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Revenue Ruling

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 Rev. Rul. 67-56

1967-1 C.B. 295

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Rev. Rul. 67-56

Revenue Ruling 65-317, C.B. 1965-2, 422, holds that a resident of the United States who purchases a foreign-made automobile under conditions described therein is the importer of the vehicle for purposes of imposition of the manufacturers excise tax under sections 4061(a)(2) and 4218(a) of the Internal Revenue Code of 1954. Revenue Ruling 66-66, C.B. 1966-1, 252, amplifies Revenue Ruling 65-317 to hold that tax in such cases is to be computed on the total cost of acquisition of the vehicle at the time of taxable use. The specific question presented herein is whether State and local use taxes and fees paid for registration or license tags under State law are acquisition costs of the type required to be included in the tax base. Held , the term `total cost of acquisition', as defined in Revenue Ruling 66-66, does not include such State and local taxes or fees required to be paid for the privilege of operating an automobile on State highways. Acquisition costs described in Revenue Ruling 66-66 are those elements of costs incurred by the importer in connection with importing and taking possession or control of a foreign-made automobile.

Revenue Ruling 66-66 is hereby clarified.