Par. 15. Section 48.4071-3 is amended by: 1. Revising the section heading and paragraph (a). 2. Revising paragraph (c)(1). 3. Adding paragraph (e). 4. Removing the undesignated authority citation at the end of the section. The revisions and addition read as follows:
(a) General rule. If a tire manufacturer delivers a taxable tire it manufactured to one of its retail outlets, the manufacturer is liable for the tax imposed by section 4071 on this tire in the same manner as if the tire had been sold upon delivery to the retail outlet. The amount of tax is computed under § 48.4071-1.
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(c) * * *
(1) Delivery —(i) Delivery options. A manufacturer of taxable tires may, at its option, treat either of the following events as constituting delivery to a retail outlet:
(A) Delivery of taxable tires to a common carrier (or, where the taxable tires are transported by the manufacturer, the placing of the taxable tires into the manufacturer's highway vehicle) for shipment from the plant in which the taxable tires are manufactured, or from a regional distribution center of taxable tires, to a retail outlet or to a location in the immediate vicinity of a retail outlet primarily for future delivery to the retail outlet.
(B) Arrival of the taxable tires at the retail outlet, or, where shipment is to a location in the immediate vicinity of a retail outlet primarily for future delivery to the retail outlet, the arrival of the taxable tires at such location.
(ii) Delivery election. A manufacturer that has elected to treat one of the events listed in paragraph (c)(1)(i)(A) or (B) of this section as constituting delivery to a retail outlet may not use a different criterion for a later return period unless the manufacturer obtains permission from the IRS in advance.
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(e) Effective/applicability date. This section applies on and after the date of publication of these regulations in the Federal Register as final regulations.