Rev. Rul. 65-44

Advice has been requested whether the articles described below are subject to the manufacturers excise tax imposed by section 4191 of the Internal Revenue Code of 1954.

Item 1. A portable manually operated pencil sharpener designed primarily for office, school, or home .-This sharpener removes the wood from the pencil, and it produces only one size of point. It is designed with a base having rubber feet and may be moved freely. It need not be mounted or fastened to a desk, table, etc., in order to be used.

Item 2. A portable electric pencil sharpener designed primarily for office or school use .-This sharpener is designed to be used in sharpening pencils in large quantities quickly and efficiently. This sharpener likewise removes the wood from the pencil and is adjustable so that the size of the point may be varied. It also is designed to be used without mounting or fastening.

Item 3. A portable electric pencil sharpener designed especially for sharpening bowling pencils .-This sharpener also removes the wood from the pencil and is adjustable so that the size of the point may be varied. It is not equipped for permanent attachment to a desk, table, etc.

Section 4191 of the Code imposes a tax upon the sale by the manufacturer, producer, or importer of certain enumerated articles and combinations thereof. `Pencil sharpeners' are included in the enumeration.

A pencil sharpener of the type taxable under section 4191 of the Code is one designed not only to sharpen the lead of a pencil but also to cut or trim the wood or other material of which the pencil is constructed. See Revenue Ruling 57-4, C.B. 1957-1, 378, which relates to the taxability of other pencil sharpeners. The fact that a pencil sharpener is portable does not exclude it from the taxable category.

Accordingly, it is held that the articles described above are pencil sharpeners of the type contemplated by section 4191 of the Code. Therefore, they are subject to the manufacturers excise tax imposed by that section when by the manufacturer, producer, or importer thereof.