Rev. Rul. 63-152

Advice has been requested concerning the applicability of the manufacturers excise tax on automobile `parts or accessories' to sales by the manufacturer of the air pumps described below.

A company manufactures and sells hand-operated and foot-operated air pumps. The hand-operated pumps have cylinders of different sizes, ranging from 17 or 20 inches in length and from one and one-fourth to one and three-fourths inches in diameter. The foot-operated pumps have cylinders which are three inches in diameter and have so-called `lids' upon which a person may step to operate the pumps. Each of the hand-operated pumps has an 18-inch hose, whereas each of the foot-operated pumps has a 30-inch hose. Both types of pumps contain `full-floating' pistons.

These pumps are designed and constructed so as to be used for inflating various articles, including footballs, air mattresses, and pneumatic tires for bicycles, motorcycles, and automobiles.

Section 4061(b) of the Internal Revenue Code of 1954 imposes a tax on the sale 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 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.

The air pumps described above are designed for use with and are commonly used in connection with a variety of articles. Although the pumps are used to some extent in connection with taxable motor vehicles, they have no characteristics which would indicate that they are primarily used in connection with such vehicles. Therefore, these pumps are not automobile `parts or accessories' as defined by section 40.4061(b)-2(a) of the regulations.

Accordingly, it is held that the hand-operated and the foot-operated air pumps described above are not subject to the manufacturers excise tax on automobile `parts or accessories,' imposed by section 4061(b) of the Code, when sold by the manufacturer.

The conclusion expressed herein is equally applicable under the provisions of section 48.4061(b)-2 of the regulations, effective January 1, 1964.