Rev. Rul. 58-585

Advice has been requested concerning the applicability of the manufacturers excise tax on parts or accessories for motor vehicles to sales of certain `helper' or `overload' coil springs.

A manufacturer sells two types of coil springs which are designed to give additional support to, and to increase the load capacity of, springs used on passenger automobiles and light trucks. One type is designed and adapted for use as a permanent attachment on passenger automobiles and light trucks to brace-up their sagging springs. The other type is designed and adapted for use on passenger automobiles, is not permanently attached to the vehicles, and can not be used to replace the regular automobile springs because it is too rigid. This type of coil spring is used to increase the load capacity of the springs on passenger automobiles when the automobiles are towing trailers or carrying heavy loads. Both types of coil springs are helical shaped, made of extra heavy duty wire, and are designed to fit into a saddle which is attached to the vehicles by means of a U -clamp.

Section 4061(a) of the Internal Revenue Code of 1954 imposes a tax on the sale by the manufacturer, producer, or importer of certain motor vehicle articles. Paragraph (1) enumerates chassis and bodies for automobile trucks, automobile buses, and truck and bus trailers and semitrailers, as well as tractors of the kind chiefly used for highway transportation in combination with a trailer or semitrailer. Paragraph (2) enumerates chassis and bodies for other automobiles and certain trailers and semitrailers suitable for use in connection with passenger automobiles.

Section 4061(b) of the Code imposes a tax on the sale by the manufacturer, producer, or importer of parts or accessories, with certain exceptions not here material, for any of the articles enumerated in section 4061(a). Section 316.55 of Regulations 46, made applicable to the 1954 Code by Treasury Decision 6091, C.B. 1954-2, 47, provides that the term `parts or accessories' for automobile truck or other automobile chassis or body includes (1) any article the primary use of which is to improve, repair, replace, or serve as a component part of such vehicle or article, (2) any article designed to be attached to or used in connection with such vehicle or article to add to its utility or ornamentation, and (3) any article the primary use of which is in connection with such vehicle or article whether or not essential to its operation or use.

It is immaterial whether the coil springs, in the instant case, may or may not be permanently attached to passenger automobiles or light trucks. Since they are primarily designed and adapted for use on taxable motor vehicles, it is held that these coil springs are parts or accessories for articles taxable under section 4061(a) of the Code. Therefore, they are subject to the manufacturers excise tax imposed by section 4061(b) of the Code when sold by the manufacturer.