(a) A sale of
a custom home, regardless of the stage of completion of such home
shall be considered a "homeowner's bona fide non-business sale" and
not subject to the tax on speculative builders if:
(1) the property
was actually used as the principal place of family residence or
vacation residence by the immediate family of the seller for the
six (6) months next prior to the offer for sale; and
(2) the seller
has not sold more than two (2) such residences (or, if the residence
is a vacation residence, two (2) such vacation residences) within
the thirty-six (36) months immediately prior to the offer for sale;
and
(3) the seller
has not licensed, leased, or rented the sold premises for any period
within twenty-four (24) months prior to the offer for sale.
(b) In the event
that a homeowner of a family residence contracts with a licensed construction
contractor for improvements to a residence, the construction contracting
on a family residence shall be presumed to be for an owner's bona
fide non-business purpose and all construction contractors shall be
required to report and pay the tax imposed on all such improvements.
(c) Purchases
by a homeowner of tangible personal property for inclusion in any
construction, alteration, or repair of his residence shall be subject
to tax as retail sales to the ultimate consumer.
(d) "Owner"
and "Homeowner" as used in this Regulation shall only mean
an individual, and no other entity, association, or representative
shall qualify; except that an administrator, executor, personal representative,
or guardian in guardianship or probate proceedings, for the estate
of a deceased or incompetent person or a minor, may claim "homeowner"
status for such person if such person would have otherwise qualified
with respect to the specific property involved.
