Casual and isolated sale; distribution or transfer of tangible personal property

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    (a)    The sales and use tax does not apply to a casual and isolated sale by a person who regularly does not sell tangible personal property or a taxable service if:

        (1)    the sale price is less than $1,000; and

        (2)    the sale is not made through an auctioneer or a dealer.

    (b)    The sales and use tax does not apply to a distribution of tangible personal property by:

        (1)    a corporation or joint-stock company to its stockholders as a liquidating distribution;

        (2)    a partnership to a partner; or

        (3)    a limited liability company to a member.

    (c)    (1)    The sales and use tax does not apply to a transfer of tangible personal property:

            (i)    under a reorganization within the meaning of § 368(a) of the Internal Revenue Code;

            (ii)    on organization of a corporation or joint-stock company, to the corporation or company principally in consideration for the issuance of its stock;

            (iii)    to a partnership only as a contribution to its capital or in consideration for a partnership interest in the partnership; or

            (iv)    to a limited liability company only as a capital contribution or in consideration for an interest in the limited liability company.

        (2)    For a transfer that would qualify as a casual and isolated sale under subsection (a) of this section if the sale price limitation were disregarded, the amount of liability transferred to or assumed by a corporation, joint-stock company, partnership, or limited liability company shall be excluded from the consideration transferred by the corporation, joint-stock company, partnership, or limited liability company in exchange for the tangible personal property to determine whether the transfer is made:

            (i)    principally in consideration for the issuance of stock of a corporation or joint-stock company;

            (ii)    only as a contribution to the capital of a partnership or in consideration for a partnership interest; or

            (iii)    only as a capital contribution to a limited liability company or in consideration for an interest in a limited liability company.


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