Rev. Rul. 58-184

Advice has been requested whether the manufacturers excise tax applies to the sale of an automobile purchased by a veteran under the provisions of the Act of October 2-0, 1951, Public Law 187, 82nd Congress, 65 Stat. 574, 38 U.S.C. 252.

Section 4061(a)(2) of the Internal Revenue Code of 1954 imposes a tax on the sale of automobiles by manufacturers, producers, or importers thereof. Public Law 187 provides that the Administrator of Veterans' Affairs is authorized and directed, under such regulations as he shall prescribe, to provide or assist in providing, for any veteran described therein, an automobile or other conveyance by paying not to exceed $1,600 on the purchase price. Public Law 187 does not provide an exemption from the manufacturers excise tax on sales of automobiles for this purpose. Furthermore, there is no provision of the Internal Revenue Code which would authorize exemption of such sale.

Since there is no statutory provision authorizing exemption, it is held that the manufacturers excise tax applies to the sale of an automobile purchased by a veteran with funds made available by Public Law 187.