Internal Revenue Service
Revenue Ruling

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 Rev. Rul. 59-46

1959-1 C.B. 306

Caution: Supplemented by Rev. Rul. 59-289

IRS Headnote

Where an automobile truck tank and trailer tank body manufacturer sells so-called `manhole covers' on or in connection with taxable tank bodies, the manufacturers excise tax imposed by section 4061(a)(1) of the Internal Revenue Code of 1954 attaches to the entire price for which the covers and bodies are sold. Where a manufacturer sells manhole covers separately, the manufacturers excise tax on parts or accessories imposed by section 4061(b) of the Code attaches to the price for which the covers are sold. Full Text

Rev. Rul. 59-46

Advice has been requested concerning the applicability of the manufacturers excise tax on automobile parts or accessories to sales by the manufacturer of so-called `manhole covers' for tank bodies for certain automobile trucks or trailers, such as, the tank bodies for bulk milk-hauling vehicles.

Section 4061(b) of the Internal Revenue Code of 1954 imposes a tax upon sales by the manufacturer, producer, or importer of parts or accessories (with certain exceptions not here material) for any of the articles enumerated in section 4061(a) of the Code. Automobile truck bodies and truck trailer and semitrailer bodies are among the articles enumerated in section 4061(a) of the Code.

Section 316.55 of Regulations 46, made applicable to the 1954 Code by Treasury Decision 6091, C.B. 1954-2, 47, provides that the term `parts or accessories' for an automobile truck or other automobile chassis or body includes (1) any article the primary use of which is to improve, repair, replace, or serve as a component part of such vehicle or article, (2) any article designed to be attached to or used in connection with such vehicle or article to add to its utility or ornamentation, and (3) any article the primary use of which is in connection with such vehicle or article whether or not essential to its operation or use.

Since the manhole covers, in the instant case, are constructed primarily for use on automobile truck tank and trailer tank bodies, it follows that such covers are parts or accessories for such bodies. Accordingly, it is held that when a body manufacturer sells manhole covers on or in connection with taxable tank bodies, the manufacturers excise tax imposed by section 4061(a)(1) of the Code attaches to the entire price for which the covers and bodies are sold. Where a manufacturer sells the covers separately, the manufacturers excise tax on parts or accessories imposed by section 4061(b) of the Code attaches to the price for which the covers are sold.

Since the previous position of the Internal Revenue Service as to the applicability of the tax to sales of the manhole covers described above has not been consistent with the conclusion set forth above, and by virtue of the authority contained in section 7805(b) of the Code, this Revenue Ruling will be applied only to sales made on and after March 1, 1959.