Rev. Rul. 62-215

Advice has been requested concerning the applicability of the manufacturers excise tax on automobile `parts or accessories' to the several types of articles described below, which are referred to generally as `cushions.'

Type (1): These articles are referred to as `farm tractor seat' cushions. They are designed to fit the contours of the seats of farm tractors, which are nontaxable, and they have tie cords by which they can be tied in position on the seats of tractors. They are made of heavy water-repellant duck material filled with shredded foam rubber.

Type (2): These articles are referred to as `general purpose' cushions. They are made in a variety of sizes and shapes, usually round, square, or rectangular. These cushions are stuffed with various materials and are covered with plastic, vinyl-leather, fibre, or similar material. They are advertised as all purpose or utility cushions for use in the home, in an automobile, at the office, at the stadium, etc.

Type (3): These articles are referred to as `ventilated,' `air-cooled,' or `summer' seat cushions. They are flat, relatively thin, and may be provided with carrying loops or handles. These cushions consist primarily of an inner core of interlocking spiral steel springs covered by fibre-mesh material. This construction permits the circulation of air between the user of the cushion and the surface on which the cushion is placed.

Type (4): These `ventilated,' `air-cooled,' or `summer' seat cushions are identical in construction to the type (3) articles described above except that each cushion consists of two connecting sections, one for the seat and one for the back of the article with which it is used. These cushions are produced in so-called `double' and `single' sizes.

The double cushions are designed for full coverage of the seats of automobiles, trucks, etc. When intended for use in the front seats of two-door automobiles, the back sections are `split' to permit either portion to tilt forward without interfering with the other. The single cushions are used extensively in automotive vehicles, either by the drivers or by the passengers.

Because of the widespread public acceptance of these articles for use in automotive vehicles within recent years, they are sold primarily through automobile accessory outlets. They are packaged, advertised, and marketed in such a manner as to indicate that their primary use is with automotive vehicles, although they also are suitable for other uses.

Type (5): These articles are referred to as `wedge-type' cushions because their thickness is tapered in the shape of an elongated triangle. These cushions, which are not `ventilated,' are stuffed with various types of material and are often covered with automobile seat cover material. They are recommended for use to ease back strain on long trips. In addition to their use as back rests, they also may be used as seat cushions. Because of their tapered thickness, they change the angle of incline of the seat. Most sales of these `wedge-type' cushions are through automobile seat-cover and other automobile accessory outlets. Furthermore, they are packaged, advertised, and marketed in such a manner as to indicate that their primary use is with automotive vehicles, although they also are suitable for other uses.

Type (6): These articles are referred to as `head rest' cushions. They are rectangular cushions which have a concave surface on one or more sides to fit a person's head. These cushions are filled with various types of material, are covered with fabric, and are fitted with brackets by which they may be fastened to the backs of automobile seats. These cushions are packaged, advertised, and marketed in such a manner as to indicate that their primary use is with automotive vehicles, although they also are suitable for other uses.

Section 4061(b) of the Internal Revenue Code of 1954 imposes a tax on sales by the manufacturer, producer, or importer of parts or accessories (other than tires and inner tubes and other than automobile radio and television receiving sets) for any of the motor vehicle articles enumerated in section 4061(a) of the Code.

Section 40.4061(b)-2(a) of the Manufacturers and Retailers Excise Tax Regulations provides that, in general, the term `parts or accessories' includes (1) any article, the primary use of which is to improve, repair, replace, or serve as a component part of an automobile truck or bus chassis or body, or other automobile chassis or body, or taxable tractor, (2) any article designed to be attached to or used in connection with such chassis, body, or tractor to add to its utility or ornamentation, and (3) any article, the primary use of which is in connection with such chassis, body, or tractor, whether or not essential to its operation or use.

It should be noted that, under the provisions of the regulations, the tax applies to any article which is designed to be used in connection with a taxable vehicle to add to its utility or ornamentation. Furthermore, the tax also applies to any article the primary use of which is in connection with a taxable vehicle, irrespective of the purpose for which it may have been originally designed. Therefore, the tax applies to any article which is primarily used in connection with a taxable vehicle for the convenience or comfort of either the driver or the passengers. The primary use of an article in connection with taxable vehicles may be indicated by the nature of the manufacturer's advertising, the channels of distribution, and the general customer acceptance of the article.

The stated facts regarding the articles identified above as type (1), type (2), and type (3) do not indicate that they are either designed to be used in connection with taxable vehicles or primarily used in connection with such vehicles within the meaning of the regulations. Accordingly, it is held that they are not subject to the manufacturers excise tax on automobile `parts or accessories.'

On the other hand, the stated facts indicate that the articles identified above as type (4), type (5), and type (6) are primarily used in connection with taxable vehicles. Therefore, it is further held that those articles are subject to the manufacturers excise tax on automobile `parts or accessories' under the provisions of section 4061(b) of the Code and section 40.4061(b)-2(a) of the regulations.

Under the authority granted by section 7805(b) of the Code, the conclusion of the above paragraph will not be applied to articles sold by manufacturers, producers or importers, prior to August 1, 1963.

¹ As originally published in Internal Revenue Bulletin 1962-53, 29, dated December 31, 1962, the effective date of this Revenue Ruling was expressed as February 1, 1963; however, that date was extended to August 1, 1963, by Technical Information Release 449 dated January 29, 1963, which was published as a Special Announcement in Bulletin 1963-8, 9, dated February 25, 1963.