Internal Revenue Service
Revenue Ruling

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 Rev. Rul. 63-34

1963-1 C.B. 210

Caution: Obsoleted by Rev. Rul. 77-389

IRS Headnote

Boat tie-down straps which are designed for use in connection with taxable boat trailers to hold or secure boats to such trailers are considered to be automobile `parts or accessories' within the meaning of section 4061(b) of the Internal Revenue Code of 1954. Accordingly, sales of these boat tie-down straps by the manufacturer thereof are subject to the manufacturers excise tax imposed by that section of the Code.

Full Text

Rev. Rul. 63-34

Advice has been requested concerning the applicability of the manufacturers excise tax on automobile `parts or accessories' to the manufacturer's sales of `boar tie-down straps.'

Various companies manufacture and sell boat tie-down straps which are designed for use in securing boats to boat trailers or to other objects such as boatyard cradles. A typical example of these straps is one made of treated pre-shrunk nylon webbing. This type of strap has a specially designed neoprene shock ring and a release adjustment to provide for tension or release as desired. The ends of each strap are equipped with so-called `on-and-off' snaps for attachment purposes.

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.

Boat tie-down straps of the type herein described are designed to be used in connection with taxable boat trailers to hold or secure boats on such trailers. Moreover, it is considered that this is the primary use of the straps. Thus, the boat tie-down straps are automobile `parts or accessories' within the meaning of section 4061(b) of the Code and section 40.4061(b)-2(a) of the regulations. Accordingly, it is held that sales of these boat tie-down straps by the manufacturer thereof are subject to the manufacturers excise tax imposed by that section of the Code.