Internal Revenue Service
Revenue Ruling

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 Rev. Rul. 69-84

1969-1 C.B. 282

IRS Headnote

Racks, with endgates, designed to slide into or to be fastened to the body of pickup trucks are "parts or accessories" within the meaning of section 4061(b)(1) of the Code.

Full Text

Rev. Rul. 69-84

Advice has been requested whether sales by the manufacturer of the articles described below are subject to the manufacturers excise tax imposed by section 4061(b)(1) of the Internal Revenue Code of 1954.

The articles in question are tubular metal or wooden racks, with endgates, designed to slide into or to be fastened to the body of automobile pickup trucks. The racks extend various heights above the conventional low body of the truck. The endgate rack opens for loading and on some models can be folded to form a chute that facilitates the loading or unloading of livestock. The racks make possible the transportation of livestock and miscellaneous bulky products in pickup truck bodies that normally could not carry such items. Section 4061(b)(1) of the Code imposes a tax on parts or accessories (other than tires and inner tubes) for any article enumerated in section 4061(a)(1) sold by the manufacturer, producer, or importer. Enumerated in section 4061(a)(1) of the Code are chassis and bodies for trucks and buses, and for truck and bus trailers and semitrailers. Also enumerated are tractors of the kind chiefly used for highway transportation in combination with a trailer or semitrailer.

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 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.

Since the racks (with endgates) described above serve to increase the load carrying capacity of pickup truck bodies, they add to the utility of the bodies. Accordingly, the racks are automotive "parts or accessories" within the meaning of section 4061(b)(1) of the Code, and sales of the racks by the manufacturer are subject to the tax imposed by that section.