Internal Revenue Service
Revenue Ruling

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 Rev. Rul. 73-23

1973-1 C.B. 428

IRS Headnote

The manufacturers tax does not apply to a hydraulically operated lift device that is primarily used to lift persons confined to wheelchairs into van type passenger vehicles.

Full Text

Rev. Rul. 73-23

Advice has been requested whether the article described below is subject to the manufacturers excise tax imposed on automotive parts and accessories by section 4061(b)(1) of the Internal Revenue Code of 1954.

A company manufactures a hydraulically operated lift device with a pivotal elevator platform designed to be attached to a van type highway vehicle. When not in use, the device is so designed that it may be folded compactly into the vehicle.

The device is primarily used to lift persons confined to wheelchairs into van type vehicles. However, it is also used in connection with truck type vans as an aid in loading and unloading such items as refrigerators and TV sets. When used to assist persons confined to wheelchairs, it is usually attached to a passenger type van that does not contain the normal complement of passenger seats, so as to provide room to accommodate the wheelchair.

Section 4061(a)(1) of the Code imposes a manufacturers excise tax on certain enumerated articles, including automobile truck chassis and bodies.

Section 4061(b)(1) of the Code imposes a manufacturers excise tax on parts or accessories for articles enumerated in section 4061(a).

Section 4061(b)(2) of the Code provides that the tax imposed by section 4061(b)(1) shall not apply to any part or accessory that is "suitable for use (and ordinarily is used) on or in connection with, or as a component part of, any chassis or body for a passenger automobile, and chassis or body for a trailer or a semitrailer suitable for use with a passenger automobile, or a house trailer."

As indicated above, the described lifting device is designed for use only with truck type vans, or passenger type vans without the normal complement of seats for passengers. However, for purposes of section 4061(b)(2) of the Code the latter type vans are considered to be "passenger automobiles" despite the fact that they are not equipped with the normal complement of seats for passengers. Since the use of the device with this type of passenger vehicle is common and extensive, it is held that it is "suitable for use (and is ordinarily used)" with passenger automobiles within the meaning of section 4061(b)(2) of the Code, and is, therefore, not subject to the tax imposed by section 4061(b)(1).