Rev. Rul. 60-39

Advice has been requested whether the manufacturers excise tax on (1) motor vehicle articles or (2) on automobile parts are accessories applies to the sales of the articles described below.

Situation (1) A company manufacturers and sells a body which is similar in appearance to a house trailer body but which is designed to be mounted on a pickup automobile truck. It is constructed so that it may be secured to the truck frame by four bolts but it can be easily dismounted. It has windows and a door and is sold equipped with living and sleeping accommodations consisting of a stove, refrigerator, sink, bed, dinette seats, table, cupboard, and sideboard.

Situation (2). A company manufactures and sells a so-called `slide-in cabin' which is designed to be placed in the body of a pickup automobile truck. The cabin has a floor, a door, and windows. It is described as being waterproof and dustproof. It is sued for temporary living and sleeping quarters and, generally, is sold equipped with an ice box, stove, light, cabinet, shelf, and two mattresses. When it is not in use on the truck, it may be placed on the ground, for use as a guest cottage or as a playhouse for children.

Situation (3) . A company manufactures and sells a one-piece top which is designed to be mounted on the body of a pickup automobile struck. The top is constructed so that it may be attached to the truck body sides by four bolts. When it is installed, the top, together with the truck body sides and the truck floor, provides a waterproof and theftproof area which can be used for sleeping quarters. It has windows and a rear door and can be equipped with swing-up bunks, mattresses, and a dome light.

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 (other than house trailers) 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 (other than tires and tubes and other than automobile radio and television receiving sets) for any of the articles enumerated in section 4061(a) of the Code.

Section 4063(a) of the Code provides that the tax imposed under section 4061(a)(2) shall not apply in the case of house trailers.

With respect to the articles described in situations (1) and (2) above, the Internal Revenue Service considers such articles to be bodies for automobile trucks within the meaning of section 4061(a)(1) of the Code. The fact that the articles are designed to be sold with eating and sleeping facilities does not bring them within the scope of the exemption provided by section 4063(a) of the Code. To be considered a house trailer body for purposes of that exemption, a body must be primarily designed to be mounted on a trailer or semitrailer chassis. Furthermore, it generally must also be designed to accommodate sufficient equipment to render it suitable for use as a residence, with facilities for essential living purposes such as sleeping, eating, and the storage and preparation of food.

With respect to the article described in situation (3), the Service considers this article to be specifically designed and adapted for use on motor vehicle articles taxable under section 4061(a)(1) of the Code.

Accordingly, sales of the above-described bodies and slide-in cabins by the manufacturer, producer, or importer thereof are subject to the manufacturers excise tax imposed by section 4061(a)(1) of the Code. On the other hand, sales by the manufacturer, producer, or importer of the tops described in situation (3) are subject to the manufacturers excise tax imposed by section 4061(b) of the Code.

Since the previous position of the Internal Revenue Service as to the applicability of the tax to sales of the bodies, cabins, and tops described above has not been consistent with the conclusions set forth herein, and by the virtue of the authority contained in section 7805(b) of the Code, this Revenue Ruling will be applied only to sales made on and after April 1, 1960.