Rev. Rul. 70-55
Rev. Rul. 70-55; 1970-1 C.B. 225
- Cross-Reference
26 CFR 48.4091-6: Sales after December 31, 1965, of oil seldom used
as a lubricant.
- LanguageEnglish
- Tax Analysts Electronic Citationnot available
The purpose of this Revenue Ruling is to update Revenue Ruling 68-91, C.B. 1968-1, 473. That Revenue Ruling contains a list of lubricating oils that may be sold free of the manufacturers excise tax imposed by section 4091 of the Internal Revenue Code of 1954, by reason of being oils "seldom used as lubricants" within the meaning of section 48.4091-6 of the Manufacturers and Retailers Excise Tax Regulations.
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 non-lubricating purposes. Therefore, under section 48.4091-6 of the 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, are not reused, and 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
Hot forging and piercing operations 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
Glycerin additive plastic processing oils
Granule conditioning oils
Harness oils
Ink oils
Insecticide oils
Lard oils
Leather and belt dressing oils
Oils used as component material in the manufacture of rubber
Paint oils
Paper impregnating oils
Paper processing oils
Petroleum sulfonates
Plasticizer oils for rubber and resins
Putty oils
Refined and deordorized 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
Coolant and abrasive carrying oils used in polishing metal
castings.
Coolant oils used in grinding or honing metal with stone
Fingerprint remover oils
Flushing or cleaning oils
Gas-holder sealing oils
Heat transfer oils
Hydraulic and hoist oils
Metal wash oils
Meter oils
Oils used to prevent paper from adhering to metal rollers
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
Crude neatsfoot oil
Oil generally known as transformer or insulating oil
White oil that is odorless, tasteless, and of 30 Saybolt color
or higher
Non-lubricating engine additive oils
Revenue Rulings 58-476, C.B. 1958-2, 781; 59-215, C.B. 1959-1, 323; 64-120, C.B. 1964-1 (Part 1), 380; 64-244, C.B. 1964-2, 424; and 68-91, C.B. 1968-1, 473, are hereby superseded since the conclusions set forth therein are incorporated in this Revenue Ruling.
- Cross-Reference
26 CFR 48.4091-6: Sales after December 31, 1965, of oil seldom used
as a lubricant.
- LanguageEnglish
- Tax Analysts Electronic Citationnot available
