Rev. Rul. 57-94

Advice has been requested whether photograph frames, bookends, ash trays, and similar articles made of `nickel silver' are taxable when sold at retail.

Section 4001 of the Internal Revenue Code of 1954 imposes a tax on articles made of, or ornamented, mounted, or fitted with precious metals or imitations thereof, when sold at retail.

Section 320.33 of Regulations 51, made applicable to the 1954 Code by Treasury Decision 6091, C.B. 1954-2, 47, defines the term `precious metals' to include platinum, gold, silver, and other metals of similar or greater value and defines the term `imitations thereof' to include platings and alloys of such metals. `Nickel silver' sometimes known as `German silver,' is an alloy of nickel with copper and zinc and does not contain gold, silver, platinum, or other metal of similar or greater value. It has a silver-white appearance. However, the fact that a substance is processed to resemble a precious metal in color or appearance does not make such substance an `imitation' of that precious metal for purposes of the retailers excise tax. That determination depends upon whether the substance actually includes a plating or alloy of gold, silver, platinum, or other metal of similar or grater value.

Accordingly, it is held that `nickel silver' is not an imitation of a precious metal. Therefore, the retailers excise tax does not apply to sales of photograph frames, book ends, ash trays, and similar articles made of, or ornamented, mounted, or fitted with `nickel silver.'