Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2015
Sales and Use Tax Annotations
425.0000 PRESCRIPTION MEDICINES—Regulation 1591
(b) SPECIFIC ITEMS CLASSIFIED.
425.0909 Vehicle Modified for Use by Handicapped Person. A handicapped person purchased a van from a unlicensed person, intending to modify the van to her needs. The previous owner of the vehicle had modified it to some degree for use by the physically handicapped. However, the purchaser was unable to adapt it further to meet her needs and sold it prior to registering it.
A person who purchases a vehicle is liable for use tax even though the person sells the vehicle prior to transferring registration. However, the part of the transfer price attributable to modifications made to enable the vehicle to be used to transport a physically handicapped person is excluded from the amount subject to tax. 10/20/94.