26 CFR § 48.4218-3 - Events subsequent to taxable use of article.
---
identifier: "/us/cfr/t26/s48.4218-3"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "26 CFR § 48.4218-3 - Events subsequent to taxable use of article."
title_number: 26
title_name: "Internal Revenue"
section_number: "48.4218-3"
section_name: "Events subsequent to taxable use of article."
chapter_name: "INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY"
subchapter_number: "D"
subchapter_name: "MISCELLANEOUS EXCISE TAXES"
part_number: "48"
part_name: "MANUFACTURERS AND RETAILERS EXCISE TAXES"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "26 U.S.C. 7805, unless otherwise noted."
cfr_part: "48"
---
# 48.4218-3 Events subsequent to taxable use of article.
Liability for tax incurred on the use of an article is not extinguished or reduced because of any subsequent sale or lease of the article even if such sale or lease would have been exempt if the article had been so sold or leased prior to use. If a manufacturer, producer, or importer of an article incurs liability for tax on his use thereof, and thereafter sells or leases the article in a transaction which otherwise would be subject to tax, liability for tax is not incurred on such sale or lease.
[T.D. 6687, 28 FR 11781, Nov. 5, 1963]