund is allowable if, before any other use, an article is, by any person: Exported, Used or sold for use as supplies for vessels, Sold to a state or local government for its exclusive use, Sold to a nonprofit educational organization for its exclusive use, or Sold to a qualified blood collector organization (as defined under Communications Tax in chapter 4) for its exclusive use in the collection, storage, or transportation of blood. 1040x free A credit or refund is also allowable if there is a price readjustment by reason of the return or repossession of an article or by reason of a bona fide discount, rebate, or allowance. 1040x free   See also Conditions to allowance in chapter 5. 1040x free Tire credit. 1040x free   A credit is allowed against the retail tax on the taxable articles described earlier if taxable tires are sold on or in connection with the sale of the article. 1040x free The credit is equal to the manufacturers excise tax imposed on the taxable tires (discussed earlier). 1040x free This is the section 4051(d) taxable tire credit and is claimed on Schedule C (Form 720) for the same quarter for which the tax on the heavy vehicle is reported. 1040x free Prev  Up  Next   Home   More Online Publications