PUBLIC LAW 101-508—NOV. 5, 1990 104 STAT. 1388-441 "(ii) the aggregate price of the parts and accessories (and their installation) installed before such part or accessory, plus "(iii) the price for which the passenger vehicle, boat, or aircraft was sold, over "(B) $30,000 in the case of a passenger vehicle, $100,000 in the case of a boat, and $250,000 in the case of an aircraft, "(3) EXCEPTIONS. —Paragraph (1) shall not applj'^ if^ "(A) the part or accessory installed is a replacement part or accessory, or "(B) the aggregate price of the parts and accessories (and their installation) described in paragraph (1) with respect to the taxable article does not exceed $200 (or such other amount or amounts as the Secretary may by regulation prescribe). "(4) INSTALLERS SECONDARILY LIABLE FOR TAX.— The owners of the trade or business installing the parts or accessories shall be secondarily liable for the tax imposed by this subsection. " (c) IMPOSITION OF TAX ON SALES, ETC., WITHIN 2 YEARS OF ARTI- CLES PURCHASED TAX-FREE.—
- '(1) IN GENERAL. —I f^
"(A) no tax was imposed under this subchapter on the 1st retail sale of any article by reason of its exempt use, and "(B) within 2 years after the date of such 1st retail sale, such article is resold by the purchaser or such purchaser makes a substantial non-exempt use of such article, then such sale or use of such article by such purchaser shall be treated as the 1st retail sale of such article for a price equal to its fair market value at the time of such sale or use. "(2) EXEMPT USE.—For purposes of this subsection, the term 'exempt use' means any use of an article if the 1st retail sale of such article is not taxable under this subchapter by reason of such use. "Subpart B—Jewelry and Furs "Sec. 4006. Jewelry. " Sec. 4007. Furs. "SEC. 4006. JEWELRY. "(a) IMPOSITION OF TAX. — There is hereby imposed on the 1st retail sale of any jewelry a tax equal to 10 percent of the price for which so sold to the extent such price exceeds $10,000. "(b) JEWELRY.— For purposes of subsection (a), the term 'jewelry' means all articles commonly or commercially known as jewelry, whether real or imitation, including watches. " (c) MANUFACTURE FROM CUSTOMER'S MATERIAL. — If— "(1) a person, in the course of a trade or business, produces jewelry from material furnished directly or indirectly by a customer, and "(2) the jewelry is for the use of, and not for resale by, such customer, the delivery of such jewelry to such customer shall be treated as the 1st retail sale of such jewelry for a price equal to its fair market value at the time of such delivery.