Rev. Rul. 68-91

The purpose of this Revenue Ruling is to list certain lubricating oils that may be sold by the manufacturer (or producer) free of the tax imposed by section 4091 of the Internal Revenue Code of 1954.

It has been determined that the lubricating oils listed herein, although suitable for use as lubricants, are seldom so used, but are used almost exclusively for nonlubricating purposes. Therefore, under section 48.4091-6 of the Manufacturers and Retailers Excise Tax Regulations, the lubricating oils listed below may be sold tax free by the manufacturer thereof, provided he obtains a properly executed exemption certificate from the purchaser as required by the regulations.

1. Non-recovered process aids: Oils, not used as lubricants, having a primary function as aids to processing other substances, that do not become part of the finished products, that are not reused, and that are lost or discarded as a function of the process or application, as follows:

Anti-foam oils

Apron dressing oils

Brick oils

Buffing, polishing, and rubbing oils

Casting oils

Ceramic oils (pottery and glass molds)

Concrete form oils

Core oils

Defoamants

Dust allaying oils

Electrode extrusion oils

Flotation oils

Fogging oils

Form oils

Mold oils for glass

Mold oils for metals

Mold oils for rubber tires

Rayon oils

Rub-roll oils

Silk and wool oils

Slab oils

Textile processing oils and base stocks

Tinning and terming oils

Wave and storm oils

2. Surface coating applications: Oils, not used as lubricants, having a primary function as coatings, or vehicles for such coatings, that are applied to the surface of other substances, and are not reused or recovered but remain on the surface of the substances to which they are applied, as follows:

Agricultural spray oils

Air conditioning filter oils

Air filter coating oils

Cadaver oils

Coal spray oils

Denaturing oils

Feed conditioning oils

Food processing oils

Fruit and vegetable preservative oils

Livestock post oils

Mange oils

Rust and corrosion preventive oils

Slushing oils

3. Components of finished products: Oils, not used as lubricants, having a primary function as compounding or impregnating materials and that become an integral part of finished products that, in their final form, are not lubricants and are not used for lubricating purposes, as follows:

Adhesive oils

Animal feed oils

Anti-dust oils

Battery oils

Calking and sealant oils

Carbon binder oils

Chemical reaction intermediates

Coke binder oils

Composition roofing oils

Cordage oils

Cosmetic oils

Cotton softener oils

Dust cloth oils

Enrichment oils, rubber

Extender oils for rubber and resin

Floor and mop oils

Floor sweeping compound oils

Fur dressing oils

Granule conditioning oils

Harness oils

Ink oils

Lard oils

Leather and belt dressing oils

Insecticide oils

Paint oils

Paper impregnating oils

Paper processing oils

Petroleum sulfonates

Plasticizer oils for rubber and resins

Putty oils

Refined and deodorized neatsfoot oils

Road oils

Rubber impregnating oils

Rubber reclaiming and release oils

Slate granule oils

Soap stock oils

Sperm whale oils

Spray oils

Tallow oils

Tanners fat-liquor oils

Technical white oils

White oils

Wood preserving oils

4. Physical or mechanical aids: Oils, not used as lubricants, having a primary function of performing physical or mechanical functions other than lubrication and that are not included in any of the foregoing groups, as follows:

Absorbent oils

Air filter oils

Compass oils

Fingerprint remover oils

Gas-holder sealing oils

Heat transfer oils

Heat treating oils

Hydraulic and hoist oils

Metal wash oils

Meter oils

Quenching oils

Tempering oils

Washing oils for gas manufacture

Under the provisions of section 48.4091-6(a) of the regulations, an exemption certificate must be obtained by the manufacturer in order to sell any of the lubricating oils in the foregoing lists free of the tax imposed by section 4091 of the Code.

However, in accordance with section 48.4091-6(c) of the regulations, the requirement of an exemption certificate is waived in the case of certain other oils determined by the Commissioner before July 1, 1966, to be seldom used as lubricants, as follows:

 Castor oil_________________________ Rev. Rul. C.B. 58-16, 1958-1, 405.

S.T. 839, S.T. 844, and Revenue Ruling 58-16 are hereby superseded, since the conclusions set forth therein are incorporated in this Revenue Ruling.

¹ Based in part on Technical Information Release 826, dated July 1, 1966.