Internal Revenue Service
Revenue Ruling

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 Rev. Rul. 64-81

1964-1 C.B. 387

Caution: Obsoleted by Rev. Rul. 69-227

IRS Headnote

`Tag marking' machines which indent or impress characters into the surface of metal or plastic tags are not considered to be embossing machines within the meaning of section 4191 of the Internal Revenue Code of 1954. Furthermore, even though some of these machines are equipped with keyboards and are operated in a manner similar to typewriters, they are not considered to be typewriters within the meaning of that section. Therefore, these tag marking machines are not subject to the manufacturers excise tax imposed on embossing machines and typewriters by section 4191 of the Code.

Full Text

Rev. Rul. 64-81

Advice has been requested whether the articles described below are subject to the manufacturers excise tax imposed by section 4191 of the Internal Revenue Code of 1954.

A company manufactures and sells several types of `tag marking' machines, which are designed to make indentations or impressions of letters and numbers in metal or plastic tags or nameplates. In addition to serving an identification purpose with respect to motors or other products, the tags or plates may contain condensed specifications, operating instructions, etc.

One type of tag marking machine is equipped with a keyboard which resembles a typewriter keyboard in appearance and manner of operation. However, the impressions are made in metal by means of interchangeable wheels. The impression depth is adjustable for tags of varying thicknesses and metals of different hardness. This electrically operated machine is capable of forming up to 100 characters per minute.

Another type of tag marking machine, which is produced in both a motorized and a manually operated model, has a rotating selector knob for individual selection and impression of a letter or number.

The company also produces high-speed types of electrical tag markers for constant data and serial numbering. One of these machines handles tags measuring up to four inches by four inches and indents or impresses up to 8,000 tags per hour. This machine is designed to automatically feed, mark, and stack the tags consecutively. Another machine handles tags measuring up to six inches by six inches and indents or impresses by rolling rather than by impact. This machine handles up to 3,600 tags per hour and holds single stamps, logotypes, or automatic wheel-type number stamps.

Section 4191 of the Code imposes a tax upon the sale by the manufacturer, producer, or importer of certain enumerated articles, including `embossing machines' and `typewriters.'

An embossing machine is a machine which produces raised characters on the surface of metal, plastic, paper, etc. The tag marking machines described above produce indented characters as distinguished from raised characters. Accordingly, they are not considered to be embossing machines within the meaning of section 4191 of the Code. Furthermore, even though some of the machines are equipped with keyboards and are operated in a manner similar to typewriters, they are not considered to be typewriters within the meaning of that section.

Therefore, it is held that the tag marking machines described above are not subject to the manufacturers excise tax imposed upon embossing machines and typewriters by section 4191 of the Code.