022.01 Transactions that qualify as occasional sales are exempt. Occasional sale means a sale, but not a lease or rental, of property that is described in this regulation or a sale by a religious organization described in Reg-1-091, Religious Organizations.
022.02 An occasional sale described in this regulation does not include:
022.02A Any sale that is made, supervised, or aided by an auctioneer or agent or employee of an auctioneer;
022.02B Any sale where the seller did not pay the tax on the item that is being sold. The seller is considered to have paid the tax when:
022.02B(1) the seller purchased the item before June 1, 1967, or the seller was not required to pay the tax on the purchase or subsequent use of the item, or
022.02B(2) the seller obtained the item through a sale or transfer described in paragraph 022.03 and the previous owner paid the tax.
022.02C Any sale of any inventory of property purchased for resale or for lease.
022.02D Any sale of a motor vehicle, new property, or motorboat on or after January 1, 1997, except a sale in section 022.03.
022.03 An occasional sale includes the following transactions. The transactions in sections 022.03A through 022.03A(9) may involve either new or used property, a motor vehicle, or a motorboat.
022.03A In which the property is the subject of an intercompany sale from a subsidiary to the parent, from a parent to a subsidiary, from one subsidiary to another subsidiary of the same parent, or between brother-sister companies. This subdivision applies to corporations that have at least fifty per cent common ownership, and other entities that would be considered a parent, subsidiary, or brother-sister if they were corporations;
022.03A(1) From one corporation to another corporation pursuant to a reorganization. Reorganization shall mean a statutory merger or consolidation or the acquisition by a corporation of substantially all of the properties of another corporation when the consideration is solely all or a part of the voting stock of the acquiring corporation or of its parent or subsidiary corporation;
022.03A(2) In connection with the winding up, dissolution, or liquidation of a corporation, only when there is a distribution of the property of such corporation to the shareholders in kind if the portion of the property so distributed to the shareholder is substantially in proportion to the share of stock or securities held by the shareholders;
022.03A(3) To a corporation for the purpose of organization of such corporation or the contribution of additional capital to such corporation when the former owners of the property are immediately after the transfer in control of the corporation, and the stock or securities, received by each, is substantially in proportion to his or her interest in the property prior to the transfer;
022.03A(4) To a partnership in the organization of such partnership if the former owners of the property are immediately after the transfer partners in such partnership and the interest in the partnership, received by each, is substantially in proportion to his or her interest in the property prior to the transfer;
022.03A(5) From a partnership to the partners when made in kind in the dissolution of such partnership if the portion of the property so distributed to the partners in the partnership is substantially in proportion to the interest in the partnership held by the partners; and
022.03A(6) To a limited liability company in the organization of such limited liability company if the former owners of the property transferred are, immediately after the transfer, members of such limited liability company and the interest in the limited liability company received by each is substantially in proportion to his or her interest in the property prior to the transfer;
022.03A(7) From a limited liability company to the members thereof when made in kind in the dissolution of such limited liability company if the portion of the property so distributed to the members of the limited liability company is substantially in proportion to the interest in the limited liability company held by the members;
022.03A(8) From one limited liability company to another limited liability company pursuant to a reorganization; or
022.03A(9) Any other transaction that qualifies as a tax-free transaction under the Internal Revenue Code of 1986, as amended.
022.04 An occasional sale includes the sale of either new or used business assets, where a person liquidates his or her business in a single transaction in a sale to a single buyer. Such liquidation must be all or substantially all of the property of the trade or business.
022.05 Occasional sale includes a sale of used business or farm machinery or equipment in which property productively used by a seller as a depreciable capital asset for more than one year in his business is sold.
022.06 Occasional sale includes a sale of household goods and personal effects by an individual when such property was originally acquired and used for personal use. All such sales must occur at an individual's residence and may include the property of more than one person.
022.06A Such sales may not be held on more than three days during a calendar year at any residence.
022.06B Such sales may not include property of a type which is similar to that sold by the individual or any member of his household in a trade or business.
022.07 Persons claiming the occasional sale exclusion as applicable to motor vehicles or motorboats shall provide the county treasurer, or other designated county official, at the time of registration of the vehicle or motorboat with evidence the transfer falls within paragraph 022.03. No other sales of motor vehicles or motorboats qualify as occasional sales.
(Section 77-2702.09, R.R.S.1996. November 11, 1998.)