Rev. Rul. 58-537

Advice has been requested whether sales of the items described below are subject to the retailers excise tax on luggage, handbags, etc.

(1) A so-called `truck driver's log book holder' is made from calf finish vinyl and measures 14 inches by nine inches when open and nine inches by six inches when closed with button down snaps. It has a built-in loop to accommodate a pencil, two slits for a six inch plastic rule, two slits for the back of a driver's log book, and one side-opening pocket for receipts, notes, bills, etc.

(2) Another so-called `truck driver's log book holder' is made of pliable vinylite and measures ten and one-half inches by ten inches when open and ten inches by six and one-quarter inches when closed by a four and one-quarter inch flap. It has two open pockets for carrying a log book and other important papers.

(3) A so-called `automobile papers case' is made of pliable vinylite and measures nine and one-half inches by nine and one-half inches when open and nine and one-half by four and three-quarters when closed with a full length pocket opening along the fold.

(4) Another so-called `automobile papers case' measures four by nine and one-half inches in size and resembles an ordinary envelope except that the flap is the full four by nine and one-half inches. It is made from stout highly embossed paper with one full-length compartment opening along the fold.

(5) A so-called `insurance folder' made of leather or imitation leather which measures eleven and one-quarter by five and one-half inches in size when folded. It closes by means of snap fasteners and is equipped with plastic pockets designed for holding and storing insurance policies and other papers.

Section 4031 of the Internal Revenue Code of 1954 imposes a tax upon luggage, handbags, etc., including wallets, billfolds, card, pass, and key cases sold at retail, including in each case fittings or accessories therefor sold on or in connection with the sale thereof.

Articles such as those described above are not suitable for use as wallets, billfolds, card or pass cases. Accordingly, it is held that such items are not subject to the retailers excise tax imposed by section 4031 of the Code.