Internal Revenue Service
Revenue Ruling

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 Rev. Rul. 70-99

1970-1 C.B. 224

IRS Headnote

A "six-wheel attachment" designed for extending the frame of an automobile truck chassis is subject to the manufacturers tax on automotive parts or accessories; S.T. 736 superseded.

Full Text

Rev. Rul. 70-99 /1/

The purpose of this Revenue Ruling is to update and restate, under the current statute and regulations, the position expressed in S.T. 736, C.B. XIII-1, 377 (1934).

The question presented concerns the application of the manufacturers excise tax imposed by section 4061(b)(1) of the Internal Revenue Code of 1954 to sales by manufacturers of the article described below.

A company manufactures and sells an article called a "six wheel attachment." The article consists of an extension for the frame of an automobile truck chassis and supporting springs, axle, and two wheels. It is designed to increase the weight and load capacity of the truck to which it is attached by lengthening the frame and giving the rear of the truck chassis the support of additional wheels and springs.

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. Automobile truck chassis are among the articles enumerated in section 4061(a)(1) of the Code.

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 "six wheel attachment" adds to the utility of an automobile truck chassis, it is an automotive part or accessory as defined in the regulations. Accordingly, it is held that sales of the article by the manufacturer are subject to the manufacturers excise tax imposed by section 4061(b)(1) of the Code.

S.T. 736 is superseded since the position expressed therein is restated under the current law and regulations in this Revenue Ruling.

/1/ Prepared pursuant to Rev. Proc. 67-6, C.B. 1967-1, 576.