Rev. Rul. 60-391

Advice has been requested whether the manufacturers excise tax on motor vehicle articles applies to sales by the manufacturer of the motor vehicles described below.

A manufacturer produces and sells various models of three-wheel commercial motor vehicles which are designed for light hauling. These vehicles are produced in a variety of body styles; however, the chassis are substantially alike.

Typical of these vehicles is a so-called `pickup' model. The chassis of this model vehicle has a four-cycle, one-cylinder, air-cooled engine and a power train consisting of a disc clutch, a three-speed transmission, and a shaft drive connected to an automotive-type differential. The chassis has two rear wheels on an automotive-type axle. The steering apparatus consists of handlebars and a shaft which is attached directly to a fork in which a single front wheel is mounted.

Mounted on the chassis of this vehicle is an all-steel pickup type body which has a rated load capacity of 800 pounds. On the forward portion of the chassis is a fibre glass cab with open sides to permit easy entrance and exit by the driver. The vehicle is approximately eight feet long and four feet wide and is equipped with a single headlight and a single taillight. The maximum speed attainable is about 35 miles per hour.

Section 4061(a)(1) of the Internal Revenue Code of 1954 imposes a tax upon the sale by the manufacturer, producer, or importer of certain enumerated motor vehicle articles, including automobile truck chassis and bodies. This section further provides that the sale of an automobile truck shall be considered to be a sale of the chassis and of the body.

For purposes of the manufacturers excise tax, the fact that a vehicle has less than four wheels or that it has some of the other characteristics of a motorcycle does not of itself place the vehicle outside the scope of the articles taxable under section 4061(a) of the Code. See Rev. Rul. 58-284, C.B. 1958-1, 400, and Rev. Rul. 58-488, C.B. 1958-2, 764.

The predominant characteristics of the vehicles described above are those of an automobile truck, within the meaning of section 4061(a)(1) of the Code. Accordingly, the `pickup' model and other vehicles which are similar in design, construction, and purpose are considered to be automobile trucks for purposes of the manufacturers excise tax imposed by section 4061(a)(1) of the Code. It is therefore held that sales of such vehicles by the manufacturer are subject to the tax on automobile truck chassis and bodies imposed by that section.

Under the authority of section 7805(b) of the Code, this Revenue Ruling will not be applied to sales made prior to January 1, 1961. Moreover, no manufacturers excise tax liability will be incurred with respect to sales of these vehicles pursuant to firm contracts entered into as a result of bids made prior to that date even though the vehicles are delivered on or after January 1, 1961.

¹ Also released in Technical Information Release 279, dated December 20, 1960.