Rev. Rul. 58-362

Advice has been requested whether the manufacturers excise tax on electric, gas, and oil appliances applies to the sale by a manufacturer of a ventilation system designed to exhaust hot air rising from residential type, built-in ovens. The ventilation system, which is normally mounted in the cabinet over the built-in oven, consists of a blower and housing assembly, a duct and switch assembly, and a hood and filter assembly.

Section 4121(a) of the Internal Revenue Code of 1954 imposes a tax upon the sale by the manufacturer, producer, or importer of various electric, gas, and oil appliances of the household type (including in each case parts or accessories therefor sold on or in connection with the sale thereof). Included therein are `electric exhaust blowers.'

It is held that the tax imposed under section 4121(a) of the Code is applicable to the blower and housing assembly portion of the ventilation system described above. However, the tax is not applicable to the duct and switch assembly or the hood and filter assembly since such articles, while being accessories of the exhaust system, are not considered accessories of the electric exhaust blower within the meaning of section 4121(a) of the Code. For the purpose of computing the tax due, a selling price may be assigned to the taxable portion of the ventilation system which bears the same ratio to the selling price of the complete system as the cost of the taxable portion bears to the cost of the complete system. For example, if the cost of the blower and housing assembly is one-third of the cost of the entire system, tax will attach to one-third of the sale price of such ventilation system.