Internal Revenue Service
Revenue Ruling
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smRev. Rul. 67-19
1967-1 C.B. 293
IRS Headnote
The manufacturers excise tax on motor vehicle articles, imposed by section 4061(a)(1) of the Internal Revenue Code of 1954, applies to that portion of the sale price of an `asphalt softener trailer' attributable to the trailer chassis.
Full Text
Rev. Rul. 67-19
Advice has been requested concerning the applicability of the manufacturers excise tax on motor vehicle articles to sales by the manufacturer of the `asphalt softener trailer' described below.
A company manufactures and sells an `asphalt softener trailer' for use in the repair and maintenance of asphalt surfaces. The article consists of a steel chassis frame mounted on a rear axle wheel assembly and a single front wheel, and an insulated `hot box,' which contains liquefied petroleum gas burners, attached to the chassis frame.
The article will ordinarily be towed by a truck or similar vehicle to the section of asphalt surface in need of repair. It will them be unhooked and left at the job site until the work is completed. The unit is small enough to be operated by one man who pushes it into position over the section of surface to be repaired. The `hot box' is then lowered into position, the fires lighted, and the appliance allowed to remain for several minutes. This softens the asphalt and it is then in condition to be raked and tamped down.
Section 4061(a)(1) of the Internal Revenue Code of 1954 imposes a tax upon the sale by the manufacturer, producer, or importer of certain enumerated motor vehicle articles, including truck and bus trailer and semitrailer chassis and bodies.
Section 48.4061(a)-1(e)(1) of the Manufacturers and Retailers Excise Tax Regulations provides, in part, that a trailer of semitrailer chassis or body primarily designed for highway use in combination with a taxable truck, bus, or tractor is subject to the tax imposed by section 4061(a)(1) of the Code. The tax attaches even though the trailer or semitrailer may have equipment to perform functions other than in connection with the transportation of property or persons. However, no tax under section 4061(a) of the Code attaches to that part of the selling price of the complete unit which is reasonably attributable to such equipment provided such part of the selling price is billed separately on the invoice to the customer or can be otherwise established by adequate records. 233, holds, in part, that certain holds, in part, that certain two- and four-wheel mountings or undercarriages which are designed, constructed, and sold for use in transporting various items of equipment, such as air compressors, arc welders, and pumps are considered to be truck trailer or semitrailer chassis within the meaning of section 4061(a)(1) of the Code. Each undercarriage is intended to provide mobility for the item of equipment which is to be bolted or otherwise attached to an identifiable chassis frame which is an integral part of the undercarriage.
Similarly, the undercarriage and frame of the `asphalt softener trailer' constitutes a trailer chassis under the rationale of Revenue Ruling 62-118. Furthermore, the trailer chassis is primarily designed and constructed to transport property over the highways in combination with a taxable truck. The asphalt heating apparatus is considered to be equipment `which performs a function other than in connection with the transportation of property or persons' within the meaning of section 48.4061(a)-1(e)(1) of the regulations.
Therefore, the manufacturers excise tax imposed by section 4061(a)(1) of the Code applies to that portion of the sale price of the `asphalt softener trailer' attributable to the trailer chassis. No tax under section 4061(a) of the Code attaches to that part of the selling price of the complete unit attributable to the asphalt heating apparatus provided that such part of the selling price is billed separately on the invoice to the customer or can be otherwise established by adequate records.