Exemptions from tax — Isolated sales

(a) The gross receipts or gross proceeds derived from isolated sales not made by an established business or in an established manner are exempt from the tax.

(b) “Isolated sale” means the one-time sale of an item or group of items not made by an established business of any kind or character.
Example: Seller has an inventory of merchandise that buyer desires to purchase. Seller is in the established business of selling the merchandise. If seller sells all or part of the inventory to buyer, then it is not an isolated sale and seller must collect and remit tax on the gross receipts or gross proceeds derived from the sale of the merchandise unless other exemptions are applicable, such as the sale for resale exemption. Sale of noninventory assets is considered an isolated sale.
(c)(1) This exemption does not apply to the sale of motor vehicles, trailers, semitrailers, mobile homes, airplanes, or sales of tangible personal property at special events.

(2) See 26 CAR § 30-1129.