Rev. Rul. 61-209

Advice has been requested concerning the applicability of the manufacturers excise tax on automobile parts or accessories to sales of the articles described below.

A company manufactures and sells several types of tissue dispensers which are widely used in automobiles. Each of these plastic dispeners is designed to hold a box or a package of absorbent paper facial tissues. Some of the dispensers are designed to be attached to an automobile sun visor. Others are designed to be attached directly to some other part of an automobile. Some of them are designed with an extra compartment at the bottom for the disposal of used tissues.

Although these articles are sold primarily through automotive channels and it is generally recognized that they are used primarily in connection with automobiles, they also are advertised for use in homes, offices, shops, or boats.

Section 4061(b) of the Internal Revenue Code of 1954 imposes a tax on the sale by the manufacturer, producer, or importer of parts or accessories (other than tires and inner tubes and other than automobile radio and television receiving sets) for any of the motor vehicle articles enumerated in section 4061(a) of the Code.

Section 40.4061(b)-2(a) of the Manufacturers and Retailers Excise Tax Regulations provides that, in general, the term `parts or accessories' includes (1) any article, the primary use of which is to improve, repair, replace, or serve as a component part of an automobile truck or bus chassis or body, or other automobile chassis or body, or taxable tractor, (2) any article designed to be attached to or used in connection with such chassis, body, or tractor to add to its utility or ornamentation, and (3) any article, the primary use of which is in connection with such chassis, body, or tractor, whether or not essential to its operation or use.

The tissue dispensers described above are designed for use in automobiles even though they may also be used in other places. Accordingly, the manufacturer's sales of these articles are subject to the manufacturers excise tax on parts and accessories imposed by section 4061(b) of the Code.

Pursuant to the authority contained in section 7805(b) of the Code, this ruling will be applied only to sales made on or after January 1, 1962.