Part II. National Sales and Use Tax

SECTION 1. DEFINITIONS
 

Definitions for terms used in this part are equivalent to those of the United States Constitution or are explicitly stipulated below.

Business: Includes all activities engaged in or caused to be engaged in with the object of gain, benefit or advantage, direct or indirect.

Buyer: Purchaser

Charitable organization: Any entity organized and operated exclusively for charitable, philosophical, scientific, testing for public safety, literary or educational purposes, or to foster national or international amateur sports competition, or for the prevention of cruelty to children or animals, provided that no part of the entity’s net earnings goes to the benefit of any private shareholder or individual.

Coin: Monetized bullion or other forms of money manufactured from gold, silver, platinum, palladium, or other metals now or in the future and used as a medium of exchange in the United States or in any foreign nation.
 

Commerce: Any kind or type of exchange of goods, productions, or property, or the rights to property offered for a consideration to the general public at large.

Contrived Sale: A commercial transaction executed in an extraordinary manner for the purpose of evading the national sales and use tax otherwise due.

Groceries: Food or drink advertised or marketed for human consumption and sold in the same form, condition, quantities, and packaging as is commonly sold by grocers, such as: cereals and cereal products; milk and milk products; meats and meat products; fish and fish products; eggs and egg products; vegetables and vegetable products; fruits and fruit products; sugars, sugar products and sugar substitutes; coffees and coffee substitutes; teas, cocoa and cocoa products, carbonated and non-carbonated soft (nonalcoholic) drinks; spices, condiments and salt; or any combinations of food products or food product substitutes, whether sold prepared or unprepared. The term does not encompass chewing gum, cocktail mixes, alcoholic drinks, proprietary medicines, lozenges, tonics, ice, vitamins and other dietary supplements, or food or food products not for human consumption such as pet food. Nor does it encompass food or drink served or furnished in or by cafes, restaurants, lunch counters, cafeterias, delicatessens, hotels, drugstores, social clubs, nightclubs, cabarets, resorts, snack bars, caterers, carryout shops, and other like places of business, whether fixed or mobile, such as pushcarts, motor vehicles or other mobile facilities, at which prepared food or drink is regularly sold; nor food or drink vended by machines for a vendor; nor food or drink furnished, prepared, or served for consumption on or near the premises of the retailer although such food or drink is sold on a “take out” or “to go” order and is bagged, packaged, or wrapped and taken from the premises of the retailer.

Manufacture: The operation of producing a new product, article, substance, or commodity different from and having a distinctive name, character, or use from its constitute raw or prepared materials.
 

Person: Any individual, firm, partnership, joint adventure, corporation, estate, or trust, or any group or combination acting as a unit, but not a governmental unit, and the plural as well as the singular number.

Personal property: Exclusive individual ownership of private property.

Precious metal bullion: Any refined precious metal, such as gold, silver, platinum, and palladium, which is in a state or condition where its value depends primarily upon its precious metal content and not its form.

Private property: Everything subject to ownership, not denominated as real estate; a person’s right or interest in things, either corporeal, meaning moveable and tangible things such as animals, furniture, merchandise, etc., or incorporeal, meaning rights to intangible things such as name, image, endorsements, annuities, stocks, shares, patents, copyrights, etc.

Profit: A benefit, advantage or gain, particularly a pecuniary gain of excess returns over expenditures, accruing to an owner through the use or exchange of their property, or their rights to property, other than an individual’s personal labor, barter or trade.

Property: Everything that is the subject of ownership, corporeal or incorporeal, tangible or intangible, visible or invisible, real, private or personal.

Property rights: Any type of right to specific property.

Purchase: The transfer of property or property rights from one person to another by voluntary act or agreement in exchange for a valuable consideration.

Purchase price: The cost or consideration paid by the purchaser, exclusive of any direct tax imposed by territorial, state, or local government and exclusive of the national sales and use tax.

Purchaser: Person who acquires property or rights to property in commerce for a valuable consideration; buyer; vendee.

Real estate: Land and those things erected or growing upon it, such as buildings, fences or crops. The term embraces items such as light, plumbing and heating fixtures when permanently attached.

Retailer: Person doing a retail business, known to the trade and public as such, and selling in commerce to any user or consumer; also called vendor or seller.

Retail sale: All sales other than wholesale sales.
 

Sale: The commercial exchange of property or property rights for money, for other property or property rights, or for a consideration, either immediate or over a period of time, as in an installment or credit transaction, rent or lease. The term does not include gifts to immediate family members; nor does it encompass transfers of assets among persons holding ownership interests in those assets providing such transfers are in direct proportion to their interest in either settlement or rearrangement of those interests-such as: the transfer of assets between a partner and a partnership in the formation or dissolution of the partnership; the transfer of assets between a shareholder and a corporation in the formation or dissolution of the corporation; the transfer of assets between parent and subsidiary corporations; or the repossession of private property or property rights by a person with an ownership interest-and the purpose of such transfers is merely an exchange of assets, not to avoid the national sales and use tax otherwise due.

School: Any institution or person offering training or educational services to the public.

Seller: Any person who transfers property or property rights by sale in commerce; a merchant, a retail dealer, a supplier, a retailer, a vendor; one who offers a service or buys to sell.

Tangible private property: Corporeal private property.

Tax: Either a tax payable by the purchaser of property or of rights to property subject to taxation, or an aggregate amount of taxes due from the taxpayer, as the context may require.

Taxpayer: Any person obligated to account to the National Tax Service for taxes payable, to be collected, collected, or due.
 

Vendee: Purchaser.

Vendor: Seller.

Wholesale sale: A sale by manufacturers, producers or wholesalers to retail merchants, jobbers, dealers, or other manufacturers, producers or wholesalers for ultimate resale but not sales made to users or consumers not for resale, even when made by or to a recognized manufacturer, producer or wholesaler, the latter sales being deemed retail sales.

Wholesaler: Person doing regularly organized wholesale or jobbing business, known to the trade as such and selling to retail merchants, jobbers, dealers, or other wholesalers for resale.

Read Explanation and Details for Section 1.