PUBLIC LAW 103-66—AUG. 10, 1993 107 STAT. 449 PART V—LUXURY TAX SEC. 13161. REPEAL OF LUXURY EXCISE TAXES OTHER THAN ON PAS- SENGER VEHICLES. (a) IN GENERAL.— Subchapter A of chapter 31 (relating to retail excise taxes) is amended to read as follows: Subchapter A—Luxury Passenger Automobiles "Sec. 4001. Imposition of tax. "Sec. 4002. Ist retail sale; uses, etc. treated as sales; determination of price. "Sec. 4003. Special rules. <«EC. 4001. IMPOSITION OF TAX. "(a) IMPOSITION OF TAX. — There is hereby imposed on the 1st retail S£de of any passenger vehicle a tax equal to 10 percent of the price for which so sold to the extent such price exceeds $30,000. "(b) PASSENGER VEHICLE.— "(1) IN GENERAL. —For purposes of this subchapter, the term 'passenger vehicle' means any 4-wheeled vehicle— "(A) which is manufactured primarily for use on public streets, roads, and highways, and "(B) which is rated at 6,000 pounds unloaded gross vehicle weight or less. "(2) SPECIAL RULES. — "(A) TRUCKS AND VANS. —In the case of a truck or van, paragraph (I)(B) shall be applied by substituting 'gross vehicle weight* for 'imloaded gross vehicle weight'.
- (B) LIMOUSINES. —In the case of a limousine, paragraph (1) shall be applied without regard to subparagraph
(B) thereof. "(c) EXCEPTIONS FOR TAXICABS, ETC.— The tax imposed by this section shall not apply to the sale of any passenger vehicle for use by the purchaser exclusively in the active conduct of a trade or business of transporting persons or property for compensation or hire. "(d) EXEMPTION FOR LAW ENFORCEMENT USES, ETC.— NO tax shall be imposed by this section on the sale of any passenger vehicle— "(1) to the Federal Government, or a State or local government, for use exclusively in police, firefighting, search and rescue, or other law enforcement or public safety activities, or in public works activities, or "(2) to any person for use exclusively in providing emergen^ medical services, ^(e) INFLATION ADJUSTMENT.— "(1) IN GENERAL.If, for any calendar year, the excess (if any) of— "(A) $30,000, increased by the cost-of-living adjustment for the calendar year, over "(B) the dollar amount in effect under subsection (a) for the calendar year, is equal to or greater than $2,000, then the $30,000 amount in subsection (a) and section 4003(a) (as previously adjusted under this subsection) for any subsequent calendar year shall be increased by the amount of such excess rounded to the next lowest multiple of $2,000.
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