Internal Revenue Service
Revenue Ruling

TaxLinks.com   sm

 Rev. Rul. 61-98

1961-1 C.B. 473

Caution: Revoked by Rev. Rul. 76-117

IRS Headnote

Certain so-called `retractable stabilizing or supporting jacks' which are designed to be attached to and used in connection with automobile truck chassis or bodies on which there is mounted special equipment, such as power derricks, ladders, towers, or earth borers, are considered to be automobile parts or accessories within the meaning of section 4061(b) of the Internal Revenue Code of 1954. Therefore, manufacturers' sales of these jacks are subject to the manufacturers excise tax imposed by that section.

Full Text

Rev. Rul. 61-98

Advice has been requested as to whether manufacturers' sales of certain `jacks' are subject to the manufacturers excise tax on automobile parts or accessories.

A manufacturer of certain motor vehicle articles also manufactures and sells various types of so-called `retractable stabilizing or supporting jacks.' These jacks are designed to be permanently attached to either the chassis or the bodies of trucks on which special equipment is to be mounted. Some of them are mechanically operated, and vehicle or from a separate circuit installed with the jacks. Although vehicle or from a separate circuit installed with the jacks. Although these articles are referred to as `jacks,' they are not generally suitable for lifting a vehicle for purposes of changing a tire or putting on chains.

The functions of these jacks are to support and level automobile truck decks on which there is mounted such equipment as power derricks, towers, ladders, or earth borers. The leveling and stabilizing functions of these jacks change the fulcrum point of the trucks when the special equipment is in use, thereby increasing the maximum weight and lift capacity of such equipment.

Section 4061(b) of the Internal Revenue Code of 1954 imposes a tax on the sale by the manufacturer, producer, or importer of parts or accessories (other than tires and inner tubes and other than automobile radio and television receiving sets) for any of the motor vehicle articles enumerated in section 4061(a) of the Code.

Section 40.4061(b)-2(a) of the Manufacturers and Retailers Excise Tax Regulations provides that, in general, the term `parts or accessories' includes (1) any article, the primary use of which is to improve, repair, replace, or serve as a component part of an automobile truck or bus chassis or body, or other automobile chassis or body, or taxable tractor, (2) any article designed to be attached to or used in connection with such chassis, body, or tractor to add to its utility or ornamentation, and (3) any article, the primary use of which is in connection with such chassis, body, or tractor, whether or not essential to its operation or use.

The jacks in the instant case are designed to be attached to and used with taxable automobile truck chassis or bodies. Therefore, these jacks are considered to be automobile parts or accessories within the meaning of section 4061(b) of the Code, and it is held that manufacturers' sales of these jacks are subject to the manufacturers excise tax imposed by that section. Furthermore, when a manufacturer of automobile truck chassis or bodies sells such jacks, which he has either purchased or manufactured, on or in connection with the sale of chassis or bodies, the tax imposed by section 4061(a) of the Code applies to the total sale price of the chassis and bodies including the jacks.