Internal Revenue Service
Revenue Ruling

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 Rev. Rul. 72-31

1972-1 C.B. 337

IRS Headnote

Mini-bike tires are subject to the manufacturers tax of 10 cents a pound imposed by section 4071(a)(1) of the Code.

Full Text

Rev. Rul. 72-31

Advice has been requested regarding application of the manufacturers excise tax imposed by section 4071(a)(1) of the Internal Revenue Code of 1954, on tires held out and sold for use on mini-bikes.

These tires are pneumatic rubber tires and generally range in size from 3.50 x 4 to 4.10 x 10. The tires are of a type that are used on camper, boat, baggage, and other special type trailers in highway service.

Section 4071(a)(1) of the Code imposes a tax of ten cents a pound upon tires of the type used on highway vehicles, if wholly or in part of rubber, sold by the manufacturer, producer, or importer. Subsection (a)(2) of the Code imposes a tax of five cents a pound upon other tires (other than laminated tires).

Section 48.4072-1(c)(1) of the Manufacturers and Retailers Excise Tax Regulations defines the term "tires of the type used on highway vehicles" as including (i) all tires of the type which are used on motor vehicles which are highway vehicles including but not limited to motor trucks, buses, passenger automobiles, highway tractors, trolley buses or coaches, and motorcycles, and (ii) all tires of the type which are used on vehicles of the type used in connection with highway motor vehicles including but not limited to truck or bus trailers and truck semitrailers.

Revenue Ruling 57-218, C.B. 1957-1, 369, holds that the determination of which rate of the manufacturers excise tax on tires applies depends upon the "type" of tires and not upon the actual use for which the tires are sold.

Since in addition to their use on mini-bikes the above-described tires are also used on highway-type trailers, they are tires of the type used on highway vehicles. Accordingly, it is held that they are subject to the tax of 10 cents a pound imposed by section 4071(a)(1) of the Code.