[Code of Federal Regulations]

[Title 26, Volume 16]

[Revised as of April 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 26CFR48.4061(b)-2]



[Page 90-91]

 

                       TITLE 26--INTERNAL REVENUE

 

    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 

                               (CONTINUED)

 

PART 48_MANUFACTURERS AND RETAILERS EXCISE TAXES--Table of Contents

 

 Subpart H_Motor Vehicles, Tires, Tubes, Tread Rubber, and Taxable Fuel

 

Sec.  48.4061(b)-2  Definition of parts or accessories.



    (a) In general. The term ``parts or accessories'' includes (1) any 

article the primary use of which is to improve, repair, replace, or 

serve as a component part of an automobile truck or bus chasis or body, 

or other automobile chassis or body, or taxable tractor, (2) any article 

designed to be attached to or used in connection with such chassis, 

body, or tractor to add to its utility or ornamentation, and (3) any 

article the primary use of which is in connection with such chassis, 

body, or tractor, whether or not essential to its operation or use. The 

term ``parts or accessories'' includes all articles which have reached 

such a stage of manufacture as to be commonly known as parts or 

accessories whether or not fitting operations are required in connection 

with their installation. An article shall not be deemed to be a taxable 

part or accessory even though it is designed to be attached to the 

vehicle or to be primarily used in connection therewith if the article 

is in effect the load being transported and the primary function of the 

article is to serve a purpose unrelated to the vehicle as such. For 

example, a construction derrick attached to a truck is not a taxable 

part or accessory inasmuch as the derrick is the load of the truck and 

its use is in connection with construction work at a construction site 

rather than in connection with the transportation or loading or 

unloading function of the truck. On the other hand, an article such as a 

towing cradle or loading or unloading equipment designed to be attached 

to or to be primarily used in connection with a truck is a taxable part 

or accessory inasmuch as the articles contributes to the load-carrying 

function of the truck. The term ``parts or accessories'' does not 

include tires, inner tubes, or automobile radio or television receiving 

sets, since these articles are expressly exempted by section 4061(b) 

from the tax. However, the term ``parts or accessories'' includes tire 

valves designed for use on tires or tubes for articles taxable under 

section 4061(a).

    (b) Articles of a general use. The term ``parts or accessories'' 

does not include articles which are not used primarily in the 

manufacture, repair, etc., of automobile trucks, other automobiles, or 

tractors, but have a general use in the manufacture, repair, etc., of 

various articles. For example, commodities such as ball and roller 

bearings, bolts, nuts, washers, screws, nails, tacks, rivets, pins, 

studs, cotters, pipe fittings such as plugs, tees, ells, and elbows, 

drain cocks, grease cups, oilers, and similar articles are not of 

themselves parts or accessories unless so constructed as to be used 

primarily in the manufacture, repair, etc., of automobile trucks, other 

automobiles, or tractors. On the other hand, parts for automobile parts 

or accessories are in themselves taxable unless they are articles of a 

type not specifically designed for use primarily in the automobile 

field. For example, the tax applies to the sale of gears, flexible 

shafts and flexible housings designed as replacement parts for 

automotive speedometers; as well as replacement parts for automobile 

engines, transmissions, differentials, steering mechanisms, timers, 

windshild-wiper motors, and other automobile parts or accessories.



[[Page 91]]



    (c) Materials of a general use--(1) General rule. The term ``parts 

or accessories'' also does not include material such as glass, cloth, 

leather, matting linoleum, and other materials sold in rolls or by the 

foot, such as brake lining, tape, binding, wire, cable, metal and rubber 

tubing, packing, conduit, and similar material. However, except as 

provided in subparagraph (2) of this paragraph, when any such material 

is cut or otherwise transformed by any person into an automobile part or 

accessory, tax attaches at the time such part or accessory is sold by 

such person.

    (2) Articles made for immediate installation or repair. If in 

connection with an immediate installation in an automobile truck, other 

automobile, or tractor an article is produced through the use of special 

machinery or as a result of specialized skills from lengths or rolls of 

material, the person producing such article is considered to have 

manufactured an automobile part or accessory and the tax applies to his 

sale of such part or accessory. For example, tax applies to the sale of 

automobile glass cut to size to replace broken glass, or automobile seat 

covers, automobile floor mats, or fitted truck top covers produced to 

replace worn seat covers, floor mats, or truck top covers. However, if 

an article of a minor nature is produced by simple operation from 

lengths or rolls of material for immediate use by a repairman in the 

repair of an automobile truck, other automobile, or tractor on which he 

is then working, the person producing such article is not considered to 

have manufactured an automobile part or accessory and tax does not apply 

on his sale of such article. For example, tax does not apply where a 

wire, hose, or board is cut to size in order to replace a damaged wire, 

hose, or board of an automobile truck, other automobile, or tractor.

    (d) Examples of articles taxable as parts or accessories. Examples 

of articles which are taxable as parts or accessories are: Automobile 

air conditioners; baby seats for automobiles; automobile beds; 

automobile hammocks; automobile clutches; bottle warmers and heating 

pads designed to operate from an automobile cigarette lighter; 

automobile radio antennae; automobile license plate frames; automobile 

clocks; automobile mirrors and mirror brackets; purses for carrying 

parking meter coins or cases for carrying registration cards when 

designed for attachment to an automobile; safes primarily designed for 

use in taxable motor vehicles; electric bulbs primarily designed and 

adapted for use on automobiles; automobile floor mats; jacks of the 

mechanical or hydraulic bumper, screw, ratchet, scissors, or other type 

primarily designed to be carried as accessories in automobiles as 

distinguished from jacks designed especially for use in garages and 

repair shops; dollies of the type commonly known as converter dollies 

which are used as connectors to convert semitrailers to full trailers; 

tool kits recommended for use with automobiles; automobile seat covers 

of any construction whether they are ready-made or custom fitted; fitted 

truck top covers; glass cut to size for installation in automobiles; and 

automobile bearings, such as automobile crankshaft or connecting rod 

bearings.

    (e) Effective date. This section shall be effective with respect to 

sales made on or after January 1, 1964. For the definition of parts or 

accessories applicable to sales thereof prior to such date, see Sec.  

40.4061(b)-2 of this chapter (Manufacturers and Retailers Excise Tax 

Regulations).

    (f) Cross references. For provisions relating to the tax imposed 

upon:

    (1) Tires and inner tubes, see section 4071 and the regulations 

thereunder contained in Subpart H of this part;

    (2) Automobile radio and television receiving sets, see section 4141 

and the regulations thereunder contained in Subpart J of this part; and

    (3) Fare registers and fare boxes for use on buses and automobiles, 

see section 4191 and the regulations thereunder contained in Subpart L 

of this part.



[T.D. 6648, 28 FR 3633, Apr. 13, 1963, as amended by T.D. 6655, 28 FR 

5235, May 25, 1963]



[[Page 92]]