It is enacted by the General Assembly as follows:

SECTION 1. Section 44-18-20 of the General Laws in Chapter 44-18 entitled "Sales and Use Taxes -- Liability and Computation" is hereby amended to read as follows:

{ADD 44-18-20. Use tax imposed. -- ADD} (1) An excise tax is hereby imposed on the storage, use, or other consumption in this state of tangible personal property, including a motor vehicle, a boat, an airplane, or a trailer, purchased from any retailer at the rate of six percent (6%) of the sale price of the property.

(2) An excise tax is hereby imposed on the storage, use, or other consumption in this state of a motor vehicle, a boat, an airplane, or a trailer purchased from other than a licensed motor vehicle dealer or other than a retailer of boats, airplanes, or trailers respectively, at the rate of six percent (6%) of the sale price of the motor vehicle, boat, airplane, or trailer.

(3) The word "trailer" as used in this section and in section 44-18-21 shall mean and include those defined in subsections (a) through (e) of section 31-1-5 of the general laws and shall also include boat trailers, camping trailers, house trailers, and mobile homes.

(4) Notwithstanding the provisions contained in this section and in section 44-18-21 relating to the imposition of a use tax and liability therefor on certain casual sales, no such tax shall be payable in any such casual sale:

(a) When the transferee or purchaser is the spouse, mother, father, brother, sister, or child of the transferor or seller; or

(b) When the transfer or sale is made in connection with the organization, reorganization, dissolution, or partial liquidation of a business entity, provided:

(i) The last taxable sale, transfer, or use of the article being transferred or sold was subjected to a tax imposed by this chapter; and

(ii) The transferee is the business entity herein referred to or is a stockholder, owner, member, or partner thereof; and

(iii) Any gain or loss to the transferor is not recognized for income tax purposes under the provisions of the federal income tax law and treasury regulations and rulings issued thereunder; or

(c) When the sale or transfer is of a trailer, other than a camping trailer, of the type ordinarily used for residential purposes and commonly known as a house trailer or as a mobile home; or

(d) When the transferee or purchaser is otherwise exempt under the provisions of section 44-18-30 of this chapter or other general law of this state or special act of the general assembly of this state.

(5) The term "casual" shall mean a sale made by a person other than a retailer, provided, however, that in the case of a sale of a motor vehicle, the term shall mean a sale made by a person other than a licensed motor vehicle dealer, or an auctioneer at an auction sale. In no case shall the tax imposed under the provisions of the preceding paragraphs on the storage, use, or other consumption in this state of a used motor vehicle be less than the product obtained by multiplying the amount of the retail dollar value at the time of purchase of the motor vehicle by the applicable tax rate, provided, however, that where the amount of the sale price exceeds the amount of the retail dollar value, the tax shall be based on the sale price. The tax administrator shall use as his or her guide the retail dollar value as shown in the current issue of any nationally recognized used vehicle guide for appraisal purposes in this state. On request within thirty (30) days by the taxpayer after payment of the tax, if the tax administrator shall determine that the retail dollar value as set forth above is inequitable or unreasonable, he or she shall, after affording the taxpayer reasonable opportunity to be heard, redetermine the tax.

(6) Every person making more than five (5) retail sales of tangible personal property during any twelve-month period, including sales made in the capacity of assignee for the benefit of creditors or receiver or trustee in bankruptcy, shall be considered a retailer within the provisions of this chapter.

(7) "Casual sale" includes a sale of tangible personal property not held or used by a seller in the course of activities for which the seller is required to hold a seller's permit or permits or would be required to hold a seller's permit or permits if the activities were conducted in this state, provided the sale is not one of a series of sales sufficient in number, scope, and character (more than five (5) in any twelve-month period) to constitute an activity for which the seller is required to hold a seller's permit or would be required to hold a seller's permit if the activity were conducted in this state.

{ADD Casual sales also include sales made at bazaars, fairs, picnics, or similar events by nonprofit organizations which are organized for charitable, educational, civic, religious, social, recreational, fraternal, or literary purposes during two (2) events not to exceed a total of six (6) days duration each calendar year. Each such event shall require the issuance of a permit by the division of taxation. Where sales are made at such events by a vendor which holds a sales tax permit and is not a nonprofit organization, such sales are in the regular course of business and are not exempt as casual sales. ADD}

(8) Provided, however, the use tax imposed hereunder for the period commencing July 1, 1990 shall be at the rate of seven percent (7%).

SECTION 2. This act shall take effect upon passage.