§ 9773. Imposition of compensating use tax
Unless property or telecommunications service has already been or will be subject
to the sales tax under this chapter, there is imposed on every person a use tax at
the rate of six percent for the use within this State, except as otherwise exempted
under this chapter:
(1) of any tangible personal property purchased at retail;
(2) of any tangible personal property manufactured, processed, or assembled by the user,
if items of the same kind of tangible personal property are offered for sale by him
or her in the regular course of business, but the mere storage, keeping, retention,
or withdrawal from storage of tangible personal property or the use for demonstrational
or instructional purposes of tangible personal property by the person who manufactured,
processed, or assembled such property shall not be deemed a taxable use by him or
her; and for purposes of this section only, the sale of electrical power generated
by the taxpayer shall not be considered a sale by him or her in the regular course
of business if at least 60 percent of the electrical power generated annually by the
taxpayer is used by the taxpayer in his or her trade or business;
(3) of any tangible personal property, however acquired, where not acquired for purposes
of resale, upon which any taxable services described in subdivision 9771(3) of this title have been performed;
(4) specified digital products transferred electronically to an end user; and
(5) telecommunications service, except coin-operated telephone service, private telephone
service, paging service, private communications service, or value-added non-voice
data service. (Added 1969, No. 144, § 1, eff. June 1, 1969; amended 1973, No. 270 (Adj. Sess.), § 6; 1981, No. 170 (Adj. Sess.), § 13; 1985, No. 165 (Adj. Sess.), § 1, eff. May 5, 1986; 1991, No. 32, § 11, eff. June 1, 1991; 1993, No. 1 (Sp. Sess.), § 3, eff. Sept. 1, 1993; 2003, No. 68, § 33; 2009, No. 1 (Sp. Sess.), § H.43; 2013, No. 174 (Adj. Sess.), § 47.)