Rev. Rul. 59-194

Advice has been requested concerning the applicability of the manufacturers excise tax on automobile parts or accessories to sales of automatic throttle controls.

Various companies manufacture and sell automatic throttle controls which are designed for use as speed control devices. A control may be attached to the carburetor of an automobile for the purpose of automatically maintaining a predetermined speed. The desired speed is preset by means of a push-button or other type of speed selector mounted on the dashboard of the automobile. These devices are intended to provide greater comfort for the vehicle operator during long continuous trips.

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 tubes and other than automobile radio and television receiving sets) for any of the articles enumerated in section 4061(a) of the Code. Section 316.55(a) of Regulation 46, made applicable to the 1954 Code by Treasury Decision 6091, C.B. 1954-2, 47, defines the terms `parts or accessories' for an automobile mobile truck or other automobile chassis or body to include (1) any article the primary use of which is to improve, repair, replace, or serve as a component part of such vehicle or article, (2) any article designed to be attached to or used in connection with such vehicle or article to add to its utility or ornamentation, and (3) any article the primary use of which is in connection with such vehicle or article whether or not essential to its operation or use.

The throttle controls described above are considered to be designed and primarily adaptable for use on or in connection with taxable automobiles. Accordingly, it is held that they are automobile parts or accessories within the meaning of section 4061(b) of the Code and sales of such controls by a manufacturer, producer, or importer are subject to the manufacturers excise tax imposed by that section of the Code.