Internal Revenue Service
Revenue Ruling

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 Rev. Rul. 75-16

1975-1 C.B. 340

IRS Headnote

Fifth wheel, bar, and side bracket package. A manufacturer's sales of its prepackaged combination of a fifth wheel, bar, and side brackets designed to be mounted in pickup truck beds for towing house trailers are subject to the tax imposed by section 4061(b)(1) of the Code; its sales of the fifth wheels and bars are not taxable when sold separately or when combined with other parts for use with automobiles, neither are its sales of pin containers with kingpins designed to be welded to the front of goose-neck-type house trailers.

Full Text

Rev. Rul. 75-16

Advice has been requested whether sales by the manufacturer of the articles described below are subject to the manufacturers excise tax on automotive parts or accessories imposed by section 4061(b)(1) of the Internal Revenue Code of 1954.

A company manufactures, combines into a prepackaged kit and sells a fifth wheel, bar, and side brackets. These articles are designed to be mounted in pickup truck beds for towing house trailers. The company also manufactures and sells a pin container with kingpin which is designed to be welded to the front part of the underside of a gooseneck-type house trailer, thus enabling the house trailer to lock into the fifth wheel for towing purposes. The fifth wheel and bar are also packaged separately. The fifth wheel and bar, when sold without the side brackets and combined with certain other parts, are used with passenger automobiles to tow the same house trailers. The fifth wheel or bar are sold separately as replacement parts.

Section 4061(b)(1) of the Code imposes a tax upon parts or accessories (other than tires and inner tubes) for any of the articles enumerated in section 4061(a)(1) when sold by the manufacturer, producer, or importer thereof. Among the articles enumerated in section 4061(a)(1) are truck chassis and bodies.

Section 4061(b)(2) of the Code provides that the tax imposed by section 4061(b) shall not be imposed on 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, any chassis or body for a trailer or semi-trailer suitable for use in connection with a passenger automobile, or a house trailer.

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.

Section 316.4 of Regulations 46 (1940), made applicable to the Code to the extent not inconsistent therewith by T.D. 6091, 1954-2 C.B. 47, provides that a manufacturer who sells a taxable article in a knockdown condition, but complete as to all component parts, is liable for the tax.

Rev. Rul. 73-170, 1973-1 C.B. 431, holds that a bar and fifth wheel attachment designed for use with a pickup truck to tow light trailers is a truck part or accessory subject to manufacturers excise tax. When the present fifth wheel and bar are sold with the side brackets, the combination is designed to be attached to and used in connection with a pickup truck to add to its utility. Therefore, the prepackaged kit of the articles at issue here is a truck part or accessory within the meaning of section 4061(b)(1) of the Code and sales thereof by the manufacturer are subject to the tax imposed by that section.

When the fifth wheel and bar are combined with other parts for use with automobiles, the combination is not subject to manufacturers excise tax. Furthermore, since such fifth wheel and bar are suitable for use with automobiles, they come within the scope of section 4061(b)(2) of the Code. Therefore, the fifth wheel and bar are not taxable when sold separately.

Since the pin container with kingpin is designed to be attached to the house trailer and not to the pickup truck, the pin container and kingpin are not subject to manufacturers excise tax.