Rev. Rul. 64-78

Advice has been requested whether the `braille multigraph machine' described below is subject to the manufacturers excise tax imposed by section 4191 of the Internal Revenue Code of 1954.

A manufacturer of standard multigraph machines also produces braille multigraph machines by making certain mechanical changes in the standard multigraph machines. This is accomplished by attaching a braille segment or drum and a soft rubber platen. Braille type can be inserted into slots on the face of the drum in the same manner as `printers' type' is inserted in standard multigraph machines. When the drum is rotated, the type comes in contact with the paper with sufficient pressure to impress the characters therein.

These machines are designed to reproduce braille material in almost any quantity at a relatively high rate of speed. This material may consist of braille texts, bulletins, announcements, etc., for use by blind persons.

Section 4191 of the Code imposes a tax upon the sale by the manufacturer, producer, or importer of various articles, including `multigraph machines, typesetting machines, and type justifying machines.' There is no indication in the legislative history of an intent by Congress to limit the term `multigraph machines,' as enumerated in section 4191 of the Code, to any specific type of multigraph machine. The machines described in the instant case have extensive commercial use in the reproduction of braille texts, lessons, instructions, bulletins, announcements, and other materials which, in general, approximate many of the same purposes as materials reproduced by non-braille multigraph machines.

Moreover, the changes made by the manufacturer in the standard multigraph machines in order to convert them for braille printing are not such as to remove the converted machines from the `multigraph machine' category. Each machine uses hand-set type and presses characters through the operation of a rotating drum coming in contact with paper. The taxability of the machines is not affected by the fact that one machine uses `printers' type' and ink while the other uses braille type without ink.

Accordingly, it is held that the braille multigraph machine described above is a multigraph machine within the meaning of section 4191 of the Code. Therefore, those machines are subject to the manufacturers excise tax imposed by that section when sold by the manufacturer.

Although the statute provides no exemption from the manufacturers excise taxes merely because articles may be sold for use by or for blind persons, it should be noted that any of the braille multigraph machines sold by the manufacturer for the exclusive use of certain nonprofit educational organization or a State or local government would come within the exemption provisions of section 4221 of the Code.