### Question
How does the law define nontaxable use?


### Answer
Under *26 U.S.C. § 6427*, **nontaxable use** is defined as:

> any use which is exempt from the tax imposed by section 4041(a)(1) other than by reason of a prior imposition of tax

#### Citation:
  - *26 U.S.C. § 6427*
  - Heading: **Subtitle F-Procedure and Administration > CHAPTER 65-ABATEMENTS, CREDITS, AND REFUNDS > Subchapter B-Rules of Special Application**

