Rev. Rul. 58-202

Advice has been requested whether skis and ski poles designed for use by children are subject to the manufacturers excise tax on sporting goods.

A manufacturer sells sets consisting of skis and ski poles specifically designed for use by children. The skis range from three feet to five feet and six inches in length. Some of the skis are equipped with professional type ski bindings, which consist of adjustable metal clamps and metal springs or clasps, and otherwise are so constructed that they are suitable for use in the sport of skiing. The other so-called `skis' are, by the very nature of their construction, unfit for any use except in children's play, such as in backyards and on sidewalks. The poles which are sold with the latter `skis' also are of such a quality and design that they are inadequate for any use except in children's play.

Section 4161 of the Internal Revenue Code of 1954 imposes a tax upon the sale by manufacturers, producers, or importers of certain enumerated articles of sporting goods. The enumeration of such articles includes skis and ski poles. It is the position of the Internal Revenue Service that the tax is imposed on sporting goods enumerated in section 4161 if they are constructed so as to be fit for practical use in the sport to which they relate, irrespective of whether they are designed to be used by children or by adults.

Accordingly, it is held that skis and ski poles designed for use by children are taxable sporting goods articles if such skis and ski poles are constructed so as to suitable for practical use in the sport of skiing. Therefore, the manufacturers excise tax imposed by section 4161 of the Code applies to the manufacturer's sale of those skis and ski poles described in the instant case which are so constructed that they are suitable for use in the sport of skiing, but the tax does not apply to the sale of those so-called `skis' and `ski' poles which are suitable only for use in children's play, such as in backyards and on sidewalks.