Internal Revenue Service
Revenue Ruling

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 Rev. Rul. 64-35

1964-1 C.B. 377

IRS Headnote

`Spark plug terminal protectors' designed to be attached to and primarily used in connection with taxable motor vehicle articles are automobile `parts or accessories' as defined by section 48.4061(b)-2(a) of the Manufacturers and Retailers Excise Tax Regulations. Therefore, these articles are subject to the manufacturers excise tax on automobile `parts or accessories,' imposed by section 4061(b) of the Internal Revenue Code of 1954, when sold by the manufacturer.

Revenue Ruling 282, C.B. 1953-2, 425, revoked.

Full Text

Rev. Rul. 64-35

Advice has been requested concerning the applicability of the manufacturers excise tax on automobile `parts or accessories' to the articles described below when sold by the manufacturer.

A company manufactures and sells `spark plug terminal protectors' for internal combustion engines of the type used in automobiles, trucks, and tractors, as well as in various other articles. The terminal protectors, which are made of synthetic rubber, are designed to fit the standard ignition wire cable terminals (either straight or angled) and to cover the insulated body shell of the spark plugs.

The manufacturer's advertising states that the spark plug terminal protectors will exclude moisture and dirt; eliminate all air spaces and the possibility of electric shock and current flashes; reduce fire hazards; improve radio reception; and firmly grip and maintain a contact between the conductor cable and the spark plug terminal. The primary use of these articles is in connection with taxable motor vehicles.

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 articles enumerated in section 4061(a) of the Code.

Section 48.4061(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 spark plug terminal protectors described above are designed to be attached to and used in connection with motor vehicle articles enumerated in section 4061(a) of the Code to add to their utility. Moreover, the primary use of the protectors is in connection with such motor vehicle articles. Therefore, these protectors are automobile `parts or accessories' within the meaning of section 48.4061(b)-2(a) of the regulations.

Accordingly, it is held that these spark plug terminal protectors are subject to the manufacturers excise tax on automobile `parts or accessories,' imposed by section 4061(b) of the Code, when sold by the manufacturer.

The Internal Revenue Service previously considered spark plug terminal protectors as not being subject to the manufacturers excise tax on automobile `parts or accessories.' Therefore, under the authority of section 7805(b) of the Code, this Revenue Ruling will not be applied to sales made prior to March 1, 1964.

Revenue Ruling 282, C.B. 1953-2, 425, is hereby revoked.