Rev. Rul. 59-246

In view of changing developments in the power lawn mower industry, the Internal Revenue Service has reconsidered the position set forth in Revenue Ruling 116, C.B. 1953-1, 465, regarding what constitutes a power lawn mower `of the household type.'

Section 4121 of the Internal Revenue Code of 1954 imposes a tax upon the sale by the manufacturer, producer, or importer of certain enumerated articles of the household type, including power lawn mowers. Revenue Ruling 116 holds that power lawn mowers of the household type include those with a cutting width of less than 24 inches, unless the mower by reason of its design and construction is primarily adapted for another purpose, such as mowing golf greens.

The cutting width of power lawn mowers does not, of itself, determine whether they are of the household type. However, the situation in the industry at the time Revenue Ruling 116 was published led to the adoption of the presumption that, in the absence of evidence to the contrary, all power lawn mowers with a cutting width of less than 24 inches were of the household type.

A recent survey of the industry indicates a definite trend toward the manufacture and sale specifically for household use of power lawn mowers with larger cutting widths. It is recognized, of course, that there still are some mowers which, irrespective of cutting width, are primarily adapted for purposes other than household use.

Accordingly, based upon the present situation in the industry, it is held that power lawn mowers of the household type, within the meaning of section 4121 of the Code, include those which have a cutting width of less than 30 inches, unless by reason of their design and construction they are primarily adapted for other than household use, such as institutional use or use on golf courses.

The above conclusion represents a change in the position set forth in Revenue Ruling 116; therefore, under the authority contained in section 7805(b) of the Code, this Revenue Ruling will be applied only to sales made on and after September 1, 1959.

Revenue Ruling 116 is hereby modified.