Current through September 17, 2024
022.01 Occasional sales are exempt from sales
tax. Occasional sale means a sale, but not a lease or rental, of property in a
transaction described in Reg-1-022.02 through Reg-1-022.09.
022.02 An occasional sale includes
transactions where the property is the subject of an intercompany sale from a
subsidiary to the parent, from a parent to a subsidiary, from one subsidiary to
another subsidiary of the same parent, or between brother-sister companies.
022.02A This applies to corporations that
have at least 50% common ownership, and other entities that would be considered
a parent, subsidiary, or brother-sister if they were corporations.
022.02B Sole proprietorships are not entities
separate and apart from the owners and do not qualify for this
exemption.
022.03 An
occasional sale includes sales of property:
022.03A From one corporation to another
corporation pursuant to a reorganization. Reorganization means a statutory
merger or consolidation; or the acquisition by a corporation of substantially
all of the properties of another corporation when the consideration is solely
all or a part of the voting stock of the acquiring corporation or of its parent
or subsidiary corporation;
022.03B
From one limited liability company to another limited liability company
pursuant to a reorganization;
022.03C In connection with the winding up,
dissolution, or liquidation of a corporation, partnership, or limited liability
company if there is a distribution of the property of the corporation,
partnership, or limited liability company to the owners substantially in
proportion to their share of stock or securities in the corporation, or
interests of the owners of the partnership or limited liability
company;
022.03D To a corporation,
partnership, or limited liability company for the purpose of organizing the
corporation, partnership, or limited liability company or contributing
additional capital to a corporation when the former owners of the property are
in control of the corporation, partnership, or limited liability company
immediately after the transfer, and the stock, securities, or interest received
by each is substantially in proportion to his or her interest in the property
prior to the transfer; or
022.03E
Any other transaction that qualifies as a tax-free transaction under the
Internal Revenue Code.
022.04 The transactions described in
Reg-1-022.02 and Reg-1-022.03 may involve new or used property, motor vehicles,
or motorboats. Persons claiming the occasional sale exclusion for purchases of
motor vehicles or motorboats must provide the county treasurer, or other
designated county official, with evidence that the transfer falls within
Reg-1-022.02 or Reg-1-022.03, at the time of registration of the motor vehicle
or motorboat.
022.05 Occasional
sale includes the sale of either new or used business assets, where a person
liquidates his or her business in a single transaction to a single buyer. The
liquidation must be all or substantially all of the property of the trade or
business.
022.06 Occasional sale
includes a sale of used business or farm machinery or equipment which was
productively used by a seller or the seller's predecessor as a depreciable
capital asset for at least one year in the business . The purchaser must obtain
an exempt sale certificate or other documentation from the seller demonstrating
that the sale was sales tax exempt. See
Reg-1-014.
022.07 The transactions described in
Reg-1-022.02 through Reg-1-022.06 may include aircraft, and are occasional
sales only if the seller or the seller's predecessor previously paid sales or
use tax, the seller purchased the property prior to June 1, 1967, or the sale
was exempt from sales and use tax when the property was purchased.
022.08 Occasional sale includes a sale of
household goods and personal effects by an individual when the property was
originally acquired and used for personal use. These sales must occur at an
individual's residence, and may include the property of more than one person,
or be carried out by an individual on an online auction site.
022.08A These sales may not be held on more
than three days during a calendar year at any residence or on an online auction
site.
022.08B These sales may not
include property which is similar to property that is sold by the individual or
any member of his or her household in a trade or business.
022.08C Household goods and personal effects
do not include motor vehicles, motorboats, or aircraft.
022.09 Occasional sale includes one sale
activity during a calendar year by a nonprofit religious organization.
022.09A The sale must be during an activity
of the nonprofit religious organization, but it does not have to take place at
a location owned by the nonprofit religious organization.
022.09B The sale may last up to three
consecutive days.
022.09C The
nonprofit religious organization may have the assistance of an auctioneer at
this sale without having to collect sales tax on the property or services
sold.
022.09D The nonprofit
religious organization may sell anything it owns at its sale. The property or
services sold may be made especially for the sale, purchased for the sale, or
donated to the nonprofit religious organization for the sale. Sales of motor
vehicles, trailers, or semi-trailers made at the sale are not occasional
sales.
022.10 Occasional
sale does not include:
022.10A Any sale that
is made, supervised, or aided by an auctioneer, or agent or employee of an
auctioneer, except for a sale by a nonprofit religious organization as provided
in Reg-1-022.09C;
022.10B Any sale
of inventory or property purchased for resale or for lease;
022.10C Any sale of a motor vehicle or
motorboat, except a sale described in Reg-1-022.02 or Reg-1-022.03;
or
022.10D Any sale of new
property, except a sale described in Reg-1-022.02, Reg-1-022.03, Reg-1-022.05,
or Reg-1-022.09.
