Rev. Rul. 60-198

Advice has been requested concerning the applicability of the manufacturers excise tax on sporting goods to certain billiard balls and cues which are sold exclusively to manufacturers of coin-operated amusement devices or games.

A company manufactures billiard balls of various sizes and specifications. All of the balls are primarily designed for use on billiard and pool tables measuring 45 inches overall or more in length. Some of the balls, however, are marked with dots or symbols and are sold only to manufacturers of coin-operated amusement devices or games.

The company also manufactures cues of various lengths. One cue is a regulation cue and is sold exclusively for use with taxable billiard tables of regulation size. Another cue, which is shorter in length, is sold for use with taxable home billiard tables. A third cue of even shorter length is produced for an sold exclusively to manufacturers of coin-operated amusement devices. However, other cue manufacturers produce a cue which is similar to the shortest cue described above and sell such cue as a junior cue for use on taxable billiard and pool tables.

Section 4161 of the Internal Revenue Code of 1954 imposes a tax upon the sale by the manufacturer, producer, or importer of certain sporting goods including billiard and pool tables measuring 45 inches overall or more in length, and balls and cues for such tables.

It is held that the sale of any balls and cues, which are of the type primarily designed for use on taxable billiard and pool tables, is subject to the manufacturers excise tax on sporting goods irrespective of the size of such balls and cues or of any special markings on them and regardless of the use for which they are sold. All of the balls and cues mentioned above are of the type primarily designed for use on taxable tables and are accordingly subject to the tax when sold by the manufacturer even though some of them are sold exclusively to manufacturers of coin-operated amusement devices and are marked so as to be distinguished from the others.