Rev. Rul. 67-282

The Internal Revenue Service has reconsidered applicability of the manufacturers excise tax to concrete mixers designed to be mounted on highway-type automobile truck, truck trailer, or semitrailer chassis.

Information available to the Service indicates that concrete mixers, which were described in Revenue Ruling 56-479, C.B. 1956-2, 796, as primarily designed and adapted for mixing concrete, are in fact primarily designed and adapter for the transportation of concrete or premeasured components thereof.

Section 4061(a)(1) of the Internal Revenue Code of 1954 imposes a tax upon sales by the manufacturer, producer, or importer of various motor vehicle articles, including bodies for automobile trucks, truck trailers, and semitrailers.

Section 48.4061(a)-1(d) of the Manufacturers and Retailers Excise Tax Regulations provides, in part, that a chassis or body specified in section 4061(a) of the Code which is not designed for highway use is not subject to the tax imposed by that section.

Revenue Ruling 57-440, C.B. 1957-2, 721, holds, in part, that the manufacturers excise tax imposed by section 4061(a)(1) of the Code shall not apply to any motor vehicle article which is designed or adapted by the manufacturer for purposes predominantly other than the transportation of persons or property on the highway even though incidental highway use may occur, but such tax does apply to motor vehicle articles of a special type which by their design are intended for general use upon the highways.

A concrete mixer mounted on an automobile truck, truck trailer, or semitrailer chassis is designed for the purpose of transporting concrete or premeasured concrete components (i.e., cement, sand, crushed stone, etc.). It is immaterial that rotational features of such concrete mixers are employed to agitate the concrete or mix the concrete components in-transit or at a jobsite, since they also serve to prevent the gravity segregation of concrete, the `setting up' of premixed concrete, and to unload the mixer's contents. As such, these features aid in the transportation of property over the highway.

After reexamination of the facts, it is concluded such concrete mixers are not designed and adapted by the manufacturer for purposes predominantly other than the transportation of property on the highway within the meaning of Revenue Ruling 57-440 and section 48.4061(a)-1(d) of the regulations. Moreover, it is concluded such concrete mixers are motor vehicle articles of a special type which by their design are intended for general use upon the highways.

Therefore, it is held that a concrete mixer designed to be mounted on a highway-type automobile truck, truck trailer, or semitrailer chassis is an automobile truck, truck trailer, or semitrailer body subject to manufacturers excise tax imposed by section 4061(a)(1) of the Code when sold by the manufacturer, producer, or importer.

Under the authority granted by section 7805(b) of the Code, this ruling will not be applied to concrete mixer bodies, herein described, sold by the manufacturer, producer, or importer thereof before November 1, 1967. Effective date changed to July 1, 1968, by Rev. Rul. 67-418, below.

Revenue Ruling 56-479, C.B. 1956-2, 796, is hereby revoked.