Rev. Rul. 63-36

Advice has been requested concerning the applicability of the manufacturers excise tax on certain photographic equipment to the article described below.

The device is similar in shape and size to a small carrying case. It consists of a slide magazine, slide changer lever, projection lamp and lamp housing with a power cord, lens and lens barrel, reflector mirror, and ground glass viewing screen which is built into the cover and is an integral part of the device. In operation, the device is placed on a table and the cover is opened to about a 45-degree angle. Then, a group of slides is placed into the slide magazine. The image of each slide is then projected through the lens onto the reflector mirror and thence to the ground glass viewing screen which is contained in the cover. The cover may be completely opened in order to aim the projected image at a wall or a remote screen.

Section 4171 of the Internal Revenue Code of 1954 imposes a tax upon the sale by the manufacturer, producer, or importer of certain enumerated articles of photographic equipment, including electric motion or still picture projectors of the household type (including in each case parts or accessories of such articles sold on or in connection therewith, or with the sale thereof).

The device of the type here under consideration incorporates both a viewer function and a projection function. Under these circumstances, it is held that such device is an electric still picture projector of the household type within the meaning of section 4171 of the Code. Accordingly, the device described is subject to the manufacturers excise tax imposed by that section when sold by the manufacturer, producer, or importer thereof.