Internal Revenue Service
Revenue Ruling

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 Rev. Rul. 72-39

1972-1 C.B. 333

IRS Headnote

A combination container-loader device designed to be mounted on a truck chassis and used primarily for hauling dry fertilizer to and on farms is exempt from the tax imposed by section 4061 of the Code.

Full Text

Rev. Rul. 72-39

A company manufactures a combination container-loader device which is designed to be mounted on a truck chassis to carry dry fertilizer on the highway from a warehouse to a farm. The device consists of one or more hydraulically operated hoppers specially designed to carry the fertilizer to a farm and load it into a specially designed mechanical bulk applicator. It is unique in that the hoppers are hinged at the top to permit tilting of the hopper to load the fertilizer directly into the applicator. The overall design of the container-loader makes it impractical for use other than hauling fertilizer to and on the farm and for use other than with a compatibly designed bulk applicator.

Held, since the container-loader device is primarily designed to haul fertilizer to and on farms, it comes within the scope of the exemption provided by section 4063(a)(2)(B) of the Internal Revenue Code of 1954. Sales of the device are, therefore, not subject to the tax imposed by section 4061 of the Code.

For a similar conclusion, see Revenue Ruling 69-579, C.B. 1969-2, 200, which sets forth certain criteria for determining whether a truck body comes within the exemption provided by section 4063(a)(2)(B) of the Code.