Rev. Rul. 61-116

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

A retailer sells a receptacle which is designed for use in a dresser drawer for storing jewelry. It also may be carried within a traveling case. The receptacle is made of multi-colored striped material lined with velvet. It measures eight inches by six inches by one and three-fourths inches when closed by means of a zipper on three sides. The inside is equipped with a large compartment on each side. Stitched to the outside of each compartment is a piece of clear plastic which forms small pockets for storing or carrying individual pieces of jewelry. It is also equipped with two cord loops at the top for hanging or carrying.

Section 4031 of the Internal Revenue Code of 1954 imposes a tax upon certain enumerated articles, by whatever name called, sold at retail.

The receptacle for jewelry described above is not one of the articles enumerated in section 4031 of the Code. Accordingly, sales of this article are not subject to the retailers excise tax on luggage, handbags, etc., imposed by that section of the Code.