§ 44-18-20. Use tax imposed.
(a) An excise tax is imposed on the storage, use, or other consumption in this state of
tangible personal property; prewritten computer software delivered electronically
or by load and leave; vendor-hosted prewritten computer software; specified digital
products; or services as defined in § 44-18-7.3, including a motor vehicle, a boat, an airplane, or a trailer, purchased from any
retailer at the rate of six percent (6%) of the sale price of the property.
(b) An excise tax is imposed on the storage, use, or other consumption in this state of
a motor vehicle, a boat, an airplane, or a trailer purchased from other than a licensed
motor vehicle dealer or other than a retailer of boats, airplanes, or trailers respectively,
at the rate of six percent (6%) of the sale price of the motor vehicle, boat, airplane,
or trailer.
(c) The word "trailer,â€� as used in this section and in § 44-18-21, means and includes those defined in § 31-1-5(a) — (f) and also includes boat trailers, camping trailers, house trailers, and mobile
homes.
(d) Notwithstanding the provisions contained in this section and in § 44-18-21 relating to the imposition of a use tax and liability for this tax on certain casual
sales, no tax is payable in any casual sale:
(1) When the transferee or purchaser is the spouse, mother, father, brother, sister, or
child of the transferor or seller;
(2) When the transfer or sale is made in connection with the organization, reorganization,
dissolution, or partial liquidation of a business entity, provided:
(i) The last taxable sale, transfer, or use of the article being transferred or sold was
subjected to a tax imposed by this chapter;
(ii) The transferee is the business entity referred to or is a stockholder, owner, member,
or partner; and
(iii) Any gain or loss to the transferor is not recognized for income tax purposes under
the provisions of the federal income tax law and treasury regulations and rulings
issued thereunder;
(3) When the sale or transfer is of a trailer, other than a camping trailer, of the type
ordinarily used for residential purposes and commonly known as a house trailer or
as a mobile home; or
(4) When the transferee or purchaser is exempt under the provisions of § 44-18-30 or other general law of this state or special act of the general assembly of this
state.
(e) The term "casual� means a sale made by a person other than a retailer, provided, that
in the case of a sale of a motor vehicle, the term means a sale made by a person other
than a licensed motor vehicle dealer or an auctioneer at an auction sale. In no case
is the tax imposed under the provisions of subsections (a) and (b) of this section
on the storage, use, or other consumption in this state of a used motor vehicle less
than the product obtained by multiplying the amount of the retail dollar value at
the time of purchase of the motor vehicle by the applicable tax rate; provided, that
where the amount of the sale price exceeds the amount of the retail dollar value,
the tax is based on the sale price. The tax administrator shall use as his or her
guide the retail dollar value as shown in the current issue of any nationally recognized,
used-vehicle guide for appraisal purposes in this state. On request within thirty
(30) days by the taxpayer after payment of the tax, if the tax administrator determines
that the retail dollar value as stated in this subsection is inequitable or unreasonable,
he or she shall, after affording the taxpayer reasonable opportunity to be heard,
re-determine the tax.
(f) Every person making more than five (5) retail sales of tangible personal property
or prewritten computer software delivered electronically or by load and leave, or
vendor-hosted prewritten computer software, or specified digital products, or services
as defined in § 44-18-7.3 during any twelve-month (12) period, including sales made in the capacity of assignee
for the benefit of creditors or receiver or trustee in bankruptcy, is considered a
retailer within the provisions of this chapter.
(g)(1) "Casual sale� includes a sale of tangible personal property not held or used by a
seller in the course of activities for which the seller is required to hold a seller's
permit or permits or would be required to hold a seller's permit or permits if the
activities were conducted in this state, provided that the sale is not one of a series
of sales sufficient in number, scope, and character (more than five (5) in any twelve-month
(12) period) to constitute an activity for which the seller is required to hold a
seller's permit or would be required to hold a seller's permit if the activity were
conducted in this state.
(2) Casual sales also include sales made at bazaars, fairs, picnics, or similar events
by nonprofit organizations, that are organized for charitable, educational, civic,
religious, social, recreational, fraternal, or literary purposes during two (2) events
not to exceed a total of six (6) days duration each calendar year. Each event requires
the issuance of a permit by the division of taxation. Where sales are made at events
by a vendor that holds a sales tax permit and is not a nonprofit organization, the
sales are in the regular course of business and are not exempt as casual sales.
(h) The use tax imposed under this section for the period commencing July 1, 1990, is
at the rate of seven percent (7%).