Rev. Rul. 59-34

Advice has been requested whether the battery meter described below is subject to the manufacturers excise tax on automobile parts or accessories.

A company manufactures and sells a single unit battery meter for installation on automobiles, trucks, tractors, boats, and industrial engines, or wherever a 12-volt battery is used in a charging or starting electrical system. Each meter is equipped with a calibrated dial and an indicating pointer which shows the amount of voltage applied to an electrical system under various operating conditions. If the pointer moves outside the range on the dial designated for a particular operating condition, this indicates the improper functioning of the system and the need for inspection of the battery and the charging system.

Section 4061(a) of the Internal Revenue Code of 1954 imposes a tax upon the sale by the manufacturer, producer, or importer of certain motor vehicle articles, including automobile and truck chassis and bodies. Section 4061(b) of the Code imposes a tax on the sale by the manufacturer, producer, or importer of parts of 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).

Section 316.55 of Regulations 46, made applicable to the 1954 Code by Treasury Decision 6091, C.B. 1954-2, 47, defines the term `parts or accessories' for an automobile truck or other automobile chassis or body, as including any article the primary use of which is in connection with such vehicle or article whether or not essential to its operation or use.

It is held that the single unit battery meter described above is an automobile part or accessory within the meaning of section 4061(b) of the Code and is subject to the manufacturers excise tax imposed by that section upon its sale by the manufacturer.