Internal Revenue Service
Revenue Ruling

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 Rev. Rul. 73-50

1973-1 C.B. 435

IRS Headnote

Definition of the cross-section of a tire for purposes of the exemption from tax provided by section 4073(a) of the Code.

Full Text

Rev. Rul. 73-50

Advice has been requested as to the proper method for measuring the "cross-section" of a tire, for purposes of the manufacturers excise tax exemption provided by section 4073(a) of the Internal Revenue Code of 1954.

Section 4071(a) of the Code imposes a tax on the sale by the manufacturer, producer, or importer of various tires, inner tubes for tires, and tread rubber.

Section 4073(a) of the Code provides that the tax imposed by section 4071 shall not apply to tires that are not more than 20 inches in diameter and not more than 13/4 inches in cross-section, if such tires are of all-rubber construction (whether hollow center or solid) without fabric or metal reinforcement.

Held, for purposes of the exemption provided by section 4073(a) of the Code, the cross-section of a tire is a measure of the tire's thickness (including hollow center, if any) from side to side at its widest point, on a line parallel to the axle of the wheel or caster on which the tire is normally mounted, assuming the wheel or caster is in position perpendicular to the axle.