Rev. Rul. 65-304

Section 209(c) of the Excise Tax Reduction Act of 1965, Public Law 89-44, page 568, this Bulletin, provides for credits or refunds of excise tax (without interest) (referred to as consumer refunds) to manufacturers of passenger automobiles which were sold to the ultimate purchaser after May 14, 1965, and before June 22, 1965. Revenue Ruling 65-239, below, sets forth guidelines with respect to treatment of demonstrator automobiles for purposes of consumer refunds as well as floor stocks refunds.

In amplification of that Revenue Ruling, where a passenger automobile purchased from the manufacturer by a dealer before May 15, 1965, and put to use as a demonstrator prior to June 22, 1965, is sold by the dealer to a consumer after May 14, 1965, and before June 22, 1965, the consumer refund is available to the consumer provided the vehicle was sold to him as a new automobile rather than a used one. The fact that the automobile was sold as a new vehicle rather than a used one may be established by the dealer showing that, on the date of sale, the vehicle was labeled and warranted as stated in situation (3) of the Revenue Ruling or by any other acceptable evidence.

Revenue Ruling 65-239 is hereby amplified.