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 Rev. Rul. 59-4

1959-1 C.B. 295

Caution: Obsoleted by Rev. Rul. 69-227

IRS Headnote

Information for use by retailers as a guide in determining their liability on and after January 1, 1959, for the retailers excise tax on luggage, handbags, etc., imposed by section 4031 of the Internal Revenue Code of 1954 as amended by the Excise Tax Technical Changes Act of 1958 (Public Law 85-859).

Full Text

Rev. Rul. 59-4

The Internal Revenue Service has been asked to publish an illustrative list of taxable and nontaxable articles for use by retailers as a guide in determining their liability on and after January 1, 1959, for the retailers excise tax on luggage, handbags, etc.

Section 4031 of the Internal Revenue Code of 1954 as amended by section 103 of the Excise Tax Technical Changes Act of 1958 (Public Law 85-859) effective January 1, 1959, C.B. 1958-3, 92, provides as follows:

There is hereby imposed upon the following articles, by whatever name called, sold at retail (including in each case fittings or accessories therefor sold on or in connection with the sale thereof) a tax equivalent to 10 percnet of the price for which so sold-* * *

[The various articles specifically named in the law are designated by asterisks in the list below.]

The list is illustrative of determinations made by the National Office of the Service on questions of classification. The `taxable' column lists the articles specifically named in the law as indicated by asterisks, together with some alternative names by which certain of the articles may be called for merchandising or other reasons. The `nontaxable' column includes certain articles which, while taxable if sold at retail prior to January 1, 1959, will no longer be taxable when sold on and after that date. The fact that an article may be called by one of the names appearing in the list of nontaxable articles is not conclusive of its status if, in reality, it is one of the taxable articles enumerated in the statute.

             TAXABLE                          NONTAXABLE
Attache cases                       Beverage bottle carriers
*Bathing suit bags                   Bowling ball bags with or
*Beach bags or kits                    without space for shoes or
*Billfolds                             other wearing apparel.
Boy Scout packs
   Duffel bags #1072, 1073 and 1386
   Official haversack #573
   Official musette bag #1320
   Official yucca bag #574
   Rover pack #1434
                                     Boy Scout packs
                                       Cub pack #1024
                                       Official day hike bag #1225
*Brief cases of any material
*Brief bags of any material
*Camping bags
*Card cases
Carry-all bags
Coin purses
*Collar cases
                                     Comb cases
*Cosmetic bags and kits
                                     Diaper bags
Ditty bags
*Dressing cases
*Dufflebags
*Furlough bags
*Garment bags designed for use by
   travelers
Gladstone bags
*Handbags                            Glove cases
*Hatboxes designed for use by        Handkerchief cases
   travelers
*Haversacks
                                     Hosiery cases
                                     Insulated bags for keeping food
                                       or liquids hot or cold
*Key cases or containers
*Knapsacks
*Knitting bags (suitable for use as
   purses or handbags)
                                     Laundry mailing cases
                                     Lingerie cases
Locker trunks
*Makeup boxes
*Manicure set cases
*Memorandum pad cases (suitable
   for use as card or pass cases,
   billfolds, purses or wallets)
Messenger satchels
                                     Military discharge cases
                                     Mirror cases
Money satchels
*Musette bags
                                     Nail file cases
                                     Nursery bags
*Overnight bags
*Pass cases
*Pocketbooks
Pocket secretary cases
Portmanteaus
*Purses
                                     Raincoat and rain wear cases
Religious vestment cases
*Ring binders of any material
   capable of closure on all sides
Roll-up toilet kits
                                     Saddle bags (including bicycle
                                       and motorcycle saddle bags)
*Salesmen's sample or display
   cases, bags, or trunks
*Satchels
                                     School bags (not otherwise
                                       taxable as briefcases, brief
                                       bags, or ring binders)
*Shoe and slipper bags
*Shopping bags (suitable for use as
   purses or handbags)
                                     Skate cases
*Suitcases
*Tie cases
*Toilet kits and cases
Tote bags
Train cases
*Traveling bags
*Trunks
*Valises
*Vanity bags or cases
*Wallets
*Wardrobe cases

The above lists are not all-inclusive but are merely designed to illustrate the application of the law with respect to sales at retail on and after January 1, 1959. In any case where the classification of a particular article is in question, a specific ruling or a determination thereon should be requested from the Service.