Internal Revenue Service
Revenue Ruling

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 Rev. Rul. 58-58

1958-1 C.B. 408

Caution: Obsoleted by Rev. Rul. 69-227

IRS Headnote

The manufacturers excise tax on household type electric, gas, and oil appliances, imposed by section 4121 of the Internal Revenue Code of 1954, does not apply to the sale by the manufacturer of a hand and face dryer which is designed to be used primarily in commerical and industrial establishments.

Full Text

Rev. Rul. 58-58

Advice has been requested whether the manufacturers excise tax on electric, gas, and oil appliances applies to the sale by the manufacturer of a hand and face dryer.

A company manufactures an electrically operated hand and face dryer which is designed to be permanently mounted on a wall. The dryer is enclosed in a cast aluminum cabinet with airflow outlets through which heated air is channeled to dry hands and face. An adjustable timer cuts off the dryer at any desired limit. These dryers are used primarily in the washrooms of commercial and industrial establishments.

Section 4121(a) of the Internal Revenue Code of 1954 imposes a tax upon the sale by the manufacturer, producer, or importer of certain enumerated electric, gas, and oil appliances of the household type (including in each case parts or accessories therefor sold on or in connection with the sale thereof). Included in the articles enumerated are electric air heaters (not including furnaces).

It is held that the hand and face dryer described above is not considered to be an electric air heater of the household type or an appliance of the household type within the meaning of section 4121 of the Code. Accordingly, the sale by the manufacturer of such an article is not subject to the manufacturers excise tax on electric, gas, and oil appliances of the household type.