Rev. Rul. 58-48

The Internal Revenue Service has been asked whether a rug cleaning attachment for an electric floor polisher is subject to the manufacturers excise tax imposed by section 4121(a) of the Internal Revenue Code of 1954.

A company, which manufactures a household type electric floor polisher, also manufactures a rug cleaning attachment which is a specially designed accessory for use with the floor polisher. The floor polisher is a complete functionable article in itself to be used for polishing, scrubbing, and general maintenance of all kinds of surfaces. By removing the brushes from the floor polisher and affixing the rug cleaning attachment, the user is able, with the aid of commercial cleaning products, to clean rugs without removing them from the floor.

Section 4121(a) of the Code imposes a tax upon sales by the manufacturer of household type electric floor polishers and waxers, including parts or accessories therefor sold on or in connection with the sale thereof.

It is held that where a manufacturer sells a complete taxable article, such as a household type electric floor polisher, together with specially designed accessories, the tax imposed by section 4121(a) of the Code applies to the manufacturer's sale of the combination, even though he invoices the accessories separately.

Whether parts or accessories are sold in connection with the sale of a taxable article or separately is a question of fact which must be decided in each instance on the basis of all surrounding circumstances. As stated above, the statute imposes a tax upon the sale by the manufacturer. Therefore, the Service must be guided by the facts surrounding the manufacturer's sale and cannot look to the retailer or ultimate consumer as to the purpose for which certain parts or accessories are purchased.