D.C. Mun. Regs. tit. 9, r. 9-402

Current through Register Vol. 71, No. 43, October 25, 2024

Rule 9-402 - CASUAL AND ISOLATED SALES

402.1

Casual and isolated sales within the exemption provided by D.C. Code § 47-2005(7) are limited to sales of a non-recurring nature that are made by a vendor who is not regularly engaged in the business of making sales at retail. The casual and isolated sale exemption does not apply to any of the following sales:

(a) Sales by a vendor who is registered with the Office of Tax and Revenue for a sales and use tax account;

(b) Sales by a vendor who is regularly engaged in the business of making sales at retail regardless of whether the property being disposed was originally acquired for use or consumption by that vendor;

(c) Sales made on a marketplace as defined in 47-2002(g-4); or

(d) A sale of the entire operating assets of a business or of a separate division, branch, or identifiable segment of a business where the sale is by a vendor who is regularly engaged in the business of making sales at retail.

402.2

Examples of casual and isolated sales include, but are not limited to, the following:

(a) An individual selling a piece of household furniture;

(b) A law firm selling a set of law books; or

(c) A church selling a pipe organ or pews for which it has no further use.

402.3

Examples of sales that are not eligible for the casual and isolated sale exemption include, but are not limited to, the following:

(a) A bookstore selling bookshelves;

(b) A restaurant selling a stove;

(c) An individual selling a piece of household furniture on a marketplace; or

(d) A restaurant or hotel selling its tangible personal property in a total asset sale in liquidation or business sale.

402.4

Except for the first 5 charity auctions or other fundraising events during a calendar year conducted by a nonprofit teaching hospital, the gross receipts from the sales of food, meals, greeting cards, magazine subscriptions, novelties, toys, jewelry, wearing apparel, household appliances, seasonal or holiday decorations, plants and other items purchased or acquired by semipublic institutions (such as churches, religious, scientific, and educational organizations or institutions) and by social, fraternal, and benevolent organizations and other organizations or institutions of a similar nature, for the purpose of resale at planned or organized functions, affairs, or campaigns (such as auctions, bazaars, luncheons, dinners, suppers, antique shows, rummage sales, house-to-house campaigns, fundraising events and similar activities) are not considered to be casual and isolated sales and are subject to District sales tax.

D.C. Mun. Regs. tit. 9, r. 9-402

Administrative Ruling No. 2, 16 DCRR; amended by Final Rulemaking published at 68 DCR 5317 (5/14/2021)