Internal Revenue Service
Revenue Ruling

TaxLinks.com   sm

 Rev. Rul. 57-81

1957-1 C.B. 379

Caution: Obsoleted by Rev. Rul. 69-227

IRS Headnote

A stand with a flat top upon which a taxable business machine, nontaxable machine, or other articles may be placed is considered primarily susceptible of general use and the charge for such stand, sold with a taxable business machine, is not subject to the manufacturers excise tax.

Full Text

Rev. Rul. 57-81

Advice has been requested whether the manufacturers excise applies to sales of a stand sold with a business machine.

The stand has tubular steel legs, rubber casters, a flat top on which a dictating or transcribing machine may be placed, and shelves for accessories. The stand does not contribute in any manner to the operation of the machines, and it could be used as a stand for other purposes. It is sold as an optional or separate piece of equipment.

Section 4191 of the Internal Revenue Code of 1954 imposes a tax on sales by the manufacturer of the business machines enumerated in such section, including parts and accessories sold on or in connection therewith. Dictating and transcribing machines are included in that enumeration.

It is held that such a stand, upon which a taxable or nontaxable machine or other articles may be placed, is considered primarily susceptible of general use and not a part or accessory for the machine. Accordingly, the stand referred to above is not subject to the manufacturers excise tax, whether sold separately or in connection with a taxable machine.