### Question
How is the term exempt use defined?


### Answer
The term **exempt use** is defined in *26 U.S.C. § 4003* as the following:

> any use of a vehicle if the 1st retail sale of such vehicle is not taxable under this subchapter by reason of such use

#### Citation:
  - *26 U.S.C. § 4003*
  - Heading: **Subtitle D-Miscellaneous Excise Taxes > CHAPTER 31-RETAIL EXCISE TAXES > Subchapter A-Luxury Passenger Automobiles**

