Amended 1958, 1960, 1976, 1984
- 1984 Pub. L. 98-369 Pub. L. 98–369, § 735(c)(7)(C), struck out subsec. (d) which related to bicycle tires and tubes.
- 1984 Pub. L. 98-369 Pub. L. 98–369, § 735(c)(7)(C), redesignated subsec. (e) as (c).
- 1976 Pub. L. 94-455 Pub. L. 94–455 struck out “or his delegate” after “Secretary”.
- 1960 Pub. L. 86-418 Pub. L. 86–418, § 2(a)(3), added subsec. (d) and redesignated former subsec. (d) as (e).
- 1958 Pub. L. 85-859 Pub. L. 85–859 amended section generally, striking out provisions which related to refrigerator components and to sales free of tax by virtue of section 4220 or 4224 of this title, and substituting provisions making manufacturers, producers and importers of parts or accessories taxable under section 4061(b), radio or television components taxable under section 4141, or camera lenses taxable under section 4171 liable for the tax if they use the parts or accessories otherwise than as material in the manufacture or production of, or as component parts of, any other article to be manufactured or produced by them, for provisions which made section inapplicable with respect to such parts if they were used by them as material in the manufacture or production of, or as a component part of, any article.
Cases: Rex Chainbelt, Inc. v. United States, 484 F.2d 651 (7th Cir. 1973)
(a) General rule If any person manufactures, produces, or imports an article (other than a tire taxable under section 4071) and uses it (otherwise than as material in the manufacture or production of, or as a component part of, another article taxable under this chapter to be manufactured or produced by him), then he shall be liable for tax under this chapter in the same manner as if such article were sold by him. This subsection shall not apply in the case of gasoline used by any person, for nonfuel purposes, as a material in the manufacture or production of another article to be manufactured or produced by him. For the purpose of applying the first sentence of this subsection to coal taxable under section 4121, the words “(otherwise than as material in the manufacture or production of, or as a component part of, another article taxable under this chapter to be manufactured or produced by him)” shall be disregarded.
Amended 1955, 1960, 1961, 1978, 1984
- 1984 Pub. L. 98-369 Pub. L. 98–369, § 735(c)(7)(D), substituted “(other than a tire taxable under section 4071)” for “(other than an article specified in subsection (b), (c), or (d))”.
- 1978 Pub. L. 95-227 Pub. L. 95–227 inserted provisions relating to applying first sentence of this subsection to coal taxable under section 4121 of this title.
- 1961 Pub. L. 87-61 Pub. L. 87–61 inserted sentence making subsection inapplicable in the case of gasoline used by any person, for nonfuel purposes, as a material in the manufacture or production of another article to be manufactured or produced by him.
- 1960 Pub. L. 86-418 Pub. L. 86–418, § 2(a)(1), substituted “subsection (b), (c), or (d)” for “subsection (b) or (c)”.
- 1955 Act Aug. 11, 1955, § 1(a), inserted as tax exempt articles under this chapter, automobile parts or accessories, refrigerator, radio, or television components, or camera lenses taxable under section 4061(b), 4111, or 4171, respectively, of this title.
Cases: Boise National Leasing, Inc. v. United States, 389 F.2d 633 (9th Cir. 1968); Gonzales v. United States, 115 Fed. Cl. 779 (Fed. Cl. 2014)
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(b) Tires If any person manufactures, produces, or imports a tire taxable under section 4071, and sells it on or in connection with the sale of any article, or uses it, then he shall be liable for tax under this chapter in the same manner as if such article were sold by him.
Amended 1955, 1960, 1965, 1984
- 1984 Pub. L. 98-369 Pub. L. 98–369, § 735(c)(7)(A), (B), struck out “and tubes” after “Tires” in heading, and in text substituted “If” for “Except as provided in subsection (d), if”, and struck out “or inner tube” before “taxable under section 4071”.
- 1965 Pub. L. 89-44 Pub. L. 89–44, § 208(c)(1), (2), struck out references to automobile receiving sets from heading, and “or an automobile radio or television receiving set taxable under section 4141,” before “and sells it”.
- 1960 Pub. L. 86-418 Pub. L. 86–418, § 2(a)(2), substituted “Except as provided in subsection (d), if any” for “If any.”
- 1955 Act Aug. 11, 1955, § 1(b), excepted from application of section automobile parts or accessories, refrigerator, radio, or television components, and camera lenses, taxable under sections 4061(b), 4111, 4141, and 4171, respectively, of this title, when for use by the purchaser in the manufacture or production of, or as a component part of, any article.
(c) Computation of tax Except as provided in section 4223(b), in any case in which a person is made liable for tax by the preceding provisions of this section, the tax (if based on the price for which the article is sold) shall be computed on the price at which such or similar articles are sold, in the ordinary course of trade, by manufacturers, producers, or importers, thereof, as determined by the Secretary.
Amended 1965, 1984
- 1984 Pub. L. 98-369 Pub. L. 98–369, § 735(c)(7)(C), redesignated subsec. (e) as (c). Former subsec. (c), which related to automotive parts and accessories, was struck out.
- 1965 Pub. L. 89-44 Pub. L. 89–44, § 208(c)(3), (4), struck out reference to radio components and camera lenses from heading, and “a radio or television component taxable under section 4141, or a camera lens taxable under section 4171,” before “and uses it”.