Internal Revenue Service
Revenue Ruling

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 Rev. Rul. 68-51

1968-1 C.B. 462

IRS Headnote

Rotary positive blowers for the pneumatic conveying of bulk materials are automotive `parts or accessories' within the meaning of section 4061(b) of the Internal Revenue Code of 1954 where they are combined by the manufacturer with mounting kits or brackets which adapt them for use on taxable motor vehicles. Accordingly, such blowers are subject to the manufacturers excise tax imposed by that section.

Revenue Ruling 63-2, C.B. 1963-1, 192, amplified.

Full Text

Rev. Rul. 68-51

Advice has been requested concerning the applicability of the manufacturers excise tax on automotive `parts or accessories' to sales by the manufacturer of rotary positive blowers.

A company manufactures and sells rotary positive blowers for the pneumatic conveying of various bulk materials. Because of their light weight, capacity, and minimum space requirement all models of the blowers are suited for mobile application as well as stationary industrial applications. However, the manufacturer combines some of the blowers with mounting kits or brackets which specifically adapt such blowers for use on taxable motor vehicle articles for unloading purposes. Some of the blower models are for power take-off drive; others come with an auxiliary engine as a unit. While the company in the instant case uses rotary blowers in the pneumatic unloading device, other manufacturers use different means, such as turbosuper-chargers, to accomplish the same result.

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) for any of the articles enumerated in section 4061(a)(1) of the Code, except that no tax shall be imposed upon any part or accessory which is suitable for use (and ordinarily is used) on or in connection with, or as a component part of, any article enumerated in section 4061(a)(2) or a house trailer. Section 48.4061(b)-2(a) of the Manufacturers and Retailers Excise Tax Regulations provides, in part, that the term `parts or accessories' includes any article designed to be attached to or used in connection with an automobile truck chassis or body to add to its utility or ornamentation.

Revenue Ruling 63-2, C.B. 1963-1, 192, holds that certain described loading and unloading devices are `parts or accessories' within the meaning of section 4061(b) of the Code. The devices described include a pneumatic `unloading attachment' designed to be attached to bulk transport bodies. Such attachment is powered by means of a power take-off unit or an auxiliary engine, and consists mainly of a rotary air lock, a blower, and the necessary hoses, etc.

Rotary positive blowers combined with mounting kits or brackets by which they are attached to taxable motor vehicle articles to add to the utility thereof, are parts of a pneumatic `unloading attachment' of the type held taxable in Revenue Ruling 63-2. Accordingly, sales of such blowers by the manufacturer thereof are subject to the manufacturers excise tax imposed by section 4061(b) of the Code.

On the other hand, rotary positive blowers which do not have parts specifically adapting them for use on  taxable motor vehicle articles, or which have parts adapting the blowers to uses other than in connection with motor vehicle articles, are considered to be articles of general use or application. Such blowers are not subject to the tax imposed by section 4061(b) of the Code.

For purposes of the manufacturers excise tax, it is immaterial whether a pneumatic unloading attachment designed to be attached to taxable motor vehicle articles employs a blower, turbosupercharger, or any other similar equipment to accomplish pneumatic unloading.

Revenue Ruling 63-2 is hereby amplified.