107 STAT. 450 PUBLIC LAW 103-66—AUG. 10, 1993 "(2) COST-OF-LIVING ADJUSTMENT.— For purposes of paragraph (1), the cost-of-living acijustment for any calendar year shall be the cost-of-living a4justment under section l(f)(3) for such calendar year, determined by substituting 'calendar year 1990' for 'calendar year 1992' in subparagraph (B) thereof. " (f) TERMlNATlON.The tax imposed by this section shall not apply to any sale or use after December 31, 1999. "SEC. 4002. 1ST RETAIL SALE; USES, ETC. TREATED AS SALES; DETER- MINATION OF PRICE. " (a) 1ST RETAIL SALE.—For purposes of this subchapter, the term '1st retail sale' means the 1st sale, for a purpose other than resale, after manufacture, production, or importation. "(b) USE TREATED AS SALE. — "(1) IN GENERAL. —If any person uses a passenger vehicle (including any use after importation) before the 1st retail sale of such vehicle, then such person shall be liable for tax under this subchapter in the same manner as if such vehicle were sold at retail by him. "(2) EXEMPTION FOR FURTHER MANUFACTURE. — Paragraph (1) shall not apply to use of a vehicle as material in the manufacture or production of, or as a component part of, another vehicle taxable under this subchapter to be manufactured or produced by him. "(3) EXEMPTION FOR DEMONSTRATION USE.— Paragraph (1) shall not apply to any use of a passenger vehicle as a demonstrator. "(4) EXCEPTION FOR USE AFTER IMPORTATION OF CERTAIN VEHICLES.—Paragraph (1) shall not apply to the use of a vehicle after importation if the user or importer establishes to the satisfaction of the Secretary that the 1st use of the vehicle occurred before January 1, 1991, outside the United States. "(5) COMPUTATION OF TAX.— In the case of any person made liable for tax by paragraph (1), the tax shall be computed on the price at which similar vehicles are sold at retail in the ordinary course of trade, as determined by the Secretary. "(c) LEASES CONSIDERED AS SALES. — For purposes of this subchapter— "(1) IN GENERAL.— Except as otherwise provided in this subsection, the lease of a vehicle (including any renewal or any extension of a lease or any subsequent lease of such vehicle) by any person shall be considered a sale of such vehicle at retail. "(2) SPECIAL RULES FOR LONG-TERM LEASES.— "(A) TAX NOT IMPOSED ON SALE FOR LEASING IN A QUALIFIED LEASE. —The sale of a passenger vehicle to a person engaged in a passenger vehicle leasing or rental trade or business for leasing by such person in a longterm lease shall not be treated as the 1st retail sale of such vehicle. "(B) LONG-TERM LEASE. — For purposes of subparagraph (A), the term long-term lease' means any long-term lease (as defined in section 4052). "(C) SPECIAL RULES. — In the case of a long-term lease of a vehicle which is treated as the 1st retail sale of such vehicle—
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