81 FR 18544 - Excise Tax; Tractors, Trailers, Trucks, and Tires; Definition of Highway Vehicle
DEPARTMENT OF THE TREASURY
Internal Revenue Service Federal Register Volume 81, Issue 62 (March 31, 2016)
Internal Revenue Service
Federal Register Volume 81, Issue 62 (March 31, 2016)
| Page Range | 18544-18558 | |
| FR Document | 2016-06881 |
[Federal Register Volume 81, Number 62 (Thursday, March 31, 2016)] [Proposed Rules] [Pages 18544-18558] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-06881] ======================================================================== Proposed Rules Federal Register ________________________________________________________________________ This section of the FEDERAL REGISTER contains notices to the public of the proposed issuance of rules and regulations. The purpose of these notices is to give interested persons an opportunity to participate in the rule making prior to the adoption of the final rules. ======================================================================== Federal Register / Vol. 81, No. 62 / Thursday, March 31, 2016 / Proposed Rules [[Page 18544]] ----------------------------------------------------------------------- DEPARTMENT OF THE TREASURY Internal Revenue Service 26 CFR Parts 41, 48, and 145 [REG-103380-05] RIN 1545-BE31 Excise Tax; Tractors, Trailers, Trucks, and Tires; Definition of Highway Vehicle AGENCY: Internal Revenue Service (IRS), Treasury. ACTION: Notice of proposed rulemaking. ----------------------------------------------------------------------- SUMMARY: This document contains proposed regulations relating to the excise taxes imposed on the sale of highway tractors, trailers, trucks, and tires; the use of heavy vehicles on the highway; and the definition of highway vehicle related to these and other taxes. These proposed regulations reflect legislative changes and court decisions regarding these topics. These proposed regulations affect manufacturers, producers, importers, dealers, retailers, and users of certain highway tractors, trailers, trucks, and tires. DATES: Written and electronic comments and requests for a public hearing must be received by June 29, 2016. ADDRESSES: Send submissions to: CC:PA:LPD:PR (REG-103380-05), Room 5203, Internal Revenue Service, P.O. Box 7604, Ben Franklin Station, Washington, DC 20044. Submissions may be hand-delivered to: CC:PA:LPD:PR Monday through Friday between the hours of 8 a.m. and 4 p.m. to: CC:PA:LPD:PR (REG-103380-05), Courier's Desk, Internal Revenue Service, 1111 Constitution Avenue NW., Washington, DC, or sent electronically via the Federal eRulemaking Portal at http://www.regulations.gov (IRS REG-1103380-05). FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations, Celia Gabrysh, at (202) 317-6855; concerning submissions of comments or a request for a hearing Regina Johnson at (202) 317-6901 (not toll-free numbers). SUPPLEMENTARY INFORMATION: Paperwork Reduction Act The collection of information contained in this notice of proposed rulemaking has been submitted to the Office of Management and Budget for review in accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 3507(d)). Comments on the collection of information should be sent to the Office of Management and Budget, Attn: Desk Officer for the Department of the Treasury, Office of Information and Regulatory Affairs, Washington, DC 20503, with copies to the Internal Revenue Service, Attn: IRS Reports Clearance Officer, SE:W:CAR:MP:T:T:SP, Washington, DC 20224. Comments on the collection of information should be received by May 31, 2016. Comments are specifically requested concerning: Whether the proposed collection of information is necessary for the proper performance of the functions of the Internal Revenue Service, including whether the information will have practical utility; The accuracy of the estimated burden associated with the proposed collection of information; How the quality, utility, and clarity of the information to be collected may be enhanced; How the burden of complying with the proposed collection of information may be minimized, including through the application of automated collection techniques or other forms of information technology; and Estimates of capital or start-up costs and costs of operation, maintenance, and purchase of services to provide information. The collections of information in these proposed regulations are in Sec. 48.4051-1(e)(8), describing the certificate the seller of an incomplete chassis cab must have to substantiate a tax-free sale; Sec. 48.4051-1(f)(3)(ii), describing the record of gross vehicle weight (GVW) a seller of a truck, trailer, or tractor must maintain to substantiate taxable and nontaxable sales; Sec. 48.4051-1(f)(4)(ii), describing the record of gross combination weight (GCW) a seller of a tractor must maintain to substantiate taxable and nontaxable sales; Sec. 48.4052-1(c), describing the certificate a seller of a truck, trailer, or tractor for resale or long term leasing must have to substantiate a tax-free sale; Sec. 48.4052-2(b), describing the certificate a seller of a trailer must have to avoid the four percent price markup for resale within six months; Sec. 48.4073-1(c), describing the certificate a taxable tire manufacturer must have to make a tax-free sale to the Department of Defense or the Coast Guard; Sec. 48.4221-7(c), describing the certificate a manufacturer must have to make a tax-free sale of a taxable tire when sold for use or in connection with the sale of another article manufactured by the purchaser and sold by the purchaser in a sale that meets the requirements of section 4221(e)(2); and Sec. 48.4221-8(c), describing the certificate a taxable tire manufacturer must have to make a tax- free sale of taxable tires for intercity, local and school buses. This information is required to obtain a tax benefit and meet a taxpayer's recordkeeping obligations under section 6001. This information will be used by the IRS to substantiate claims for tax benefits. The likely recordkeepers are businesses. Estimated total annual reporting and/or recordkeeping burden: 750 hours. Estimated average annual burden hours per respondent and/or recordkeeper varies from .10 hour to .40 hours, depending on individual circumstances, with an estimated average of .25 hours. Estimated number respondents and/or recordkeepers: 3,000. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a valid control number assigned by the Office of Management and Budget. Books or records relating to a collection of information must be retained as long as their contents may become material in the administration of any internal revenue law. Generally, tax returns and tax return information are confidential, as required by 26 U.S.C. 6103. Background This document contains proposed amendments to the Highway Use Tax Regulations (26 CFR part 41), the Manufacturers and Retailers Excise Tax Regulations (26 CFR part 48), and the Temporary Excise Tax Regulations Under The Highway Revenue Act of 1982 (Pub. L. 97-424) (26 CFR part 145). [[Page 18545]] Tractors, Trailers, and Trucks Before April 1, 1983, section 4061 imposed a tax on the manufacturer's sale of certain highway-type tractors, chassis, and bodies for highway-type trailers and trucks, and related parts and accessories for these articles. The Highway Revenue Act of 1982, Public Law 97-424 (96 Stat. 2097) (the 1982 Act), changed this tax to a 12 percent tax under section 4051(a)(1) on the first retail sale of certain highway-type tractors and chassis and bodies for highway-type trailers and trucks. In addition, the 1982 Act replaced the tax on the manufacturer's sale of related parts and accessories with a tax on the installation of parts and accessories on a vehicle containing a taxable article within six months after the vehicle was first placed in service (unless the aggregate price of the parts and the cost of installation was less than $200). Section 4051(a)(5) provides that the sale of a truck, truck trailer, or semitrailer is to be considered as the sale of a chassis and of a body. Under the 1982 Act, a chassis or body suitable for use with (1) a truck with a GVW of 33,000 pounds or less or (2) a trailer with a GVW of 26,000 pounds or less is generally exempt from tax. All tractors of the kind chiefly used for highway transportation in connection with trailers and semitrailers were taxable under the 1982 Act regardless of their GVW. On April 4, 1983, temporary regulations were published in the Federal Register (48 FR 14361; TD 7882) to implement this new retail tax. Subsequent amendments to these regulations were published in the Federal Register on September 13, 1985 (50 FR 37350; TD 8050); May 12, 1988 (53 FR 16867; TD 8200); and July 1, 1998 (63 FR 35799; TD 8774). Collectively, these regulations are referred to in this preamble as ``the temporary regulations.'' One provision in the temporary regulations provided that tax was not imposed on tractors, chassis, and bodies when they were sold for resale or long-term lease if the buyer was registered by the IRS. Section 1434(b)(2) of the Taxpayer Relief Act of 1997, Public Law 105- 34 (111 Stat. 788) (the 1997 Act), provided that IRS registration could not be a prerequisite for these tax-free sales. Subsequently, the temporary regulations were amended to reflect this statutory provision on March 31, 2000 (65 FR 17149; TD 8879). The 1997 Act also increased from $200 to $1,000 the aggregate dollar value of parts and accessories that may be installed on section 4051 articles without incurring a tax liability. Section 11112 of the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA), Public Law 109-59 (119 Stat. 1144), added new section 4051(a)(4), that provides an exemption for small tractors from the tax on tractors. Tires Before January 1, 1984, section 4071 imposed a tax on the manufacturer's sale of highway and nonhighway tires, tubes, and tread rubber. Effective that date, the 1982 Act repealed most of these taxes but retained a tax on certain heavy highway-type tires based on the weight of the tires. Section 869 of the American Jobs Creation Act of 2004, Public Law 108-357 (118 Stat. 1418) (2004 Act), changed section 4071 from a tax based on the weight of a tire to a tax based on the maximum rated load capacity of a tire in excess of 3,500 pounds. A special rate of tax was provided for super single tires. A super single tire was defined as a single tire greater than 13 inches in cross-section width designed to replace two tires in a dual fitment. Section 1364(a) of the Energy Policy Act of 2005, Public Law 109-58 (119 Stat. 594), amended the definition of a super single tire to exclude any tire designed for steering. Definition of Highway Vehicle Generally, section 4051 imposes a tax only on components of highway vehicles. Similarly, the tax imposed by section 4481 on the use of certain heavy vehicles applies only to highway vehicles. Sections 6421 and 6427 allow a credit or payment related to the tax imposed on fuel (including gasoline or diesel fuel) in many cases if the fuel is used other than as a fuel in a highway vehicle. Existing regulations define highway vehicle with exceptions provided for (1) certain specially-designed mobile machinery for nontransportation functions, (2) certain vehicles specially designed for off-highway transportation, and (3) certain trailers and semitrailers specially designed to perform nontransportation functions off the public highway. Section 851 of the 2004 Act generally codified the regulatory exception for item (1) and codified, with substantial changes, the regulatory definitions of items (2) and (3). Reason for These Regulations Many of the existing regulations relating to tractors, trailers, trucks, and tires do not reflect current law. These proposed regulations reflect changes to the Internal Revenue Code since 1982, address several court decisions, remove numerous obsolete regulations, and also afford the public the opportunity to comment on those provisions of the temporary regulations that are restated and unchanged. Explanation of Provisions Definition of Highway Vehicle Proposed Sec. 48.0-5 defines a highway vehicle as any self- propelled vehicle, or any truck trailer or semitrailer, designed to perform a function of transporting a load over public highways. This proposed section also provides exceptions for specified mobile machinery, off-highway vehicles, and non-transportation trailers and semitrailers for purposes of the tax on the sale of heavy vehicles (section 4051), the highway use tax (section 4481), and the credits and payments allowed for certain nontaxable uses (sections 6421 and 6427). The exception for mobile machinery restates section 4053(8) (as added by the 2004 Act) and the exceptions for off-highway vehicles and non- transportation trailers and semitrailers restate section 7701(a)(48)(A) and (B) (as added by the 2004 Act). Also, Notice 2005-4, 2005-1 C.B. 289, announced that existing regulations regarding certain vehicles specially designed for off-highway transportation would be revised so that they will not apply to calendar quarters beginning after October 22, 2004. These proposed regulations make that change. The proposed regulations provide two examples that illustrate the definition of highway vehicle. The first example concerns the off- highway vehicle exception and characterizes an asphalt semitrailer similar to the trailers and semitrailers described in Flow Boy, Inc. v. United States, 83-1 U.S.T.C. ]16,395, aff'd, 54 A.F.T.R.2d 84-6545, 84- 1 U.S.T.C. ]16,418 (10th Cir. 1984), and Gateway Equip. Corp. v. United States, 247 F. Supp. 2d 299 (W.D.N.Y. 2003), as a highway vehicle. Relying on the then-existing regulations, the Flow Boy and Gateway courts held that the asphalt trailers and semitrailers in question were not highway vehicles. In 2004, Congress added section 7701(a)(48) to the Code, which provides a statutory definition of the term ``off- highway vehicles.'' Under section 7701(a)(48)(A), a vehicle is not treated as a highway vehicle if such vehicle is specially designed for the primary function of transporting a particular type of load over the public highway and because of this special design, such vehicle's capability to transport a load over the [[Page 18546]] public highway is substantially limited or impaired. The enactment of section 7701(a)(48) effectively disqualified an asphalt semitrailer similar to the ones described in Flow Boy and Gateway from the off- highway exception because its special design does not substantially limit or impair its capability to transport a load over a public highway. The example in the proposed regulations illustrates the analysis of whether a vehicle is a highway vehicle under section 7701(a)(48). The second example concerns the mobile machinery exception and reflects the decision in Florida Power & Light Co. v. United States, 375 F.3d 1119 (Fed. Cir. 2004), which holds that a vehicle that can perform more than one transportation function is not specially designed to serve ``only'' as a mobile carriage and mount. See also Schlumberger Technology Corp. and Subsidiaries v. United States, 55 Fed. Cl. 203 (2003). Retail Tax on Tractors, Trailers, and Trucks The proposed regulations reorganize and partially restate the temporary regulations that address the retail tax on tractors, trailers, and trucks. Proposed Sec. 48.4051-1(e) revises the definitions of tractor and truck and provides a model certificate for a seller to establish the tax status of an incomplete chassis cab. If the buyer of an incomplete chassis cab certifies to the seller that the buyer will not complete the incomplete chassis cab as a taxable tractor, the seller may treat the sale of the incomplete chassis cab as the sale of a truck or small tractor. Consequently, no tax is imposed on the sale of an incomplete chassis cab when accompanied by a qualifying certificate. In the absence of this certificate, the seller must treat the sale of an incomplete chassis cab as the sale of a taxable tractor. This rule generally restates Sec. 145.4051-1(e)(1) and is consistent with the interpretation of the existing rule in Freightliner of Grand Rapids, Inc. v. United States, 351 F. Supp. 2d 718, 723 (2004). Consistent with the temporary regulations, the proposed regulations define the terms tractor and truck by reference to the primary design of a vehicle. For purposes of determining whether a vehicle is ``primarily designed'' as a tractor or a truck, proposed Sec. 48.4051- 1(g) also includes an example and reflects Rev. Rul. 2004-80 (2004-2 CB 164), which applied the primarily designed test to determine whether a vehicle was a tractor or a truck. The definition of truck trailer in proposed Sec. 48.4051- 1(e)(4)(ii) would include any manufactured home on a frame that has axles and wheels. This definition classifies a manufactured home of the type at issue in Horton Homes, Inc. v. United States, 357 F.3d 1209 (11th Cir. 2004), as a truck trailer because all of its load and weight is carried on its own chassis and it is designed to be towed. A consequence of this characterization is that the vehicle that tows this manufactured home is a tractor as defined in section 4051(a)(1)(E). Thus, under the proposed regulations, toters, as the vehicles that tow these manufactured homes are known in the industry, would be taxable as tractors. While this result is different from the decision in Horton Homes, which held that toters are not taxable tractors, that decision expressly noted that ``Congress did not define `trailers or semitrailers,' [in the statute] nor has the Treasury promulgated regulations defining those terms'' and thus applied a dictionary definition of the term ``trailer'' to determine whether toters are taxable. Id. at 1212 n.6. These proposed regulations fill in the regulatory gap faced by the Eleventh Circuit by providing a definition of ``trailer'' that will clarify the determination of whether a vehicle is a taxable tractor. Proposed Sec. 48.4051-1(f) provides exclusions from the tax imposed by section 4051 for certain trucks and trailers that are below a certain GVW and tractors that are below a certain GVW and a certain GCW. Proposed Sec. 48.4051-1(f) defines GVW and GCW and also provides the related recordkeeping requirements to support these exclusions. Proposed Sec. 48.4051-2 modifies the temporary regulations to reflect the statutory increase in the aggregate dollar value of parts and accessories that may be installed on a taxable article without incurring a tax liability. Proposed Sec. 48.4052-1 supplements the existing definition of taxable sale to include the resale of an unused article that had been previously sold tax-free. Chassis Characterization The proposed regulations provide that if a chassis is a component part of a highway vehicle, the taxability of the chassis is determined independent of, and without regard to, the body that is installed on the chassis. Likewise, if a body is a component part of a highway vehicle, the taxability of the body is determined independent of, and without regard to, the chassis on which the body is installed. This proposed rule is contrary to the result in Rev. Rul. 69-205 (1969-1 CB 277), which holds that an otherwise taxable chassis is not taxable if a motorhome body is installed on the chassis. This revenue ruling predates and is inconsistent with the language in section 4051(a)(1), which lists a chassis and a body as separate taxable articles. This revenue ruling will be obsoleted after publication of the final regulations. Taxable Tires Effective January 1, 2005, section 4071 imposes a tax on taxable tires for each ten pounds of the maximum rated load capacity that exceeds 3,500 pounds. The proposed regulations reflect this change and remove references in existing regulations to tread rubber, inner tubes, and the determination of a tire's weight. The proposed regulations also define rated load capacity and super single tire, and address multiple load ratings and the consequences of tampering with a tire's maximum load rating. The proposed regulations also provide rules under section 4073 for making tax-free sales of tires for the exclusive use of the Department of Defense and the Coast Guard. In addition, the proposed regulations provide model certificates to support these sales, as well as sales of tires by manufacturers for use on or in connection with the sale of another article manufactured by the purchaser and sold by the purchaser in a sale that meets the requirements of section 4221(e)(2) and sales of taxable tires to be used on intercity, local, and school buses (section 4221(e)(3)). Proposed Applicability Date The regulations generally are proposed to apply on and after the date of publication of a Treasury decision adopting these rules as final regulations in the Federal Register. Availability of IRS Documents The IRS revenue rulings and the notice cited in this preamble are published in the Internal Revenue Cumulative Bulletin and are available at www.irs.gov. Special Analyses Certain IRS regulations, including this one, are exempt from the requirements of Executive Order 12866, as supplemented and reaffirmed by Executive Order 13563. Therefore, a regulatory flexibility assessment is not required. It also has been determined that section 553(b) of the Administrative Procedure Act (5 U.S.C. chapter 5) does not apply to these regulations. It is hereby certified that the collection of information in these regulations will not have a significant economic impact on a substantial number of small entities. This certification is based on the fact [[Page 18547]] that the time required to secure and maintain the required information is minimal (estimated at an average of 15 minutes) and taxpayers would ordinarily already collect and retain much of this information for other business purposes such as accounting, insurance, and marketing. Also, truck manufacturers presently provide the GVW and gross combined weight to truck dealers for purposes unrelated to federal excise tax. Therefore, a Regulatory Flexibility Analysis under the Regulatory Flexibility Act (5 U.S.C. chapter 6) is not required. Pursuant to section 7805(f) of the Internal Revenue Code, this notice of proposed rulemaking has been submitted to the Chief Counsel for Advocacy of the Small Business Administration for comment on its impact on small business. Comments and Requests for a Public Hearing Before these proposed regulations are adopted as final regulations, consideration will be given to any comments that are submitted timely to the IRS as prescribed in this preamble under the ADDRESSES heading. The Treasury Department and the IRS request comments on all aspects of the proposed regulations. All comments will be available at www.regulations.gov or upon request. A public hearing may be scheduled if requested in writing by any person that timely submits written comments. If a public hearing is scheduled, notice of the date, time, and place for the hearing will be published in the Federal Register. Drafting Information The principal author of these regulations is Celia Gabrysh, Office of Associate Chief Counsel (Passthroughs and Special Industries). However, other personnel from the IRS and the Treasury Department participated in their development. List of Subjects 26 CFR Part 41 Excise taxes, Motor vehicles, Reporting and recordkeeping requirements. 26 CFR Parts 48 and 145 Excise taxes, Reporting and recordkeeping requirements. Proposed Amendments to the Regulations Accordingly, 26 CFR parts 41, 48, and 145 are proposed to be amended as follows: PART 41--EXCISE TAX ON USE OF CERTAIN HIGHWAY MOTOR VEHICLES 0 Paragraph 1. The authority citation for part 41 continues to read in part as follows: Authority: 26 U.S.C. 7805 * * * Sec. 41.4482(a)-1 [Amended] 0 Par. 2. Section 41.4482(a)-1(a)(2) is amended by removing the language ``Sec. 48.4061(a)-1(d)'' and adding ``Sec. 48.0-5'' in its place. PART 48--MANUFACTURERS AND RETAILERS EXCISE TAXES 0 Par. 3. The authority citation for part 48 is amended by adding entries in numerical order to read in part as follows: Authority: 26 U.S.C. 7805 * * * Section 48.4051-1 also issued under 26 U.S.C. 4051(a). Section 48.4051-2 also issued under 26 U.S.C. 4051(b). * * * * * Section 48.4052-2 also issued under 26 U.S.C. 4052(b). * * * * * Section 48.4071-3 also issued under 26 U.S.C. 4071(b). * * * * * Sec. 48.0-1 [Amended] 0 Par. 4. Section 48.0-1, fourth sentence, is amended by removing the language ``highway-type tires'' and adding ``taxable tires'' in its place. Sec. 48.0-2 [Amended] 0 Par. 5. In Sec. 48.0-2, paragraph (b)(5), first sentence, is amended by removing the language ``In the case of a lease,'' and adding ``Except as provided in Sec. 48.4052-1(e), in the case of a lease,'' in its place. 0 Par. 6. Section 48.0-4 is added to subpart A to read as follows: Sec. 48.0-4 Highway vehicle and mobile machinery. (a) Overview. (1) The definitions of highway vehicle and mobile machinery in this section apply for purposes of this part and part 41 of this chapter. See Sec. 41.4482(a)-1(a)(2) of this chapter. (2) The taxes imposed by sections 4051 and 4481 do not apply to mobile machinery (as defined in paragraph (b)(3)(iii) of this section), and the tax imposed by section 4071 does not apply to tires of a type used exclusively on such mobile machinery. In addition, for purposes of determining whether use of a vehicle qualifies as off-highway business use under section 6421(e)(2)(C) (relating to uses in mobile machinery), mobile machinery (as defined in this section) satisfies the design- based test of section 6421(e)(2)(C)(iii). To qualify as off-highway business use, however, the use of the vehicle must also satisfy the use-based test of section 6421(e)(2)(C)(iv). (b) Highway vehicle--(1) In general. Except as otherwise provided in paragraph (b)(3) of this section, highway vehicle means any self- propelled vehicle, or any truck trailer or semitrailer, designed to perform a function of transporting a load over public highways. (2) Explanation. (i) A vehicle consists of a chassis, or a chassis and a body if the vehicle has a body, but does not include the vehicle's load. (ii) Except as otherwise provided in paragraph (b)(3) of this section, in determining whether a vehicle is a highway vehicle, it is immaterial whether-- (A) The vehicle can perform functions other than transporting a load over the public highways; (B) The vehicle is designed to perform a highway transportation function for only a particular kind of load, such as passengers, furnishings and personal effects (as in a house, office, or utility trailer), a special type of cargo, goods, supplies, or materials, or machinery or equipment specially designed to perform some off-highway task unrelated to highway transportation; and (C) In the case of a vehicle specially designed to transport machinery or equipment, such machinery or equipment is permanently mounted on the vehicle. (iii) Examples of vehicles that are designed to perform a function of transporting a load over the public highways are passenger automobiles, motorcycles, buses, motor homes, and highway-type trucks, truck tractors, trailers, and semitrailers. (iv) Examples of vehicles that are not designed to perform a function of transporting a load over the public highways are farm tractors, bulldozers, road graders, and forklifts. (v) The term public highway includes any road (whether a federal highway, state highway, city street, or otherwise) in the United States that is not a private roadway. (vi) The term transport includes tow. (3) Exceptions--(i) Certain vehicles specially designed for off- highway transportation--(A) In general. The term highway vehicle does not include a vehicle if the vehicle is specially designed for the primary function of transporting a particular type of load other than over a public highway and [[Page 18548]] because of this special design such vehicle's capability to transport a load over a public highway is substantially limited or impaired. (B) Determination of vehicle's design. For purposes of paragraph (c)(3)(i)(A) of this section, a vehicle's design is determined solely on the basis of its physical characteristics. (C) Determination of substantial limitation or impairment. For purposes of paragraph (c)(3)(i)(A) of this section, in determining whether substantial limitation or impairment exists, account may be taken of factors such as the size of the vehicle, whether the vehicle is subject to the licensing, safety, and other requirements applicable to highway vehicles, and whether the vehicle can transport a load at a sustained speed of at least 25 miles per hour. It is immaterial that a vehicle can transport a greater load off the public highway than the vehicle is permitted to transport over the public highway. (ii) Nontransportation truck trailers and semitrailers. The term highway vehicle does not include a truck trailer or semitrailer if it is specially designed to function only as an enclosed stationary shelter for the carrying on of an off-highway function at an off- highway site. (iii) Mobile machinery. The term highway vehicle does not include any vehicle that consists of a chassis-- (A) To which there has been permanently mounted (by welding, bolting, riveting, or other means) machinery or equipment to perform a construction, manufacturing, processing, farming, mining, drilling, timbering, or similar operation if the operation of the machinery or equipment is unrelated to transportation on or off the public highways; (B) That has been specially designed to serve only as a mobile carriage and mount (and a power source, where applicable) for the particular machinery or equipment involved, whether or not such machinery or equipment is in operation; and (C) That, by reason of such special design, could not, without substantial structural modification, be used as a component of a vehicle designed to perform a function of transporting any load other than that particular machinery or equipment or similar machinery or equipment requiring such a specially designed chassis. (c) Examples. The following examples illustrate the rules of this section: Example 1; Off-highway transportation. (1) Facts. (i) A tri- axle semitrailer that is used in highway construction, maintenance, and repair work also hauls highway construction and repair materials to job sites. The semitrailer's floor is equipped with a continuous rubber belt attached to a steel slatted roller chain that carries payload to the rear tailgate at a controllable discharge rate. The semitrailer has insulated double sidewalls and a baffled hopper. This equipment enables the semitrailer to transport and unload hot- mix asphalt, asphalt-related materials, and low-slump concrete for highway construction and repair. When used as an asphalt transporter, the semitrailer unloads the asphalt at the job site through the rear tailgate into a trailing asphalt paving machine. The semitrailer is designed to perform a function of transporting a load over public highways. (ii) A highway tractor tows the semitrailer at normal highway speeds. The semitrailer complies with all federal and state regulations governing highway use, may be legally operated on the public highways when loaded within legal weight limits (80,000 pounds), and does not exceed state maximum highway length, width, or height limitations. Loaded to its capacity with asphalt, the combined weight of the semitrailer, the asphalt, and the tractor exceeds 100,000 pounds. Special state permits may be purchased to operate the tractor/semitrailer combination above the legal weight limit on public highways. (2) Analysis. For purposes of the exception provided by paragraph (b)(3)(i) of this section for vehicles specially designed for off-highway transportation, paragraph (b)(3)(i)(B) of this section provides that a vehicle's design is determined solely on the basis of its physical characteristics. The physical characteristics of this semitrailer include insulated double sidewalls, a baffled hopper, and an unloading mechanism on the floor of the trailer that moves hot road building materials to the back of the trailer and delivers these materials into a paving machine at controlled rates. Examples of the type of machinery or equipment that contribute to the highway transportation function are unloading equipment and machinery that contribute to the preservation of the cargo. The semitrailer's conveyor discharge system and insulated walls are designed to contribute to the highway transportation functions of unloading (discharge conveyor system) and preserving (insulated sidewalls) the load. This equipment is not designed for the job-site function of applying asphalt or low-slump concrete. (3) Conclusion. The semitrailer is not a vehicle described in paragraph (b)(3)(i)(A) of this section. The semitrailer's physical characteristics, such as sidewalls, a hopper, and the unloading mechanism, demonstrate that this semitrailer is capable of transporting asphalt or low-slump concrete over a public highway without substantial limitation or impairment. Example 2; Mobile machinery. (1) Facts. A chassis manufacturer built a truck chassis with a reinforced chassis frame, a heavy-duty engine, and a structure to accommodate the manufacturer's mounting of drilling equipment on the chassis and the use of that drilling equipment off the highways. The manufacturer also bolted a pintle- type trailer hitch to a beam that is welded to, and operates as a rear cross member of, the chassis frame rails. The truck is designed to perform a function of transporting a load over public highways. (2) Analysis. This chassis can perform two functions. First, the chassis serves as a mobile carriage and mount for the drilling equipment installed on its bed. Second, the chassis can tow a trailer because it has a pintle-type trailer hitch. These dual capabilities demonstrate that the chassis was not specially designed to serve only as a mobile carriage and mount for its machinery. (3) Conclusion. The chassis fails to meet the test in paragraph (c)(3)(iii) of this section for treatment as mobile machinery because the chassis is not specially designed to serve only as a mobile carriage and mount for the drilling equipment. A similar conclusion would apply if the manufacturer reinforced the chassis to make the chassis capable of towing a trailer, but the manufacturer did not install the pintle hook. (d) Effective/applicability date. This section applies on and after the date of publication of these regulations in the Federal Register as final regulations. 0 Par. 7. Section 48.4041-8 is amended as follows: 0 1. Paragraph (b)(2)(ii), first sentence, is amended by removing the language ``A self-propelled'' and adding ``Before January 1, 2005, a self-propelled'' in its place. 0 2. Paragraph (b)(2)(iv) is added. The addition reads as follows: Sec. 48.4041-8 Definitions. * * * * * (b) * * * (2) * * * (iv) Off-highway transportation vehicles after December 31, 2004. For a description of certain vehicles that are not treated as highway vehicles after December 31, 2004, see Sec. 48.0-5(b)(3). * * * * * 0 Par. 8. The heading for subpart H is revised to read as follows: Subpart H--Motor Vehicles, Tires, and Taxable Fuel 0 Par. 9. New Sec. Sec. 48.4051-0, 48.4051-1, and 48.4051-2 are added to subpart H to read as follows: Sec. 48.4051-0 Overview; Heavy trucks, tractors, and trailers sold at retail. Sections 48.4051-1, 48.4051-2, and 48.4052-1 provide guidance under sections 4051 and 4052 relating to the tax on the first retail sale of certain truck and trailer chassis and bodies and certain tractors. This guidance includes rules relating to the imposition of tax, liability for tax, exclusions, and definitions. For rules under sections 4051 and 4052 on the treatment of leases, uses treated as sales, and the determination of price for which an [[Page 18549]] article is sold, see Sec. 145.4052-1 of this chapter. Sec. 48.4051-1 Imposition of tax; Heavy trucks, tractors, and trailers sold at retail. (a) Imposition of tax. Section 4051 imposes a tax on the first retail sale of the following articles (including in each case parts or accessories sold on or in connection with the article or with the sale of the article): (1) Automobile truck chassis and bodies. (2) Truck trailer and semitrailer chassis and bodies. (3) Tractors of the kind chiefly used for highway transportation in combination with a truck trailer or semitrailer. (b) Tax base and rate of tax. The tax is the applicable percentage of the price for which the article is sold. The applicable percentage is prescribed in section 4051(a)(1). For rules for the determination of price, see paragraph (d)(4) of this section and Sec. 145.4052-1(d) of this chapter. (c) Liability for tax--(1) In general. Except as provided in paragraph (c)(2) of this section, the person that makes the first retail sale (as defined in Sec. 48.4052-1(a)) of a taxable article listed in paragraph (a) of this section is liable for the tax imposed by section 4051. This person is referred to as the retailer in this section and Sec. 48.4051-2. (2) Exceptions; cross references. For cases in which a person other than the retailer is liable for the tax imposed under paragraph (a) of this section, see Sec. Sec. 48.4051-1(d)(2)(ii) and (iii) (relating to chassis and bodies sold for use as a component part of a highway vehicle) and Sec. 48.4051-1(e)(6)(ii) (relating to certain chassis completed as tractors). (d) Special rules--(1) Separate taxation of chassis and body. If a chassis is a component part of a highway vehicle, the taxability of the chassis is determined independently of, and without regard to, the body that is installed on the chassis. If a body is a component part of a highway vehicle, the taxability of the body is determined independently of, and without regard to, the chassis on which the body is installed. (2) Chassis and bodies sold for use as a component part of a highway vehicle--(i) In general. A chassis or body listed in paragraph (a) of this section is taxable under section 4051 only if such chassis or body is sold for use as a component part of a highway vehicle that is an automobile truck, truck trailer or semitrailer, or a tractor of the kind chiefly used for highway transportation in combination with a trailer or semitrailer. A chassis or body that is not listed in paragraph (a) of this section (for example, a chassis or body of a passenger automobile) is not taxable under section 4051 even though such chassis or body is used as a component part of a highway vehicle. (ii) Retailer; conditions for avoidance of liability. The retailer is not liable for tax on a chassis or body if, at the time of the first retail sale, the retailer-- (A) Has obtained from the buyer a certificate described in paragraph (d)(2)(iv) of this section stating, among other things, that the buyer will use the chassis or body as a component part of a vehicle that is not a highway vehicle; (B) Has no reason to believe that any information in the certificate is false; and (C) Has not received a notification from the IRS under paragraph (d)(2)(iv) of this section with respect to the buyer or the type of chassis or body. (iii) Liability of buyer. If a buyer that provides a certificate described in paragraph (d)(2)(iv) of this section uses the chassis or body to which the certificate relates as a component part of a highway vehicle, the buyer is liable for the tax imposed on the first retail sale of such chassis or body. (iv) Form of certificate. The certificate described in this paragraph (d)(2)(iv) consists of a statement that is signed under penalties of perjury by a person with authority to bind the buyer, is in substantially the same form as the model certificate in paragraph (d)(2)(v) of this section, and includes all the information necessary to complete the model certificate. The IRS may withdraw the right of a buyer to provide a certificate under this section if the buyer uses the chassis or body to which a certificate relates other than as stated in the certificate. The IRS may notify any retailer that the buyer's right to provide a certificate has been withdrawn. The IRS may also notify a retailer that sales of a specified type or types of chassis or bodies may not be made tax-free under this paragraph (d)(2) until further notification. The certificate may be included as part of any business records used to document a sale. (v) Model Certificate. Certificate (To support the tax-free sale of a chassis or body that is to be used as a component part of a non-highway vehicle) The undersigned buyer of a chassis or body listed in section 4051 (``Buyer'') hereby certifies the following under penalties of perjury: 1.--------------------------------------------------------------------- ----------------------------------------------------------------------- ----------------------------------------------------------------------- Seller's name, address, and employer identification number 2.--------------------------------------------------------------------- ----------------------------------------------------------------------- ----------------------------------------------------------------------- Buyer's name, address, and employer identification number 3.--------------------------------------------------------------------- Date and location of sale to Buyer 4. The article(s) listed below will not be used as a component part of a highway vehicle. If the article is a chassis, Buyer has listed the chassis Vehicle Identification Number. If the article is a body, Buyer has listed the body's identification number. ------------------------------------------------------------------------ ------------------------------------------------------------------------ ------------------------------------------------------------------------ ------------------------------------------------------------------------ ------------------------------------------------------------------------ ------------------------------------------------------------------------ 5. Buyer understands that it must be prepared to establish, by evidence satisfactory to an examining agent, how Buyer used the article. 6. Buyer has not been notified by the Internal Revenue Service that its right to provide a certificate has been withdrawn. 7. Buyer understands that if it uses a chassis or body listed in this certificate as a component part of a highway vehicle, Buyer is liable for the tax imposed by section 4051 of the Internal Revenue Code. 8. Buyer understands that Buyer may be liable for the section 6701 penalty (relating to aiding and abetting an understatement of tax liability) if this is an erroneous certification. 9. Buyer understands that the fraudulent use of this certificate may subject Buyer and all parties making any fraudulent use of this statement to a fine or imprisonment, or both, together with the costs of prosecution. ----------------------------------------------------------------------- Printed or typed name of person signing this certificate ----------------------------------------------------------------------- Title of person signing ----------------------------------------------------------------------- Signature and date signed (3) Sale of a completed unit. A sale of an automobile truck, truck trailer, or semitrailer is considered a sale of a chassis and of a body listed in paragraph (a) of this section. (4) Equipment installed on chassis or bodies. For purposes of section 4051, the sale price of a chassis or body includes any amount paid for equipment or machinery that is installed on and is an integral part of the chassis or body. Equipment or machinery is an integral part of a chassis or body if the equipment or machinery contributes to the highway transportation function of the chassis or [[Page 18550]] body. Examples of machinery or equipment that contributes to the highway transportation function of a chassis or body are loading and unloading equipment; towing winches; and all other machinery or equipment that contributes to the maintenance or safety of the vehicle, the preservation of cargo (other than refrigeration units), or the comfort or convenience of the driver or passengers. (5) Vehicle use. In determining whether a tractor, a truck body or chassis, or a truck trailer or semitrailer chassis or body is subject to the tax imposed by section 4051, the use (whether commercial, personal, recreational, or otherwise) of an article is immaterial. (e) Explanation of terms and exclusions; tractors, trucks, trailers--(1) Tractor. The term tractor means a highway vehicle primarily designed to tow a vehicle, such as a truck trailer or semitrailer. A vehicle equipped with air brakes and/or a towing package will be presumed to be a tractor unless it is established, based on all the vehicle's characteristics, that the vehicle is not primarily designed to tow a vehicle. However, a vehicle that is not equipped with air brakes and/or a towing package is a tractor if the vehicle is primarily designed to tow a vehicle. (2) Truck. The term truck means a highway vehicle primarily designed to transport its load on the same chassis as the engine even if it is also equipped to tow a vehicle, such as a trailer or semitrailer. (3) Primarily designed. The term primarily means principally or of first importance. Primarily does not mean exclusively. The function for which a vehicle is primarily designed is evidenced by physical characteristics such as the vehicle's capacity to tow a vehicle, carry cargo, and operate (including brake) safely when towing or carrying cargo. Towing capacity depends on the vehicle's gross vehicle weight (GVW) rating and gross combination weight (GCW) rating and whether the vehicle is configured to tow a trailer or semitrailer. Cargo carrying capacity depends on the vehicle's GVW rating and the configuration of the vehicle's bed or platform. If a vehicle is capable of more than one function, such as towing a vehicle and carrying cargo on the same chassis as the engine, the physical characteristics of the vehicle determine the purpose for which the vehicle is primarily designed. A vehicle that can both carry cargo on its chassis and tow a trailer is either a truck or tractor depending on which function is of greater importance. (4) Trailer--(i) In general. The term trailer means a non-self- propelled vehicle hauled, towed, or drawn by a separate truck or tractor. A trailer consists of a chassis and a body. A chassis is the frame that supports the trailer's suspension, axles, wheels, tires, and brakes. A body is the structure usually installed on the trailer chassis to accommodate the intended load of the trailer. In some instances, the body may itself constitute all or part of the intended load. (ii) Truck trailer. The term truck trailer means a trailer that carries all of its weight and the weight of its load on its own chassis. (iii) Semitrailer. The term semitrailer means a trailer, the front end of which is designed to be attached to, and rest upon, the vehicle that tows it. A portion of the semitrailer's weight and load also rests upon the towing vehicle. (5) Incomplete chassis cab; classification as a truck. An incomplete chassis cab is classified as a truck at the time of its sale if, at such time-- (i) The incomplete chassis cab is not equipped with any of the features listed in paragraph (e)(7) of this section; and (ii) The seller-- (A) Has obtained from the buyer a certificate described in paragraph (e)(8) of this section stating, among other things, that the buyer will equip the incomplete chassis cab as a truck; (B) Has no reason to believe that any information in the certificate is false; and (C) Has not received a notification under paragraph (e)(8) of this section with respect to the buyer. (6) Incomplete chassis cab; classification as a tractor--(i) In general. An incomplete chassis cab is classified as a tractor at the time of its sale if, at such time-- (A) The incomplete chassis cab is equipped with any of the features listed in paragraph (e)(7) of this section; or (B) The seller fails to satisfy one or more of the conditions set forth in paragraph (e)(5)(ii) of this section. (ii) Completion as a tractor. If no tax is imposed under section 4051(a)(1) on the sale of an incomplete chassis cab classified as a truck under paragraph (e)(5) of this section and the purchaser completes the incomplete chassis cab as a taxable tractor, the purchaser is liable for tax under section 4051(a)(1) on the purchaser's sale or use of the taxable tractor. (7) Incomplete chassis cab; features. The features referred to in paragraphs (e)(5)(i) and (e)(6)(i)(A) of this section are the following: (i) A device for supplying air or hydraulic pressure or electric or other power from the incomplete chassis cab to the brake system of a towed vehicle. (ii) A mechanism for protecting the incomplete chassis cab brake system from the effects of a loss of pressure in the brake system of a towed vehicle. (iii) A control linking the brake system of the incomplete chassis cab to the brake system of a towed vehicle. (iv) A control in the incomplete chassis cab for operating a towed vehicle's brakes independently of the incomplete chassis cab's brakes. (v) Any other equipment designed to establish or enhance the incomplete chassis cab's use as a tractor. (8) Incomplete chassis cab; certificate--(i) In general. The certificate described in this paragraph (e)(8) consists of a statement that is signed under penalties of perjury by a person with authority to bind the buyer, is in substantially the same form as the model certificate in paragraph (e)(8(ii) of this section, and includes all the information necessary to complete the model certificate. The IRS may withdraw the right of a buyer of vehicles to provide a certificate under this section if the buyer uses the vehicles to which a certificate relates other than as stated in the certificate. The IRS may notify any seller that the buyer's right to provide a certificate has been withdrawn. The certificate may be included as part of any business records normally used to document a sale. (ii) Model Certificate. Certificate (To support the completion of an incomplete chassis cab as a truck) The undersigned buyer of articles listed in section 4051 (``Buyer'') hereby certifies the following under penalties of perjury: 1.--------------------------------------------------------------------- ----------------------------------------------------------------------- ----------------------------------------------------------------------- Seller's name, address, and employer identification number 2.--------------------------------------------------------------------- ----------------------------------------------------------------------- ----------------------------------------------------------------------- Buyer's name, address, and employer identification number 3.--------------------------------------------------------------------- Date and location of sale to Buyer 4. Buyer certifies that Buyer will complete these incomplete chassis cabs listed below as trucks: ------------------------------------------------------------------------ ------------------------------------------------------------------------ VIN: VIN: ------------------------------------------------------------------------ VIN: VIN: ------------------------------------------------------------------------ VIN: VIN: ------------------------------------------------------------------------ VIN: VIN: ------------------------------------------------------------------------ [[Page 18551]] 5. Buyer has not been notified by the Internal Revenue Service that its right to provide a certificate has been withdrawn. 6. Buyer understands that if Buyer completes an incomplete chassis cab listed in this certificate as a taxable tractor described in section 4051(a)(1)(E) and then uses it or sells it, Buyer may be liable for the tax imposed by section 4051 on this sale or use. See 26 CFR 48.4051-1(e)(6)(ii) and 145.4052-1(c). 7. Buyer understands that Buyer may be liable for the section 6701 penalty (relating to aiding and abetting an understatement of tax liability) if this is an erroneous certification. 8. Buyer understands that the fraudulent use of this certificate may subject Buyer and all parties making any fraudulent use of this statement to a fine or imprisonment, or both, together with the costs of prosecution. ----------------------------------------------------------------------- Printed or typed name of person signing this certificate ----------------------------------------------------------------------- Title of person signing ----------------------------------------------------------------------- Signature and date signed (f) Exclusions--(1) In general. Tax is not imposed by section 4051 on the first retail sale of the following articles: (i) Automobile truck chassis or bodies that have practical and commercial fitness for use with a vehicle that has a GVW of 33,000 pounds or less. (ii) Truck trailer and semitrailer chassis or bodies that have practical and commercial fitness for use with a truck trailer or semitrailer that has a GVW of 26,000 pounds or less. (iii) Tractors that have-- (A) A GVW of 19,500 pounds or less; and (B) A GCW of 33,000 pounds or less. (2) Practical and commercial fitness. A chassis or body possesses practical fitness for use with a vehicle if it performs its intended function up to a generally acceptable standard of efficiency with the vehicle, and a chassis or body possesses commercial fitness for use with a vehicle if it is generally available for use with the vehicle at a price that is reasonably competitive with other articles that may be used for the same purpose. A truck chassis that has practical and commercial fitness for use with a vehicle having a GVW of 33,000 pounds or less is not subject to the tax imposed by section 4051 regardless of the body actually mounted on the chassis. A truck trailer or semitrailer chassis that has practical and commercial fitness for use with a vehicle having a GVW of 26,000 pounds or less is not subject to tax regardless of the body actually mounted on the chassis. A taxable chassis or body, as the case may be, remains subject to tax-- (i) Even if an exempt body is mounted on a taxable chassis or a taxable body is mounted on an exempt chassis; and (ii) The resulting vehicle is a highway vehicle. (3) Gross vehicle weight. (i) The term gross vehicle weight means the maximum total weight of a loaded vehicle. Except as otherwise provided in this paragraph (f)(3), the maximum total weight is the GVW rating of the article as specified by the manufacturer on the Manufacturer's Statement of Origin (or comparable document) or by the retailer of the completed article on a comparable document. In determining the GVW, the following rules apply: (A) The GVW rating must take into account, among other things, the strength of the chassis frame, the axle capacity and placement, and, if an article is specially equipped to the buyer's specifications, those specifications. (B) The manufacturer or retailer of an article listed in paragraph (a) of this section must specify the article's GVW rating at the time the article requires no additional manufacture other than-- (1) The addition of readily attachable articles, such as tire or rim assemblies or minor accessories; (2) The performance of minor finishing operations, such as painting; or (3) In the case of a chassis, the addition of a body. (C) If the IRS finds that a GVW rating by the manufacturer or a later seller is unreasonable in light of the facts and circumstances in a particular case, that GVW rating will not be used for purposes of section 4051. (D) The IRS may exclude from a GVW rating any readily attachable parts to the extent the IRS finds that the use of such parts in computing the GVW rating results in an inaccurate GVW rating. (E) If the following or similar ratings are inconsistent, the highest of these ratings is the GVW rating: (1) The rating indicated in a label or identifying device affixed to an article. (2) The rating set forth in sales invoice or warranty agreement. (3) The advertised rating for that article (or identical articles). (ii) The retailer must keep a record of the GVW rating for each chassis, body, or vehicle it sells. For this purpose, a record of the serial number of each such article is treated as a record of the GVW rating of the article if such rating is indicated by the serial number. The GVW rating must be retained as part of the retailer's records for each of its chassis, bodies, or vehicles. (4) Gross combination weight. (i) The term gross combination weight means the GVW of the tractor plus the GVW of any trailer or semitrailer that the tractor may safely tow. Unless a particular rating is unreasonable in light of the facts and circumstances in a particular case, the IRS will consider the GCW of a tractor to be the highest GCW rating specified on any of the following documents: (A) The Manufacturer's Statement of Origin (or comparable document) or a comparable document of a seller of the completed tractor. (B) A label or identifying device affixed to the completed tractor by the manufacturer or the seller. (C) A sales invoice or warranty agreement. (D) An advertisement for the tractor (or identical tractors). (ii) The retailer must keep a record of the GCW rating for each tractor it sells. The GCW rating must be retained as part of the retailer's records for each of its tractors. (g) Example. The following example illustrates the application of paragraphs (e)(1), (2), (3), and (4) of this section: Example. (1) Facts. (i) A vehicle has the capacity to tow truck trailers and semitrailers (trailers) that have a GVW of 20,000 pounds. The vehicle has a standard chassis cab (4-door with crew cab), accommodating five passengers, and is outfitted with certain luxury features. The cab has an electric trailer brake control that connects to the brakes of a towed trailer and to a hook up for trailer lights. The vehicle has two storage boxes behind the cab that can accommodate incidental items such as small tools and vehicle repair equipment. (ii) The vehicle has a GVW rating of 23,000 pounds and a GCW rating of 43,000 pounds. The vehicle is equipped with hydraulic disc brakes with a four wheel automatic braking system, a 300 horsepower engine, and a six-speed automatic transmission. The front axle of the vehicle has an 8,000 pound rating and the rear axle has a 15,000 pound rating. (iii) The vehicle has three types of hitching devices: A removable ball gooseneck hitch, a fifth wheel hitch, and a heavy duty trailer receiver hitch. The vehicle's platform, which is approximately 139 inches long, is designed with a rectangular well to accommodate the gooseneck and fifth wheel hitches (bed hitches). This platform slopes at the rear of the rectangular well and has tie down hooks. Optional removable steel stake rails can be placed around the platform. (2) Analysis. (i) Some characteristics of the vehicle such as its chassis cab with a GVW rating of 23,000 pounds, a 300 horsepower engine, a front axle with an 8,000 pound rating, and a rear axle with a 15,000 pound rating are consistent with either a cargo carrying or a towing function. In this case, however, the vehicle also has a GCW rating of 43,000 pounds and its engine, brakes, transmission, axle ratings, electric trailer brake control, trailer hook up lights, and hitches enable it to tow a trailer that has a GVW rating of 20,000 pounds. [[Page 18552]] (ii) When the vehicle's bed hitches are used to tow, the cargo carrying capacity of the vehicle is limited to the storage boxes behind the cab and is minimal in comparison to the GVW rating of the towed truck trailer or semitrailer. Neither the steel stake bed rails nor the tie down hooks significantly increase cargo carrying capacity when either of the bed hitches is used. Even if neither of the vehicle's two bed hitches is used, the design of the vehicle significantly reduces its cargo carrying capacity when compared to the cargo carrying capacity of a pickup truck body or a flatbed truck body installed on a comparable chassis. The significant reduction in cargo carrying capacity resulting from the vehicle's platform with its rectangular well and sloping platform at the rear of the rectangular well is evidence that the vehicle is not primarily designed to carry cargo. By accommodating the bed hitches, however, this platform configuration increases the vehicle's towing capacity and, in conjunction with the other features described above, makes it possible to safely tow a trailer with a GVW rating of 20,000 pounds. (3) Conclusion. The vehicle's physical characteristics, which maximize towing capacity at the expense of carrying capacity, establish that the vehicle is primarily designed to tow a vehicle, such as a truck trailer or semitrailer, rather than to carry cargo on its chassis. Thus, the vehicle is a tractor. (h) Effective/applicability date. This section applies on and after the date of publication of these regulations in the Federal Register as final regulations. Sec. 48.4051-2 Imposition of tax; parts and accessories. (a) Parts or accessories sold on or in connection with the sale of chassis, bodies, and tractors--(1) In general. (i) The tax imposed by section 4051 applies to parts or accessories sold on or in connection with, or with the sale of, any article specified in Sec. 48.4051-1(a). The tax applies whether or not the parts or accessories are separately billed by the retailer. (ii) If a taxable chassis or body is sold by the retailer without parts or accessories that are considered equipment essential for the operation or appearance of the taxable article, the sale of these parts or accessories by the retailer to the buyer of the taxable article will be considered, in the absence of evidence to the contrary, to have been made in connection with the sale of the taxable article even though they are shipped separately, whether at the same time or on a different date. (iii) Parts and accessories that are spares or replacements are not subject to the tax described in paragraph (a)(1)(i) of this section. (2) Example. The following example illustrates the application of this paragraph (a): Example. X buys from Retailer a chassis in a sale subject to the tax imposed by section 4051. At the time of the sale, bumpers were not attached to the chassis; rather, they had been ordered from Retailer and delivered to X at a later date. For purposes of the tax imposed by section 4051, the price of the chassis includes the price of the bumpers, regardless of when the Retailer delivered the bumpers or billed X for the bumpers. (b) Parts or accessories not sold on or in connection with the sale of chassis, bodies, and tractors--(1) In general. Section 4051(b)(1) imposes a tax on the installation of a part or accessory on a taxable article specified in Sec. 48.4051-1(a) within six months after the article was first placed in service. However, the tax imposed by section 4051(b)(1) does not apply if-- (i) The part or accessory is a replacement part or accessory; or (ii) The aggregate price of non-replacement parts and accessories (and their installation) for any vehicle does not exceed $1,000. (2) Application and rate of tax. The tax is the applicable percentage of the price of the part or accessory and its installation. The applicable percentage is prescribed in section 4051(b)(1). (3) Liability for tax. The owner, lessee, or operator of the vehicle on which the parts or accessories are installed is liable for this tax. The owner(s) of the trade or business that installs the parts or accessories is secondarily liable for this tax. (4) Definitions--(i) First placed in service. For purposes of this section, a vehicle is first placed in service on the date on which the owner of the vehicle took actual possession of the vehicle. This date can be established by the delivery ticket signed by the owner or other comparable document indicating delivery to, and acceptance by, the owner. (ii) Replacement part. The term replacement part means an item that is substantially similar to and intended to take the place of a vehicle part that has worn out or broken down, regardless of when it is ordered. (5) Example. The following example illustrates the application of this paragraph (b). Assume that during the periods described, the rate of tax is 12 percent of the price of the part or accessory and its installation. Example. X bought a vehicle in a sale that was subject to the tax imposed by section 4051 and first placed it in service on September 1, 2013. On October 1, 2013, X purchases and has installed non-replacement parts at a cost of $750. On November 1, 2013, X purchases and has installed additional non-replacement parts at a cost of $450. On December 1, 2013, X purchases and has installed additional non-replacement parts and accessories at a cost of $900. Although the price of each separate purchase and installation is less than $1,000, the aggregate price exceeds the $1,000 limit on November 1, 2013. Accordingly, on November 1, 2013, X is liable for tax of $144 (12 percent x ($750 + $450)) on account of the installations on October 1, and November 1, 2013. On December 1, 2013, X is liable for a tax of $108 (12 percent x $900) on account of the installation on that date. To report its liability X must file Form 720, Quarterly Federal Excise Tax Return, for the fourth calendar quarter of 2013 by January 31, 2014. (c) Effective/applicability date. This section applies on and after the date of publication of these regulations in the Federal Register as final regulations. 0 Par. 10. Section 48.4052-1 is revised to read as follows: Sec. 48.4052-1 Definition; first retail sale. (a) In general. For purposes of the tax imposed by section 4051, first retail sale means a taxable sale defined in paragraph (b) of this section. (b) Taxable sale; in general. A sale of an article described in Sec. 48.4051-1(a) is a taxable sale except in the following cases: (1) The sale is an exempt sale. A sale is an exempt sale if-- (i) The sale is a tax-free sale under section 4221; (ii) The sale is of a used article that had previously been sold tax-free under section 4221; or (iii) The article is sold for resale or leasing in a long-term lease and, at the time of sale, the seller-- (A) Has obtained from the buyer a certificate described in paragraph (d) of this section stating, among other things, that the buyer will either resell the vehicle or lease it in a long-term lease; (B) Has no reason to believe that any information in the certificate is false; and (C) Has not received a notification from the IRS under paragraph (d)(1) of this section with respect to the buyer. (2) There has been a prior sale of the article that is not an exempt sale. The previous sentence does not apply if the prior sale is described in paragraph (c)(1) of this section. (c) Special rule for trailers and semitrailers--(1) In general. A sale is described in this paragraph (c)(1) if the sale-- (i) Is a sale of a chassis or body of a truck trailer or semitrailer (``trailer or semitrailer''); (ii) Is not an exempt sale; and (iii) Occurs less than six months after the first sale of the trailer or semitrailer that is not an exempt sale. (2) Credit. In the case of a sale described in paragraph (c)(1) of this [[Page 18553]] section, any tax paid by the prior seller on account of its sale (and not at any time refunded to or credited against any other liability of the prior seller) is treated as a payment on behalf of the person (the subsequent seller) liable for the tax on the sale described in paragraph (c)(1) of this section. The subsequent seller may claim such payment as a credit against its liability for tax on the sale described in paragraph (c)(1) of this section if the following conditions are met: (i) The claim is made on Form 720, ``Quarterly Federal Excise Tax Return'' (or such other form as the IRS may designate) in accordance with the instructions for that form. (ii) The subsequent seller has not been repaid any portion of the tax by the prior seller and has not provided the prior seller with a written consent to the allowance of a credit or refund. (iii) The subsequent seller has records substantiating the amount of tax paid by the prior seller on its sale of the truck trailer or semitrailer. (d) Certificate--(1) In general. The certificate referred to in paragraph (b)(1)(iii) of this section is a statement that is signed under penalties of perjury by a person with authority to bind the buyer, is in substantially the same form as the model certificate provided in paragraph (d)(3) of this section, and contains all information necessary to complete the model certificate. The IRS may withdraw the right of a buyer of vehicles to provide a certificate under this section if the buyer uses the vehicles to which a certificate relates other than as stated in the certificate. The IRS may notify any seller that the buyer's right to provide a certificate has been withdrawn. The certificate may be included as part of any business records normally used to document a sale. (2) Effect of use other than as stated in certificate. If a buyer that provides a certificate described in paragraph (b)(1)(iii)(A) of this section uses or leases (in a short term lease) an article listed in the certificate, the sale of such article to the buyer is treated as the first retail sale of the article and the buyer is liable for the tax imposed on such sale. If the conditions of paragraph (b)(1)(iii)(A), (B), and (C) of this section are satisfied, the seller will not be liable for the tax imposed on such sale. (3) Model certificate. Certificate (To support nontaxable sale of articles listed in section 4051 for resale or long term lease under section 4052 of the Internal Revenue Code) The undersigned buyer of articles listed in section 4051 (``Buyer'') hereby certifies the following under penalties of perjury: 1.--------------------------------------------------------------------- ----------------------------------------------------------------------- ----------------------------------------------------------------------- Seller's name, address, and employer identification number 2.--------------------------------------------------------------------- ----------------------------------------------------------------------- ----------------------------------------------------------------------- Buyer's name, address, and employer identification number 3.--------------------------------------------------------------------- Date and location of sale to Buyer 4. The articles listed below will be either resold by Buyer or leased on a long term basis by Buyer. If the article is a chassis, Buyer has listed the chassis Vehicle Identification Number. If the article is a body, Buyer has listed the body's identification number. ------------------------------------------------------------------------ ------------------------------------------------------------------------ ------------------------------------------------------------------------ ------------------------------------------------------------------------ ------------------------------------------------------------------------ ------------------------------------------------------------------------ 5. Buyer understands that it must be prepared to establish, by evidence satisfactory to an examining agent, how each article bought under this certificate was used. 6. Buyer has not been notified by the Internal Revenue Service that its right to provide a certificate has been withdrawn. 7. Buyer understands that if it uses or leases (in a short term lease) an article listed in this certificate, Buyer will be liable for the tax imposed by section 4051(a)(1) on the article. See 26 CFR 48.4051-1 and 145.4052-1(c). 8. Buyer understands that Buyer may be liable for the section 6701 penalty (relating to aiding and abetting an understatement of tax liability) if this is an erroneous certification. 9. Buyer understands that the fraudulent use of this certificate may subject Buyer and all parties making any fraudulent use of this statement to a fine or imprisonment, or both, together with the costs of prosecution. ----------------------------------------------------------------------- Printed or typed name of person signing this certificate ----------------------------------------------------------------------- Title of person signing ----------------------------------------------------------------------- Signature and date signed (e) No installment payment of tax. If a lease is a taxable sale under Sec. 145.4052-1(b) of this chapter or an installment sale (or another form of sale under which the sales price is paid in installments), then the liability for the entire tax arises at the time of the lease or installment sale. No portion of the tax is deferred by reason of the fact that the sales price is paid in installments. (f) Effective/applicability date. This section applies on and after the date of publication of these regulations in the Federal Register as final regulations. 0 Par. 11. Section 48.4061(a)-1 is amended as follows: 0 1. Paragraph (d)(2)(ii), first sentence, is amended by removing the language ``A self-propelled'' and adding ``Before January 1, 2005, a self-propelled'' in its place. 0 2. Paragraph (d)(2)(iv) is added. The addition reads as follows: Sec. 48.4061(a)-1 Imposition of tax; exclusion for light-duty trucks, etc. * * * * * (d) * * * (2) * * * (iv) Off-highway transportation vehicles after October 21, 2004. For a description of certain vehicles that are not treated as highway vehicles after October 21, 2004, see Sec. 48.0-5(b)(3). * * * * * Subpart H [Amended] 0 Par. 12. Subpart H is amended by revising the undesignated center heading reading ``Tires, Tubes, and Tread Rubber'' to read ``Tires''. 0 Par. 13. Section 48.4071-1 is revised to read as follows: Sec. 48.4071-1 Tires; imposition of tax. (a) In general. (1) Tax is imposed by section 4071 on the sale by the manufacturer of a taxable tire with a maximum rated load capacity greater than 3,500 pounds. (2) See Sec. 48.4072-1(b) for the definition of the term taxable tire. (b) Tax base and computation of tax. The tax base is equal to the number of 10-pound increments, rounded down to the nearest ten pounds, by which the maximum rated load capacity exceeds 3,500 pounds. The tax is determined by multiplying this tax base by the rate of tax specified in section 4071(a). Thus, for example, a taxable tire with a maximum rated load capacity of 4,005 pounds is treated as having a maximum rated load capacity of 4,000 pounds and a tax base of 50 ((4000 - 3,500) / 10). The tax imposed on the tire is the rate of tax under section 4071(a) times 50. (c) Liability for tax. The manufacturer of a taxable tire is liable for the tax imposed by section 4071. (d) Effective/applicability date. This section applies on and after the date of [[Page 18554]] publication of these regulations in the Federal Register as final regulations. 0 Par. 14. Section 48.4071-2 is revised to read as follows: Sec. 48.4071-2 Determination of maximum rated load capacity. (a) In general. For purposes of the tax imposed by section 4071, the maximum rated load capacity is the maximum rated load rating inscribed on a taxable tire's sidewall provided the inscription meets the standards prescribed by the National Highway Traffic Safety Administration in its regulations. If a taxable tire has multiple maximum load ratings, the taxable tire's highest maximum load rating is the taxable tire's maximum rated load capacity for purposes of the tax. (b) Tampering. In the event of any tampering with, or the appearance of tampering with, the inscription of a taxable tire's maximum rated load capacity as described in paragraph (a) of this section, the tire's maximum rated load capacity is the maximum rated load capacity of a comparable tire. (c) Effective/applicability date. This section applies on and after the date of publication of these regulations in the Federal Register as final regulations. 0 Par. 15. Section 48.4071-3 is amended by: 0 1. Revising the section heading and paragraph (a). 0 2. Revising paragraph (c)(1). 0 3. Adding paragraph (e). 0 4. Removing the undesignated authority citation at the end of the section. The revisions and addition read as follows: Sec. 48.4071-3 Imposition of tax on tires delivered to manufacturer's retail outlet. (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 Sec. 48.4071-1. * * * * * (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. * * * * * (e) Effective/applicability date. This section applies on and after the date of publication of these regulations in the Federal Register as final regulations. Sec. 48.4071-4 [Removed] 0 Par. 16. Section 48.4071-4 is removed. 0 Par. 17. Section 48.4072-1 is amended by: 0 1. Revising paragraphs (b), (c), and (d). 0 2. Amending paragraph (e) by removing the second, third, and fourth sentences. 0 3. Revising paragraphs (f), (g), and (h). 0 4. Removing the undesignated authority citation at the end of the section. The revisions and addition read as follows: Sec. 48.4072-1 Definitions. * * * * * (b) Taxable tire--(1) In general. The term taxable tire means a tire-- (i) Of the type used on highway vehicles; (ii) That is wholly or in part made of rubber; and (iii) That is marked pursuant to federal regulations for for highway use. (2) Recapped and retreaded tires. The term taxable tire includes a used tire that is recapped or retreaded (whether from shoulder-to- shoulder or bead-to-bead) only if-- (i) The used tire had not previously been sold in the United States; (ii) The used tire is recapped or retreaded outside the United States; and (iii) When imported into the United States, the recapped or retreaded tire meets the requirements of section (b)(1) of this section. (c) Tires of the type used on highway vehicles. The term tires of the type used on highway vehicles means tires (other than tires of a type used exclusively on mobile machinery (within the meaning of Sec. 48.0-5(c))) of the type used on-- (1) Highway vehicles; or (2) Vehicles of the type used in connection with highway vehicles. (d) Rated load capacity. The term rated load capacity means the maximum load a tire is rated to carry at a specified inflation pressure. * * * * * (f) Super single tire. The term super single tire means a single tire greater than 13 inches in cross section width designed to replace two tires in a dual fitment. The term does not include any tire designed for steering or an all position tire. (g) Examples. The following examples illustrate the application of this section. Example 1. (1) Facts. (i) A foreign tire manufacturer manufactures a tire that meets the Federal Motor Vehicle Safety Standard for truck tires prescribed by the DOT. The tire is not of a type used exclusively on mobile machinery (within the meaning of Sec. 48.0-5(c)). This tire is partially made of rubber. The foreign manufacturer marks this tire for highway use pursuant to DOT regulations. The foreign manufacturer sells the tire for use in the foreign country. (ii) After use in the foreign country, a tire importer buys the tire and imports it into the United States. At the time of importation, the tread on this tire's casing meets the criteria for minimal tread on trucks used in interstate commerce as prescribed by the DOT. (2) Analysis. The imported tire is a taxable tire because the tire is of the type used on a highway vehicle and is not of a type used exclusively on mobile machinery, the tire is wholly or in part made of rubber, and the tire is marked pursuant to federal regulations for highway use. Example 2. (1) Facts. A tire manufacturer pays the tax imposed by section 4071(a) when it sells a tire that is (1) of the type used on highway vehicles; (2) wholly or in part made of rubber; and (3) marked pursuant to federal regulations for highway use. The tire does not have any design features to indicate that it is a tire of a type used exclusively on mobile machinery (within the meaning of Sec. 48.0-5(b)(3)(iii)). The purchaser of this tire puts the tire on mobile machinery described in Sec. 48.0-5(b)(3)(iii). (2) Analysis. A tire that is ``of the type used on highway vehicles'' and ``not of a type used exclusively on mobile machinery'' retains those characteristics regardless of how the tire is actually used. Therefore, the characterization of a tire as a taxable tire is not changed because the tire is actually used on a vehicle that is mobile machinery. (h) Effective/applicability date. This section applies on and after the date of publication of these regulations in the Federal Register as final regulations. Sec. 48.4073 [Removed] 0 Par. 18. Reserved Sec. 48.4073 is removed. 0 Par. 19. Section 48.4073-1 is revised to read as follows: [[Page 18555]] Sec. 48.4073-1 Exemption for tires sold for the exclusive use of the Department of Defense or the Coast Guard. (a) In general. Tax is not imposed by section 4071 on the sale of a taxable tire if-- (1) The manufacturer of the taxable tire meets the registration requirements of section 4222; and (2) The sale of the taxable tire is to the Department of Defense or the Coast Guard for the exclusive use of the Department of Defense or the Coast Guard, (b) Sales for resale. A manufacturer may sell a taxable tire tax- free under section 4073 and this section only if the sale is directly made to either the Department of Defense or the Coast Guard for such agency's exclusive use. Accordingly, a sale may not be made taxfree to a dealer for resale to the Department of Defense or the Coast Guard for its exclusive use, even though it is known at the time of sale by the manufacturer that the article will be so resold. (c) Certificate--(1) Effect of certificate. A manufacturer will not be liable for tax on the sale of a taxable tire if, at the time of the sale, the manufacturer has obtained from the buyer an unexpired certificate described in paragraph (c)(2) of this section and has no reason to believe any information in the certificate is false. A buyer that provides an erroneous certificate described in paragraph (c)(2) of this section is liable for any tax imposed on the sale to which the certificate relates. (2) Form of certificate. The certificate described in this paragraph (c)(2) is a statement by the Department of Defense or the Coast Guard that is signed under penalties of perjury by a person with authority to bind the Department of Defense or the Coast Guard, is in substantially the same form as the model certificate provided in paragraph (c)(3) of this section, and contains all information necessary to complete the model certificate. A new certificate or notice that the current certificate is invalid must be given if any information in the current certificate changes. The certificate may be included as part of any business records normally used to document a sale. (3) Model Certificate. Certificate (To support the tax-free sales of tires to the Department of Defense or the Coast Guard under section 4073 of the Internal Revenue Code) The undersigned buyer of taxable tires (``Buyer'') hereby certifies the following under penalties of perjury: 1.--------------------------------------------------------------------- ----------------------------------------------------------------------- ----------------------------------------------------------------------- Manufacturer's name, address, and employer identification number 2.--------------------------------------------------------------------- ----------------------------------------------------------------------- ----------------------------------------------------------------------- Buyer's name, address, and employer identification number 3.--------------------------------------------------------------------- Date and location of sale to Buyer 4. The tire(s) to which this certificate applies will be for the exclusive use of Buyer (that is, the Department of Defense or the Coast Guard). 5. This certificate applies to Buyer's purchases from Manufacturer as follows (complete as applicable): a. A single purchase on invoice or delivery ticket number __. b. All purchases between __ (effective date) and __ (expiration date), a period not exceeding 12 calendar quarters after the effective date, under account or order number(s) __. If this certificate applies only to Buyer's purchases for certain locations, check here __ and list the locations. ----------------------------------------------------------------------- ----------------------------------------------------------------------- ----------------------------------------------------------------------- 6. Buyer will provide a new certificate to the Manufacturer if any information in this certificate changes. 7. Buyer understands that Buyer may be liable for the section 6701 penalty (relating to aiding and abetting an understatement of tax liability) if this is an erroneous certification. 8. Buyer understands that the fraudulent use of this certificate may subject Buyer and all parties making any fraudulent use of this statement to a fine or imprisonment, or both, together with the costs of prosecution. ----------------------------------------------------------------------- Printed or typed name of person signing this certificate ----------------------------------------------------------------------- Title of person signing ----------------------------------------------------------------------- Signature and date signed (d) Effective/applicability date. This section applies on and after the date of publication of these regulations in the Federal Register as final regulations. 0 Par. 20. Section 48.4073-2 is revised to read as follows: Sec. 48.4073-2 American National Red Cross. (a) For the exemption allowed to the American National Red Cross from the tax imposed by section 4071, see the Secretary's Authorization, 1979-1 C.B. 478 (See Sec. 601.601(d)(2)(ii)(b) of this chapter.) (b) Effective/applicability date. This section applies on and after the date of publication of these regulations in the Federal Register as final regulations. Sec. Sec. 48.4073-3 and 48.4073-4 [Removed] 0 Par. 21. Sections 48.4073-3 and 48.4073-4 are removed. Sec. 48.4081-1 [Amended] 0 Par. 22. Section 48.4081-1(b) is amended by removing the language ``Sec. 48.4061(a)-1(d)'' in the definition of Diesel-powered highway vehicle and adding ``Sec. 48.0-5'' in its place. 0 Par. 23. Section 48.4221-7 is amended by: 0 1. Revising the section heading and paragraph (a). 0 2. Removing paragraph (b) and redesignating paragraph (c) as paragraph (b). 0 3. Revising redesignated paragraph (b)(2). 0 4. Adding new paragraph (c). The revisions and addition read as follows: Sec. 48.4221-7 Tax-free sale of tires for use on other articles. (a) In general. Under section 4221(e)(2), tax is not imposed by section 4071 on the sale of a taxable tire if-- (1) The taxable tire is sold for use by the purchaser for sale on or in connection with the sale of another article manufactured or produced by the purchaser; (2) The other article is to be sold by the purchaser-- (i) In a tax-free sale for export, for use as supplies for vessels or aircraft, to a state or local government for its exclusive use, or to a nonprofit educational organization for its exclusive use; or (ii) For any of such purposes in a sale that would be tax-free but for the fact that the other article is not subject to tax under section 4051 or 4064; (3) The registration requirements of section 4222 and the regulations thereunder are met; and (4) The proof, described in paragraph (b) of this section, of the disposition of the other article, is timely received by the manufacturer. (b) * * * (2) Required information--(i) In general. The information referred to in paragraph (b)(1) of this section is a statement that is signed under penalties of perjury by a person with authority to bind the purchaser, is in substantially the same form as the model certificate provided in paragraph (b)(2)(ii) of this section, and contains all information necessary to complete the model certificate. For purchasers that are not required to be registered under section 4222, the IRS may withdraw the right of a purchaser of a taxable tire to provide a certificate under this section if the purchaser uses the tire to which a [[Page 18556]] certificate relates other than as stated in the certificate. The IRS may notify any manufacturer to whom such purchaser has provided a certificate that the purchaser's right to provide a certificate has been withdrawn. The certificate may be included as part of any business records normally used to document a sale. (ii) Model certificate. Certificate (To support the nontaxable sale of taxable tires by the manufacturer when sold for use on or in connection with the sale of another article manufactured or produced by the buyer and sold by the buyer in a sale that meets the requirements of section 4221(e)(2)) The undersigned buyer of taxable tires (``Buyer'') hereby certifies the following under penalties of perjury: 1.--------------------------------------------------------------------- ----------------------------------------------------------------------- ----------------------------------------------------------------------- Manufacturer's name, address, employer identification number, and registration number 2.--------------------------------------------------------------------- ----------------------------------------------------------------------- ----------------------------------------------------------------------- Buyer's name, address, employer identification number, and registration number (if required) 3.--------------------------------------------------------------------- Date and location of sale to Buyer 4. The taxable tire(s) listed below, by its (their) United States Department of Transportation identification number(s), are covered by this certificate ------------------------------------------------------------------------ ------------------------------------------------------------------------ ------------------------------------------------------------------------ ------------------------------------------------------------------------ ------------------------------------------------------------------------ ------------------------------------------------------------------------ 5. The taxable tire(s) listed in this certificate that were purchased or shipped on the date specified in entry 3 have been used on or in connection with the sale of __ (describe product sold by Buyer) by Buyer and such sale was-- (complete line (i), (ii), (iii), or (iv), whichever is applicable) (i) for export by __ (Name of carrier) to __ (Name of foreign country or possession) and was so exported on __ (Date). (A copy of the bill of lading or other proof of exportation is attached.) (ii) for use as supplies on __ (Name of vessel or aircraft) that is registered in __ (Name of country in which vessel or aircraft is registered). (iii) to __ (Name of state or local government). (iv) to __ (Name and address of the nonprofit educational organization). 6. Buyer understands that it must be prepared to establish, by evidence satisfactory to an examining agent, how each tire bought under this certificate was used. 7. Check here __ if Buyer is not required to be registered with the Internal Revenue Service because Buyer is a state or local government, a foreign person buying for export, or the United States. 8. Buyer understands that Buyer may be liable for the section 6701 penalty (relating to aiding and abetting an understatement of tax liability) if this is an erroneous certification. 9. Buyer understands that the fraudulent use of this certificate may subject Buyer and all parties making any fraudulent use of this statement to a fine or imprisonment, or both, together with the costs of prosecution. ----------------------------------------------------------------------- Printed or typed name of person signing this certificate ----------------------------------------------------------------------- Title of person signing ----------------------------------------------------------------------- Signature and date signed (c) Effective/applicability date. This section applies on and after the date of publication of these regulations in the Federal Register as final regulations. 0 Par. 24. Section 48.4221-8 is amended by: 0 1. Revising the section heading and paragraph (a). 0 2. Removing the second paragraph (b), Registration requirements for tires, tubes, and tread rubber; vendees purchasing tax-free. 0 3. Revising paragraphs (c) and (d). 0 4. Removing paragraphs (e) and (f). The revisions read as follows: Sec. 48.4221-8 Tax-free sales of tires used on intercity, local, and school buses. (a) In general. Under section 4221(e)(3), tax is not imposed by section 4071 on the sale of a taxable tire for use by the buyer on or in connection with a qualified bus, as defined in paragraph (b) of this section, if-- (1) The registration requirements of section 4222 and the regulations thereunder are met; (2) At the time of sale, the manufacturer of the taxable tire-- (i) Possesses a certificate (in the form described in paragraph (c)(2) of this section) from the buyer of a taxable tire, in which, among other things, the buyer certifies that the buyer will use the taxable tire on or in connection with a qualified bus; (ii) Has no reason to believe that any information in the certificate described in paragraph (c) of this section is false; and (iii) Has not received a notification from the IRS under paragraph (c)(2) of this section with respect to the buyer. * * * * * (c) Certificate--(1) Effect of certificate. A manufacturer will not be liable for tax on the sale of a taxable tire if the conditions of paragraph (a)(2) of this section are satisfied. In such a case, a buyer that provides an erroneous certificate described in paragraph (c)(2) of this section is liable for any tax imposed on the sale to which the certificate relates. (2) In general. The certificate referred to in paragraph (a)(2) of this section is a statement that is signed under penalties of perjury by a person with authority to bind the buyer, is in substantially the same form as the model certificate provided in paragraph (c)(3) of this section, and contains all information necessary to complete the model certificate. For purchasers that are not required to be registered under section 4222, the IRS may withdraw the right of a buyer of a taxable tire to provide a certificate under this section if the buyer uses the tires to which a certificate relates other than as stated in the certificate. The IRS may notify any manufacturer to whom the buyer has provided a certificate that the buyer's right to provide a certificate has been withdrawn. The certificate may be included as part of any business records normally used to document a sale. (3) Model certificate. Certificate (To support the nontaxable sale of taxable tires used on intercity, local, and school buses) The undersigned buyer of taxable tires (``Buyer'') hereby certifies the following under penalties of perjury: 1.--------------------------------------------------------------------- ----------------------------------------------------------------------- ----------------------------------------------------------------------- Manufacturer's name, address, employer identification number, and registration number 2.--------------------------------------------------------------------- ----------------------------------------------------------------------- ----------------------------------------------------------------------- Buyer's name, address, employer identification number, and registration number 3.--------------------------------------------------------------------- Date and location of sale to Buyer 4. The taxable tire(s) listed below, by its (their) United States Department of Transportation identification number(s), will be used on intercity, local, and school buses. ------------------------------------------------------------------------ ------------------------------------------------------------------------ ------------------------------------------------------------------------ ------------------------------------------------------------------------ ------------------------------------------------------------------------ ------------------------------------------------------------------------ 5. Buyer understands that it must be prepared to establish, by evidence [[Page 18557]] satisfactory to an examining agent, how each tire bought under this certificate was used. 6. Check here ___ if Buyer is not required to be registered with the Internal Revenue Service because Purchaser is a state or local government or the United States. 7. Buyer understands that Buyer may be liable for the section 6701 penalty (relating to aiding and abetting an understatement of tax liability) if this is an erroneous certification. 8. Buyer understands that the fraudulent use of this certificate may subject Buyer and all parties making any fraudulent use of this statement to a fine or imprisonment, or both, together with the costs of prosecution. ----------------------------------------------------------------------- Printed or typed name of person signing this certificate ----------------------------------------------------------------------- Title of person signing ----------------------------------------------------------------------- Signature and date signed (d) Effective/applicability date. This section applies on and after the date of publication of these regulations in the Federal Register as final regulations. Sec. 48.6416(c)-1 [Removed] 0 Par. 25. Section 48.6416(c)-1 is removed. 0 Par. 26. For each section listed in the tables, remove the language in the ``Remove'' column from wherever it appears in the paragraph and add in its place the language in the ``Add'' column as set forth below: ------------------------------------------------------------------------ Section Remove Add ------------------------------------------------------------------------ Sec. 48.4071-3(b) Second tires or tubes.... taxable tires. sentence. Fourth sentence................. tires or inner taxable tires. tubes. Fifth sentence.................. tires............. taxable tires. Sixth sentence.................. taxable tires. and taxable tires. inner tubes. Sec. 48.4071-3(c)(1) tires or inner taxable tires. Introductory text. tubes. Sec. 48.4071-3(c)(1)(i)....... tires or inner taxable tires. tubes. tires or tubes.... taxable tires. tires and inner taxable tires. tubes. Sec. 48.4071-3(c)(2)(i) Second tires and inner taxable tires. sentence. tubes. Third sentence.................. tires or inner taxable tires. tubes. Fourth sentence................. Tires and inner Taxable tires. tubes. taxable tires. tires and tubes... Seventh sentence................ tires and inner taxable tires. tubes. taxable tires tires and tubes... tires or tubes.... Eighth sentence................. tires and inner taxable tires. tubes. tire or inner tube Sec. 48.4071-3(c)(2)(ii) First tires and tubes... taxable tires. sentence (Example). Third sentence (Example)........ tires and inner taxable tires. tubes. Fourth sentence (Example)....... tires or inner taxable tires. tubes. tires and tubes... Sec. 48.4071-3(c)(3)(i)....... tire or inner tube taxable tire. Sec. 48.4071-3(c)(3)(ii)...... tire or inner tube taxable tire. Sec. 48.4071-3(d)(1) First tires and inner taxable tires. sentence. tubes. Second sentence................. tires or inner taxable tires. tubes. Sec. 48.4071-3(d)(2).......... tires and inner taxable tires. tubes. Sec. 48.4071-3(d)(3)(i) First tire or inner tube taxable tire. sentence. Second sentence................. tire or inner tube taxable tire. Sec. 48.4071-3(d)(3)(ii) Third tires and tubes taxable tires. sentence (Example). (each of the two times it appears). Fourth sentence (Example)....... tires or inner taxable tires. tubes. Sec. 48.4081-1(b)............. 48.4061(a)-1(d)... 48.0-5 of this chapter Redesignated Sec. 48.4221- tire or inner tube taxable tire. 7(b)(1). Second sentence................. tire or inner tube taxable tire. Third sentence.................. tire or inner tube taxable tire. Sec. 48.6421-4(c)............. 48.4061(a)-1(d)... 48.0-5 ------------------------------------------------------------------------ PART 145--TEMPORARY EXCISE TAX REGULATIONS UNDER THE HIGHWAY REVENUE ACT OF 1982 (PUB. L. 97-424) 0 Par. 27. The authority citation for part 145 is amended by adding the following entry in numerical order to read in part as follows: Authority: 26 U.S.C. 7805.* * * Section 145.4052-1 also issued under 26 U.S.C. 4052. 0 Par. 28. Section 145.4051-1 is revised to read as follows: Sec. 145.4051-1 Imposition of tax on heavy trucks, tractors, and trailers sold at retail. (a) For rules relating to the imposition of the tax imposed by section 4051 and related rules on the tax base, liability for tax, explanation of terms, and exclusions, see Sec. 48.4051-1 through Sec. 48.4052-2 of this chapter. (b) This section applies on and after the date on which these regulations are published as final regulations in the Federal Register. 0 Par. 29. Section 145.4052-1 is amended by: 0 1. Revising paragraph (a). 0 2. Adding two sentences after the first sentence in paragraph (d)(1). 0 3. Removing the last sentence in paragraph (d)(8)(iii). 0 4. Revising paragraph (g). The revisions read as follows: Sec. 145.4052-1 Special rules and definitions. (a) First retail sale. For the definition of first retail sale, see Sec. 48.4052-1 of this chapter. * * * * * (d) * * * (1) * * *. Total consideration paid for a chassis or body includes charges for equipment installed on the chassis or body. See Sec. 48.4051-1(d)(4). * * * * * * * * (g) Effective/applicability date. This section applies on and after the date of publication of these regulations in the Federal Register as final regulations. Sec. 145.4061-1 [Removed] 0 Par. 30. Section 145.4061-1 is removed. [[Page 18558]] 0 Par. 31. For each section listed in the tables, remove the language in the ``Remove'' column and add in its place the language in the ``Add'' column as set forth below: ------------------------------------------------------------------------ ------------------------------------------------------------------------ Sec. 145.4052-1(b)(1) First Sec. 145.4051-1. Sec. 48.4051-1 sentence. of this chapter. Second sentence................. paragraph (a)(2) Sec. 48.4052- of this section. 1(b) of this chapter. Sec. 145.4052-1(b)(2)......... Sec. 145.4051-1. Sec. 48.4051-1 of this chapter. paragraph (a)(2) Sec. 48.4052- of this section. 1(b) of this chapter. Sec. 145.4052-1(c)(1)......... Sec. 145.4051-1. Sec. 48.4051-1 of this chapter. Sec. 145.4052-1(c)(5)(ii)..... 4216(a), 4216(f).. 4052(b)(1)(A) and (B), 4216(a). Sec. 145.4052-1(d)(1) Fourth Installation...... installation. sentence. ------------------------------------------------------------------------ John Dalrymple, Deputy Commissioner for Services and Enforcement. [FR Doc. 2016-06881 Filed 3-30-16; 8:45 am] BILLING CODE 4830-01-P
![18544
Proposed Rules Federal Register
Vol. 81, No. 62
Thursday, March 31, 2016
This section of the FEDERAL REGISTER at (202) 317–6901 (not toll-free a truck, trailer, or tractor for resale or
contains notices to the public of the proposed numbers). long term leasing must have to
issuance of rules and regulations. The substantiate a tax-free sale; § 48.4052–
purpose of these notices is to give interested SUPPLEMENTARY INFORMATION:
2(b), describing the certificate a seller of
persons an opportunity to participate in the Paperwork Reduction Act a trailer must have to avoid the four
rule making prior to the adoption of the final
The collection of information percent price markup for resale within
rules.
contained in this notice of proposed six months; § 48.4073–1(c), describing
rulemaking has been submitted to the the certificate a taxable tire
DEPARTMENT OF THE TREASURY Office of Management and Budget for manufacturer must have to make a tax-
review in accordance with the free sale to the Department of Defense
Internal Revenue Service Paperwork Reduction Act of 1995 (44 or the Coast Guard; § 48.4221–7(c),
U.S.C. 3507(d)). Comments on the describing the certificate a manufacturer
26 CFR Parts 41, 48, and 145 collection of information should be sent must have to make a tax-free sale of a
to the Office of Management and taxable tire when sold for use or in
[REG–103380–05] connection with the sale of another
Budget, Attn: Desk Officer for the
RIN 1545–BE31 Department of the Treasury, Office of article manufactured by the purchaser
Information and Regulatory Affairs, and sold by the purchaser in a sale that
Excise Tax; Tractors, Trailers, Trucks, Washington, DC 20503, with copies to meets the requirements of section
and Tires; Definition of Highway the Internal Revenue Service, Attn: IRS 4221(e)(2); and § 48.4221–8(c),
Vehicle Reports Clearance Officer, describing the certificate a taxable tire
SE:W:CAR:MP:T:T:SP, Washington, DC manufacturer must have to make a tax-
AGENCY: Internal Revenue Service (IRS), free sale of taxable tires for intercity,
Treasury. 20224. Comments on the collection of
information should be received by May local and school buses. This information
ACTION: Notice of proposed rulemaking. is required to obtain a tax benefit and
31, 2016. Comments are specifically
meet a taxpayer’s recordkeeping
SUMMARY: This document contains requested concerning:
Whether the proposed collection of obligations under section 6001. This
proposed regulations relating to the information will be used by the IRS to
excise taxes imposed on the sale of information is necessary for the proper
substantiate claims for tax benefits. The
highway tractors, trailers, trucks, and performance of the functions of the
likely recordkeepers are businesses.
tires; the use of heavy vehicles on the Internal Revenue Service, including
Estimated total annual reporting and/
highway; and the definition of highway whether the information will have or recordkeeping burden: 750 hours.
vehicle related to these and other taxes. practical utility; Estimated average annual burden
These proposed regulations reflect The accuracy of the estimated burden hours per respondent and/or
legislative changes and court decisions associated with the proposed collection recordkeeper varies from .10 hour to .40
regarding these topics. These proposed of information; hours, depending on individual
regulations affect manufacturers, How the quality, utility, and clarity of circumstances, with an estimated
producers, importers, dealers, retailers, the information to be collected may be average of .25 hours.
and users of certain highway tractors, enhanced; Estimated number respondents and/
trailers, trucks, and tires. How the burden of complying with or recordkeepers: 3,000.
the proposed collection of information An agency may not conduct or
DATES: Written and electronic comments
may be minimized, including through sponsor, and a person is not required to
and requests for a public hearing must
the application of automated collection respond to, a collection of information
be received by June 29, 2016.
techniques or other forms of information unless it displays a valid control
ADDRESSES: Send submissions to: technology; and number assigned by the Office of
CC:PA:LPD:PR (REG–103380–05), Room Estimates of capital or start-up costs Management and Budget.
5203, Internal Revenue Service, P.O. and costs of operation, maintenance, Books or records relating to a
Box 7604, Ben Franklin Station, and purchase of services to provide collection of information must be
Washington, DC 20044. Submissions information. retained as long as their contents may
may be hand-delivered to: The collections of information in become material in the administration
CC:PA:LPD:PR Monday through Friday these proposed regulations are in of any internal revenue law. Generally,
between the hours of 8 a.m. and 4 p.m. § 48.4051–1(e)(8), describing the tax returns and tax return information
to: CC:PA:LPD:PR (REG–103380–05), certificate the seller of an incomplete are confidential, as required by 26
Courier’s Desk, Internal Revenue chassis cab must have to substantiate a U.S.C. 6103.
Service, 1111 Constitution Avenue NW., tax-free sale; § 48.4051–1(f)(3)(ii),
Washington, DC, or sent electronically describing the record of gross vehicle Background
mstockstill on DSK4VPTVN1PROD with PROPOSALS
via the Federal eRulemaking Portal at weight (GVW) a seller of a truck, trailer, This document contains proposed
http://www.regulations.gov (IRS REG– or tractor must maintain to substantiate amendments to the Highway Use Tax
1103380–05). taxable and nontaxable sales; § 48.4051– Regulations (26 CFR part 41), the
FOR FURTHER INFORMATION CONTACT: 1(f)(4)(ii), describing the record of gross Manufacturers and Retailers Excise Tax
Concerning the proposed regulations, combination weight (GCW) a seller of a Regulations (26 CFR part 48), and the
Celia Gabrysh, at (202) 317–6855; tractor must maintain to substantiate Temporary Excise Tax Regulations
concerning submissions of comments or taxable and nontaxable sales; § 48.4052– Under The Highway Revenue Act of
a request for a hearing Regina Johnson 1(c), describing the certificate a seller of 1982 (Pub. L. 97–424) (26 CFR part 145).
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![18546 Federal Register / Vol. 81, No. 62 / Thursday, March 31, 2016 / Proposed Rules
public highway is substantially limited include any manufactured home on a on the chassis. This revenue ruling
or impaired. The enactment of section frame that has axles and wheels. This predates and is inconsistent with the
7701(a)(48) effectively disqualified an definition classifies a manufactured language in section 4051(a)(1), which
asphalt semitrailer similar to the ones home of the type at issue in Horton lists a chassis and a body as separate
described in Flow Boy and Gateway Homes, Inc. v. United States, 357 F.3d taxable articles. This revenue ruling will
from the off-highway exception because 1209 (11th Cir. 2004), as a truck trailer be obsoleted after publication of the
its special design does not substantially because all of its load and weight is final regulations.
limit or impair its capability to transport carried on its own chassis and it is
a load over a public highway. The designed to be towed. A consequence of Taxable Tires
example in the proposed regulations this characterization is that the vehicle Effective January 1, 2005, section
illustrates the analysis of whether a that tows this manufactured home is a 4071 imposes a tax on taxable tires for
vehicle is a highway vehicle under tractor as defined in section each ten pounds of the maximum rated
section 7701(a)(48). 4051(a)(1)(E). Thus, under the proposed load capacity that exceeds 3,500
The second example concerns the regulations, toters, as the vehicles that pounds. The proposed regulations
mobile machinery exception and tow these manufactured homes are reflect this change and remove
reflects the decision in Florida Power & known in the industry, would be taxable references in existing regulations to
Light Co. v. United States, 375 F.3d as tractors. While this result is different tread rubber, inner tubes, and the
1119 (Fed. Cir. 2004), which holds that from the decision in Horton Homes, determination of a tire’s weight. The
a vehicle that can perform more than which held that toters are not taxable proposed regulations also define rated
one transportation function is not tractors, that decision expressly noted load capacity and super single tire, and
specially designed to serve ‘‘only’’ as a that ‘‘Congress did not define ‘trailers or address multiple load ratings and the
mobile carriage and mount. See also semitrailers,’ [in the statute] nor has the consequences of tampering with a tire’s
Schlumberger Technology Corp. and Treasury promulgated regulations maximum load rating. The proposed
Subsidiaries v. United States, 55 Fed. defining those terms’’ and thus applied regulations also provide rules under
Cl. 203 (2003). a dictionary definition of the term section 4073 for making tax-free sales of
Retail Tax on Tractors, Trailers, and ‘‘trailer’’ to determine whether toters are tires for the exclusive use of the
Trucks taxable. Id. at 1212 n.6. These proposed Department of Defense and the Coast
regulations fill in the regulatory gap Guard. In addition, the proposed
The proposed regulations reorganize faced by the Eleventh Circuit by regulations provide model certificates to
and partially restate the temporary providing a definition of ‘‘trailer’’ that support these sales, as well as sales of
regulations that address the retail tax on will clarify the determination of tires by manufacturers for use on or in
tractors, trailers, and trucks. Proposed whether a vehicle is a taxable tractor. connection with the sale of another
§ 48.4051–1(e) revises the definitions of Proposed § 48.4051–1(f) provides article manufactured by the purchaser
tractor and truck and provides a model exclusions from the tax imposed by and sold by the purchaser in a sale that
certificate for a seller to establish the tax section 4051 for certain trucks and meets the requirements of section
status of an incomplete chassis cab. If trailers that are below a certain GVW 4221(e)(2) and sales of taxable tires to be
the buyer of an incomplete chassis cab and tractors that are below a certain used on intercity, local, and school
certifies to the seller that the buyer will GVW and a certain GCW. Proposed buses (section 4221(e)(3)).
not complete the incomplete chassis cab § 48.4051–1(f) defines GVW and GCW
as a taxable tractor, the seller may treat and also provides the related Proposed Applicability Date
the sale of the incomplete chassis cab as recordkeeping requirements to support The regulations generally are
the sale of a truck or small tractor. these exclusions. proposed to apply on and after the date
Consequently, no tax is imposed on the Proposed § 48.4051–2 modifies the of publication of a Treasury decision
sale of an incomplete chassis cab when temporary regulations to reflect the adopting these rules as final regulations
accompanied by a qualifying certificate. statutory increase in the aggregate dollar in the Federal Register.
In the absence of this certificate, the value of parts and accessories that may
seller must treat the sale of an be installed on a taxable article without Availability of IRS Documents
incomplete chassis cab as the sale of a incurring a tax liability. The IRS revenue rulings and the
taxable tractor. This rule generally Proposed § 48.4052–1 supplements notice cited in this preamble are
restates § 145.4051–1(e)(1) and is the existing definition of taxable sale to published in the Internal Revenue
consistent with the interpretation of the include the resale of an unused article Cumulative Bulletin and are available at
existing rule in Freightliner of Grand that had been previously sold tax-free. www.irs.gov.
Rapids, Inc. v. United States, 351 F.
Chassis Characterization Special Analyses
Supp. 2d 718, 723 (2004).
Consistent with the temporary The proposed regulations provide that Certain IRS regulations, including this
regulations, the proposed regulations if a chassis is a component part of a one, are exempt from the requirements
define the terms tractor and truck by highway vehicle, the taxability of the of Executive Order 12866, as
reference to the primary design of a chassis is determined independent of, supplemented and reaffirmed by
vehicle. For purposes of determining and without regard to, the body that is Executive Order 13563. Therefore, a
whether a vehicle is ‘‘primarily installed on the chassis. Likewise, if a regulatory flexibility assessment is not
designed’’ as a tractor or a truck, body is a component part of a highway required. It also has been determined
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proposed § 48.4051–1(g) also includes vehicle, the taxability of the body is that section 553(b) of the Administrative
an example and reflects Rev. Rul. 2004– determined independent of, and Procedure Act (5 U.S.C. chapter 5) does
80 (2004–2 CB 164), which applied the without regard to, the chassis on which not apply to these regulations. It is
primarily designed test to determine the body is installed. This proposed rule hereby certified that the collection of
whether a vehicle was a tractor or a is contrary to the result in Rev. Rul. 69– information in these regulations will not
truck. 205 (1969–1 CB 277), which holds that have a significant economic impact on
The definition of truck trailer in an otherwise taxable chassis is not a substantial number of small entities.
proposed § 48.4051–1(e)(4)(ii) would taxable if a motorhome body is installed This certification is based on the fact
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![Federal Register / Vol. 81, No. 62 / Thursday, March 31, 2016 / Proposed Rules 18547
that the time required to secure and PART 41—EXCISE TAX ON USE OF mobile machinery (as defined in this
maintain the required information is CERTAIN HIGHWAY MOTOR section) satisfies the design-based test of
minimal (estimated at an average of 15 VEHICLES section 6421(e)(2)(C)(iii). To qualify as
minutes) and taxpayers would off-highway business use, however, the
ordinarily already collect and retain ■ Paragraph 1. The authority citation use of the vehicle must also satisfy the
much of this information for other for part 41 continues to read in part as use-based test of section
business purposes such as accounting, follows: 6421(e)(2)(C)(iv).
insurance, and marketing. Also, truck Authority: 26 U.S.C. 7805 * * * (b) Highway vehicle—(1) In general.
manufacturers presently provide the Except as otherwise provided in
GVW and gross combined weight to § 41.4482(a)–1 [Amended] paragraph (b)(3) of this section, highway
truck dealers for purposes unrelated to ■ Par. 2. Section 41.4482(a)–1(a)(2) is vehicle means any self-propelled
federal excise tax. Therefore, a amended by removing the language vehicle, or any truck trailer or
Regulatory Flexibility Analysis under ‘‘§ 48.4061(a)–1(d)’’ and adding ‘‘§ 48.0– semitrailer, designed to perform a
the Regulatory Flexibility Act (5 U.S.C. 5’’ in its place. function of transporting a load over
chapter 6) is not required. Pursuant to public highways.
section 7805(f) of the Internal Revenue PART 48—MANUFACTURERS AND (2) Explanation. (i) A vehicle consists
Code, this notice of proposed RETAILERS EXCISE TAXES of a chassis, or a chassis and a body if
rulemaking has been submitted to the the vehicle has a body, but does not
■ Par. 3. The authority citation for part
Chief Counsel for Advocacy of the Small include the vehicle’s load.
48 is amended by adding entries in (ii) Except as otherwise provided in
Business Administration for comment numerical order to read in part as
on its impact on small business. paragraph (b)(3) of this section, in
follows: determining whether a vehicle is a
Comments and Requests for a Public Authority: 26 U.S.C. 7805 * * * highway vehicle, it is immaterial
Hearing Section 48.4051–1 also issued under 26 whether—
U.S.C. 4051(a). (A) The vehicle can perform functions
Before these proposed regulations are other than transporting a load over the
Section 48.4051–2 also issued under 26
adopted as final regulations, U.S.C. 4051(b). public highways;
consideration will be given to any (B) The vehicle is designed to perform
comments that are submitted timely to * * * * *
Section 48.4052–2 also issued under 26 a highway transportation function for
the IRS as prescribed in this preamble U.S.C. 4052(b). only a particular kind of load, such as
under the ADDRESSES heading. The passengers, furnishings and personal
Treasury Department and the IRS * * * * *
Section 48.4071–3 also issued under 26 effects (as in a house, office, or utility
request comments on all aspects of the U.S.C. 4071(b). trailer), a special type of cargo, goods,
proposed regulations. All comments supplies, or materials, or machinery or
will be available at www.regulations.gov * * * * *
equipment specially designed to
or upon request. A public hearing may § 48.0–1 [Amended] perform some off-highway task
be scheduled if requested in writing by ■ Par. 4. Section 48.0–1, fourth unrelated to highway transportation;
any person that timely submits written sentence, is amended by removing the and
comments. If a public hearing is language ‘‘highway-type tires’’ and (C) In the case of a vehicle specially
scheduled, notice of the date, time, and adding ‘‘taxable tires’’ in its place. designed to transport machinery or
place for the hearing will be published equipment, such machinery or
in the Federal Register. § 48.0–2 [Amended] equipment is permanently mounted on
■ Par. 5. In § 48.0–2, paragraph (b)(5), the vehicle.
Drafting Information
first sentence, is amended by removing (iii) Examples of vehicles that are
The principal author of these the language ‘‘In the case of a lease,’’ designed to perform a function of
regulations is Celia Gabrysh, Office of and adding ‘‘Except as provided in transporting a load over the public
Associate Chief Counsel (Passthroughs § 48.4052–1(e), in the case of a lease,’’ highways are passenger automobiles,
and Special Industries). However, other in its place. motorcycles, buses, motor homes, and
personnel from the IRS and the Treasury ■ Par. 6. Section 48.0–4 is added to highway-type trucks, truck tractors,
Department participated in their subpart A to read as follows: trailers, and semitrailers.
development. (iv) Examples of vehicles that are not
§ 48.0–4 Highway vehicle and mobile designed to perform a function of
List of Subjects machinery. transporting a load over the public
(a) Overview. (1) The definitions of highways are farm tractors, bulldozers,
26 CFR Part 41 highway vehicle and mobile machinery road graders, and forklifts.
Excise taxes, Motor vehicles, in this section apply for purposes of this (v) The term public highway includes
Reporting and recordkeeping part and part 41 of this chapter. See any road (whether a federal highway,
requirements. § 41.4482(a)–1(a)(2) of this chapter. state highway, city street, or otherwise)
(2) The taxes imposed by sections in the United States that is not a private
26 CFR Parts 48 and 145 4051 and 4481 do not apply to mobile roadway.
machinery (as defined in paragraph (vi) The term transport includes tow.
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Excise taxes, Reporting and (b)(3)(iii) of this section), and the tax (3) Exceptions—(i) Certain vehicles
recordkeeping requirements. imposed by section 4071 does not apply specially designed for off-highway
Proposed Amendments to the to tires of a type used exclusively on transportation—(A) In general. The term
Regulations such mobile machinery. In addition, for highway vehicle does not include a
purposes of determining whether use of vehicle if the vehicle is specially
Accordingly, 26 CFR parts 41, 48, and a vehicle qualifies as off-highway designed for the primary function of
145 are proposed to be amended as business use under section 6421(e)(2)(C) transporting a particular type of load
follows: (relating to uses in mobile machinery), other than over a public highway and
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![Federal Register / Vol. 81, No. 62 / Thursday, March 31, 2016 / Proposed Rules 18553
section, any tax paid by the prior seller Certificate installment sale (or another form of sale
on account of its sale (and not at any under which the sales price is paid in
(To support nontaxable sale of articles
time refunded to or credited against any installments), then the liability for the
listed in section 4051 for resale or long
other liability of the prior seller) is entire tax arises at the time of the lease
term lease under section 4052 of the
treated as a payment on behalf of the or installment sale. No portion of the tax
Internal Revenue Code)
person (the subsequent seller) liable for is deferred by reason of the fact that the
the tax on the sale described in The undersigned buyer of articles sales price is paid in installments.
paragraph (c)(1) of this section. The listed in section 4051 (‘‘Buyer’’) hereby (f) Effective/applicability date. This
certifies the following under penalties of section applies on and after the date of
subsequent seller may claim such
perjury: publication of these regulations in the
payment as a credit against its liability
1. lllllllllllllllllll Federal Register as final regulations.
for tax on the sale described in
lllllllllllllllllllll ■ Par. 11. Section 48.4061(a)–1 is
paragraph (c)(1) of this section if the lllllllllllllllllllll amended as follows:
following conditions are met: Seller’s name, address, and employer ■ 1. Paragraph (d)(2)(ii), first sentence,
(i) The claim is made on Form 720, identification number is amended by removing the language
‘‘Quarterly Federal Excise Tax Return’’ 2. lllllllllllllllllll ‘‘A self-propelled’’ and adding ‘‘Before
(or such other form as the IRS may lllllllllllllllllllll January 1, 2005, a self-propelled’’ in its
designate) in accordance with the lllllllllllllllllllll place.
Buyer’s name, address, and employer ■ 2. Paragraph (d)(2)(iv) is added.
instructions for that form. identification number The addition reads as follows:
(ii) The subsequent seller has not been 3. lllllllllllllllllll
repaid any portion of the tax by the Date and location of sale to Buyer § 48.4061(a)–1 Imposition of tax; exclusion
prior seller and has not provided the 4. The articles listed below will be either for light-duty trucks, etc.
prior seller with a written consent to the resold by Buyer or leased on a long term * * * * *
allowance of a credit or refund. basis by Buyer. If the article is a chassis, (d) * * *
Buyer has listed the chassis Vehicle (2) * * *
(iii) The subsequent seller has records Identification Number. If the article is a (iv) Off-highway transportation
substantiating the amount of tax paid by body, Buyer has listed the body’s vehicles after October 21, 2004. For a
the prior seller on its sale of the truck identification number.
description of certain vehicles that are
trailer or semitrailer. not treated as highway vehicles after
(d) Certificate—(1) In general. The October 21, 2004, see § 48.0–5(b)(3).
certificate referred to in paragraph * * * * *
(b)(1)(iii) of this section is a statement
that is signed under penalties of perjury Subpart H [Amended]
by a person with authority to bind the ■ Par. 12. Subpart H is amended by
buyer, is in substantially the same form revising the undesignated center
as the model certificate provided in 5. Buyer understands that it must be heading reading ‘‘Tires, Tubes, and
paragraph (d)(3) of this section, and prepared to establish, by evidence Tread Rubber’’ to read ‘‘Tires’’.
contains all information necessary to satisfactory to an examining agent, how ■ Par. 13. Section 48.4071–1 is revised
complete the model certificate. The IRS each article bought under this certificate to read as follows:
may withdraw the right of a buyer of was used.
vehicles to provide a certificate under 6. Buyer has not been notified by the Internal § 48.4071–1 Tires; imposition of tax.
Revenue Service that its right to provide a (a) In general. (1) Tax is imposed by
this section if the buyer uses the certificate has been withdrawn.
vehicles to which a certificate relates section 4071 on the sale by the
7. Buyer understands that if it uses or leases
other than as stated in the certificate. manufacturer of a taxable tire with a
(in a short term lease) an article listed in
The IRS may notify any seller that the this certificate, Buyer will be liable for the maximum rated load capacity greater
buyer’s right to provide a certificate has tax imposed by section 4051(a)(1) on the than 3,500 pounds.
article. See 26 CFR 48.4051–1 and (2) See § 48.4072–1(b) for the
been withdrawn. The certificate may be
145.4052–1(c). definition of the term taxable tire.
included as part of any business records 8. Buyer understands that Buyer may be (b) Tax base and computation of tax.
normally used to document a sale. liable for the section 6701 penalty (relating The tax base is equal to the number of
(2) Effect of use other than as stated to aiding and abetting an understatement of 10–pound increments, rounded down to
in certificate. If a buyer that provides a tax liability) if this is an erroneous the nearest ten pounds, by which the
certification.
certificate described in paragraph maximum rated load capacity exceeds
9. Buyer understands that the fraudulent use
(b)(1)(iii)(A) of this section uses or of this certificate may subject Buyer and all 3,500 pounds. The tax is determined by
leases (in a short term lease) an article parties making any fraudulent use of this multiplying this tax base by the rate of
listed in the certificate, the sale of such statement to a fine or imprisonment, or tax specified in section 4071(a). Thus,
article to the buyer is treated as the first both, together with the costs of for example, a taxable tire with a
retail sale of the article and the buyer is prosecution. maximum rated load capacity of 4,005
liable for the tax imposed on such sale. lllllllllllllllllllll pounds is treated as having a maximum
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If the conditions of paragraph Printed or typed name of person signing this rated load capacity of 4,000 pounds and
(b)(1)(iii)(A), (B), and (C) of this section
certificate a tax base of 50 ((4000 ¥ 3,500) ÷ 10).
lllllllllllllllllllll The tax imposed on the tire is the rate
are satisfied, the seller will not be liable Title of person signing of tax under section 4071(a) times 50.
for the tax imposed on such sale. lllllllllllllllllllll (c) Liability for tax. The manufacturer
(3) Model certificate. Signature and date signed
of a taxable tire is liable for the tax
(e) No installment payment of tax. If imposed by section 4071.
a lease is a taxable sale under (d) Effective/applicability date. This
§ 145.4052–1(b) of this chapter or an section applies on and after the date of
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![18554 Federal Register / Vol. 81, No. 62 / Thursday, March 31, 2016 / Proposed Rules
publication of these regulations in the manufactured, or from a regional mobile machinery (within the meaning
Federal Register as final regulations. distribution center of taxable tires, to a of § 48.0–5(c))) of the type used on—
■ Par. 14. Section 48.4071–2 is revised retail outlet or to a location in the (1) Highway vehicles; or
to read as follows: immediate vicinity of a retail outlet (2) Vehicles of the type used in
primarily for future delivery to the retail connection with highway vehicles.
§ 48.4071–2 Determination of maximum (d) Rated load capacity. The term
outlet.
rated load capacity. rated load capacity means the
(B) Arrival of the taxable tires at the
(a) In general. For purposes of the tax retail outlet, or, where shipment is to a maximum load a tire is rated to carry at
imposed by section 4071, the maximum location in the immediate vicinity of a a specified inflation pressure.
rated load capacity is the maximum retail outlet primarily for future delivery * * * * *
rated load rating inscribed on a taxable to the retail outlet, the arrival of the (f) Super single tire. The term super
tire’s sidewall provided the inscription taxable tires at such location. single tire means a single tire greater
meets the standards prescribed by the (ii) Delivery election. A manufacturer than 13 inches in cross section width
National Highway Traffic Safety that has elected to treat one of the designed to replace two tires in a dual
Administration in its regulations. If a events listed in paragraph (c)(1)(i)(A) or fitment. The term does not include any
taxable tire has multiple maximum load (B) of this section as constituting tire designed for steering or an all
ratings, the taxable tire’s highest delivery to a retail outlet may not use position tire.
maximum load rating is the taxable a different criterion for a later return (g) Examples. The following examples
tire’s maximum rated load capacity for period unless the manufacturer obtains illustrate the application of this section.
purposes of the tax. permission from the IRS in advance. Example 1. (1) Facts. (i) A foreign tire
(b) Tampering. In the event of any manufacturer manufactures a tire that meets
* * * * *
tampering with, or the appearance of the Federal Motor Vehicle Safety Standard
(e) Effective/applicability date. This
tampering with, the inscription of a for truck tires prescribed by the DOT. The
section applies on and after the date of
taxable tire’s maximum rated load tire is not of a type used exclusively on
publication of these regulations in the
capacity as described in paragraph (a) of mobile machinery (within the meaning of
Federal Register as final regulations. § 48.0–5(c)). This tire is partially made of
this section, the tire’s maximum rated
load capacity is the maximum rated § 48.4071–4 [Removed] rubber. The foreign manufacturer marks this
tire for highway use pursuant to DOT
load capacity of a comparable tire. ■ Par. 16. Section 48.4071–4 is regulations. The foreign manufacturer sells
(c) Effective/applicability date. This removed. the tire for use in the foreign country.
section applies on and after the date of ■ Par. 17. Section 48.4072–1 is (ii) After use in the foreign country, a tire
publication of these regulations in the amended by: importer buys the tire and imports it into the
Federal Register as final regulations. ■ 1. Revising paragraphs (b), (c), and (d). United States. At the time of importation, the
■ Par. 15. Section 48.4071–3 is ■ 2. Amending paragraph (e) by tread on this tire’s casing meets the criteria
amended by: removing the second, third, and fourth for minimal tread on trucks used in interstate
■ 1. Revising the section heading and commerce as prescribed by the DOT.
sentences.
paragraph (a). (2) Analysis. The imported tire is a taxable
■ 3. Revising paragraphs (f), (g), and (h).
■ 2. Revising paragraph (c)(1).
tire because the tire is of the type used on
■ 4. Removing the undesignated a highway vehicle and is not of a type used
■ 3. Adding paragraph (e). authority citation at the end of the exclusively on mobile machinery, the tire is
■ 4. Removing the undesignated section. wholly or in part made of rubber, and the tire
authority citation at the end of the The revisions and addition read as is marked pursuant to federal regulations for
section. follows: highway use.
The revisions and addition read as Example 2. (1) Facts. A tire manufacturer
follows: § 48.4072–1 Definitions. pays the tax imposed by section 4071(a)
* * * * * when it sells a tire that is (1) of the type used
§ 48.4071–3 Imposition of tax on tires on highway vehicles; (2) wholly or in part
(b) Taxable tire—(1) In general. The
delivered to manufacturer’s retail outlet. made of rubber; and (3) marked pursuant to
term taxable tire means a tire—
(a) General rule. If a tire manufacturer (i) Of the type used on highway federal regulations for highway use. The tire
delivers a taxable tire it manufactured to does not have any design features to indicate
vehicles; that it is a tire of a type used exclusively on
one of its retail outlets, the (ii) That is wholly or in part made of
manufacturer is liable for the tax mobile machinery (within the meaning of
rubber; and § 48.0–5(b)(3)(iii)). The purchaser of this tire
imposed by section 4071 on this tire in (iii) That is marked pursuant to puts the tire on mobile machinery described
the same manner as if the tire had been federal regulations for for highway use. in § 48.0–5(b)(3)(iii).
sold upon delivery to the retail outlet. (2) Recapped and retreaded tires. The (2) Analysis. A tire that is ‘‘of the type used
The amount of tax is computed under term taxable tire includes a used tire on highway vehicles’’ and ‘‘not of a type used
§ 48.4071–1. that is recapped or retreaded (whether exclusively on mobile machinery’’ retains
* * * * * from shoulder-to-shoulder or bead-to- those characteristics regardless of how the
(c) * * * bead) only if— tire is actually used. Therefore, the
(1) Delivery—(i) Delivery options. A characterization of a tire as a taxable tire is
(i) The used tire had not previously not changed because the tire is actually used
manufacturer of taxable tires may, at its been sold in the United States; on a vehicle that is mobile machinery.
option, treat either of the following (ii) The used tire is recapped or (h) Effective/applicability date. This
events as constituting delivery to a retail retreaded outside the United States; and
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section applies on and after the date of
outlet: (iii) When imported into the United publication of these regulations in the
(A) Delivery of taxable tires to a States, the recapped or retreaded tire Federal Register as final regulations.
common carrier (or, where the taxable meets the requirements of section (b)(1)
tires are transported by the of this section. § 48.4073 [Removed]
manufacturer, the placing of the taxable (c) Tires of the type used on highway ■ Par. 18. Reserved § 48.4073 is
tires into the manufacturer’s highway vehicles. The term tires of the type used removed.
vehicle) for shipment from the plant in on highway vehicles means tires (other ■ Par. 19. Section 48.4073–1 is revised
which the taxable tires are than tires of a type used exclusively on to read as follows:
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§ 48.4073–1 Exemption for tires sold for 1. lllllllllllllllllll §§ 48.4073–3 and 48.4073–4 [Removed]
the exclusive use of the Department of lllllllllllllllllllll ■ Par. 21. Sections 48.4073–3 and
Defense or the Coast Guard. lllllllllllllllllllll 48.4073–4 are removed.
(a) In general. Tax is not imposed by Manufacturer’s name, address, and employer
section 4071 on the sale of a taxable tire identification number § 48.4081–1 [Amended]
if— 2. lllllllllllllllllll ■ Par. 22. Section 48.4081–1(b) is
(1) The manufacturer of the taxable lllllllllllllllllllll amended by removing the language
lllllllllllllllllllll
tire meets the registration requirements ‘‘§ 48.4061(a)–1(d)’’ in the definition of
Buyer’s name, address, and employer
of section 4222; and identification number Diesel-powered highway vehicle and
(2) The sale of the taxable tire is to the adding ‘‘§ 48.0–5’’ in its place.
3. lllllllllllllllllll
Department of Defense or the Coast ■ Par. 23. Section 48.4221–7 is
Date and location of sale to Buyer
Guard for the exclusive use of the amended by:
4. The tire(s) to which this certificate applies
Department of Defense or the Coast ■ 1. Revising the section heading and
will be for the exclusive use of Buyer (that
Guard, is, the Department of Defense or the Coast paragraph (a).
(b) Sales for resale. A manufacturer Guard). ■ 2. Removing paragraph (b) and
may sell a taxable tire tax-free under 5. This certificate applies to Buyer’s redesignating paragraph (c) as paragraph
section 4073 and this section only if the purchases from Manufacturer as follows (b).
sale is directly made to either the (complete as applicable): ■ 3. Revising redesignated paragraph
Department of Defense or the Coast a. A single purchase on invoice or delivery (b)(2).
Guard for such agency’s exclusive use. ticket number ll. ■ 4. Adding new paragraph (c).
b. All purchases between ll (effective The revisions and addition read as
Accordingly, a sale may not be made
date) and ll (expiration date), a period follows:
taxfree to a dealer for resale to the not exceeding 12 calendar quarters after
Department of Defense or the Coast the effective date, under account or order § 48.4221–7 Tax-free sale of tires for use
Guard for its exclusive use, even though number(s) ll. If this certificate applies on other articles.
it is known at the time of sale by the only to Buyer’s purchases for certain
locations, check here ll and list the
(a) In general. Under section
manufacturer that the article will be so
locations. 4221(e)(2), tax is not imposed by section
resold.
lllllllllllllllllllll
4071 on the sale of a taxable tire if—
(c) Certificate—(1) Effect of certificate.
lllllllllllllllllllll (1) The taxable tire is sold for use by
A manufacturer will not be liable for tax
lllllllllllllllllllll the purchaser for sale on or in
on the sale of a taxable tire if, at the time
6. Buyer will provide a new certificate to the connection with the sale of another
of the sale, the manufacturer has
Manufacturer if any information in this article manufactured or produced by the
obtained from the buyer an unexpired
certificate changes. purchaser;
certificate described in paragraph (c)(2)
7. Buyer understands that Buyer may be (2) The other article is to be sold by
of this section and has no reason to
liable for the section 6701 penalty (relating the purchaser—
believe any information in the to aiding and abetting an understatement of (i) In a tax-free sale for export, for use
certificate is false. A buyer that provides tax liability) if this is an erroneous as supplies for vessels or aircraft, to a
an erroneous certificate described in certification. state or local government for its
paragraph (c)(2) of this section is liable 8. Buyer understands that the fraudulent use exclusive use, or to a nonprofit
for any tax imposed on the sale to which of this certificate may subject Buyer and all
parties making any fraudulent use of this
educational organization for its
the certificate relates.
statement to a fine or imprisonment, or exclusive use; or
(2) Form of certificate. The certificate
both, together with the costs of (ii) For any of such purposes in a sale
described in this paragraph (c)(2) is a
prosecution. that would be tax-free but for the fact
statement by the Department of Defense
lllllllllllllllllllll that the other article is not subject to tax
or the Coast Guard that is signed under
Printed or typed name of person signing this under section 4051 or 4064;
penalties of perjury by a person with (3) The registration requirements of
certificate
authority to bind the Department of section 4222 and the regulations
lllllllllllllllllllll
Defense or the Coast Guard, is in thereunder are met; and
Title of person signing
substantially the same form as the (4) The proof, described in paragraph
lllllllllllllllllllll
model certificate provided in paragraph (b) of this section, of the disposition of
Signature and date signed
(c)(3) of this section, and contains all the other article, is timely received by
information necessary to complete the (d) Effective/applicability date. This the manufacturer.
model certificate. A new certificate or section applies on and after the date of (b) * * *
notice that the current certificate is publication of these regulations in the (2) Required information—(i) In
invalid must be given if any information Federal Register as final regulations. general. The information referred to in
in the current certificate changes. The ■ Par. 20. Section 48.4073–2 is revised paragraph (b)(1) of this section is a
certificate may be included as part of to read as follows: statement that is signed under penalties
any business records normally used to of perjury by a person with authority to
document a sale. § 48.4073–2 American National Red Cross.
bind the purchaser, is in substantially
(3) Model Certificate. (a) For the exemption allowed to the the same form as the model certificate
American National Red Cross from the provided in paragraph (b)(2)(ii) of this
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Certificate
tax imposed by section 4071, see the section, and contains all information
(To support the tax-free sales of tires to Secretary’s Authorization, 1979–1 C.B. necessary to complete the model
the Department of Defense or the Coast 478 (See § 601.601(d)(2)(ii)(b) of this certificate. For purchasers that are not
Guard under section 4073 of the Internal chapter.) required to be registered under section
Revenue Code) (b) Effective/applicability date. This 4222, the IRS may withdraw the right of
The undersigned buyer of taxable tires section applies on and after the date of a purchaser of a taxable tire to provide
(‘‘Buyer’’) hereby certifies the following publication of these regulations in the a certificate under this section if the
under penalties of perjury: Federal Register as final regulations. purchaser uses the tire to which a
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![Federal Register / Vol. 81, No. 62 / Thursday, March 31, 2016 / Proposed Rules 18557
satisfactory to an examining agent, how parties making any fraudulent use of this publication of these regulations in the
each tire bought under this certificate was statement to a fine or imprisonment, or Federal Register as final regulations.
used. both, together with the costs of
6. Check here ___ if Buyer is not required to prosecution. § 48.6416(c)–1 [Removed]
be registered with the Internal Revenue lllllllllllllllllllll
Service because Purchaser is a state or Printed or typed name of person signing this ■ Par. 25. Section 48.6416(c)–1 is
local government or the United States. certificate removed.
7. Buyer understands that Buyer may be lllllllllllllllllllll ■ Par. 26. For each section listed in the
liable for the section 6701 penalty (relating Title of person signing tables, remove the language in the
to aiding and abetting an understatement of
lllllllllllllllllllll ‘‘Remove’’ column from wherever it
tax liability) if this is an erroneous
Signature and date signed appears in the paragraph and add in its
certification.
8. Buyer understands that the fraudulent use (d) Effective/applicability date. This place the language in the ‘‘Add’’ column
of this certificate may subject Buyer and all section applies on and after the date of as set forth below:
Section Remove Add
§ 48.4071–3(b) Second sentence ...................... tires or tubes .................................................... taxable tires.
Fourth sentence ................................................. tires or inner tubes ........................................... taxable tires.
Fifth sentence .................................................... tires ................................................................... taxable tires.
Sixth sentence ................................................... taxable tires. and inner tubes .......................... taxable tires.
§ 48.4071–3(c)(1) Introductory text .................... tires or inner tubes ........................................... taxable tires.
§ 48.4071–3(c)(1)(i) ............................................ tires or inner tubes ........................................... taxable tires.
tires or tubes .................................................... taxable tires.
tires and inner tubes ........................................ taxable tires.
§ 48.4071–3(c)(2)(i) Second sentence ............... tires and inner tubes ........................................ taxable tires.
Third sentence ................................................... tires or inner tubes ........................................... taxable tires.
Fourth sentence ................................................. Tires and inner tubes ....................................... Taxable tires.
tires and tubes ................................................. taxable tires.
Seventh sentence .............................................. tires and inner tubes ........................................ taxable tires.
tires and tubes ................................................. taxable tires
tires or tubes
Eighth sentence ................................................. tires and inner tubes ........................................ taxable tires.
tire or inner tube
§ 48.4071–3(c)(2)(ii) First sentence (Example) tires and tubes ................................................. taxable tires.
Third sentence (Example) .................................. tires and inner tubes ........................................ taxable tires.
Fourth sentence (Example) ............................... tires or inner tubes ........................................... taxable tires.
tires and tubes
§ 48.4071–3(c)(3)(i) ............................................ tire or inner tube ............................................... taxable tire.
§ 48.4071–3(c)(3)(ii) ........................................... tire or inner tube ............................................... taxable tire.
§ 48.4071–3(d)(1) First sentence ....................... tires and inner tubes ........................................ taxable tires.
Second sentence ............................................... tires or inner tubes ........................................... taxable tires.
§ 48.4071–3(d)(2) ............................................... tires and inner tubes ........................................ taxable tires.
§ 48.4071–3(d)(3)(i) First sentence .................... tire or inner tube ............................................... taxable tire.
Second sentence ............................................... tire or inner tube ............................................... taxable tire.
§ 48.4071–3(d)(3)(ii) Third sentence (Example) tires and tubes (each of the two times it ap- taxable tires.
pears).
Fourth sentence (Example) ............................... tires or inner tubes ........................................... taxable tires.
§ 48.4081–1(b) ................................................... 48.4061(a)–1(d) ................................................ 48.0–5 of this chapter
Redesignated § 48.4221–7(b)(1) ....................... tire or inner tube ............................................... taxable tire.
Second sentence ............................................... tire or inner tube ............................................... taxable tire.
Third sentence ................................................... tire or inner tube ............................................... taxable tire.
§ 48.6421–4(c) ................................................... 48.4061(a)–1(d) ................................................ 48.0–5
PART 145—TEMPORARY EXCISE TAX related rules on the tax base, liability for § 145.4052–1 Special rules and definitions.
REGULATIONS UNDER THE HIGHWAY tax, explanation of terms, and (a) First retail sale. For the definition
REVENUE ACT OF 1982 (PUB. L. 97– exclusions, see § 48.4051–1 through of first retail sale, see § 48.4052–1 of this
424) § 48.4052–2 of this chapter. chapter.
■ Par. 27. The authority citation for part (b) This section applies on and after * * * * *
145 is amended by adding the following the date on which these regulations are (d) * * * (1) * * *. Total
entry in numerical order to read in part published as final regulations in the consideration paid for a chassis or body
as follows: Federal Register. includes charges for equipment
installed on the chassis or body. See
Authority: 26 U.S.C. 7805.* * * ■ Par. 29. Section 145.4052–1 is
§ 48.4051–1(d)(4). * * *
amended by:
mstockstill on DSK4VPTVN1PROD with PROPOSALS
Section 145.4052–1 also issued under 26 * * * * *
U.S.C. 4052. ■ 1. Revising paragraph (a).
(g) Effective/applicability date. This
■ Par. 28. Section 145.4051–1 is revised ■ 2. Adding two sentences after the first section applies on and after the date of
to read as follows: sentence in paragraph (d)(1). publication of these regulations in the
■ 3. Removing the last sentence in Federal Register as final regulations.
§ 145.4051–1 Imposition of tax on heavy
trucks, tractors, and trailers sold at retail.
paragraph (d)(8)(iii). § 145.4061–1 [Removed]
■ 4. Revising paragraph (g).
(a) For rules relating to the imposition ■ Par. 30. Section 145.4061–1 is
of the tax imposed by section 4051 and The revisions read as follows: removed.
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![18558 Federal Register / Vol. 81, No. 62 / Thursday, March 31, 2016 / Proposed Rules
■ Par. 31. For each section listed in the the language in the ‘‘Add’’ column as set
tables, remove the language in the forth below:
‘‘Remove’’ column and add in its place
§ 145.4052–1(b)(1) First sentence ..................... § 145.4051–1 .................................................... § 48.4051–1 of this chapter.
Second sentence ............................................... paragraph (a)(2) of this section ....................... § 48.4052–1(b) of this chapter.
§ 145.4052–1(b)(2) ............................................. § 145.4051–1 .................................................... § 48.4051–1 of this chapter.
paragraph (a)(2) of this section ....................... § 48.4052–1(b) of this chapter.
§ 145.4052–1(c)(1) ............................................. § 145.4051–1 .................................................... § 48.4051–1 of this chapter.
§ 145.4052–1(c)(5)(ii) ......................................... 4216(a), 4216(f) ............................................... 4052(b)(1)(A) and (B), 4216(a).
§ 145.4052–1(d)(1) Fourth sentence ................. Installation ........................................................ installation.
John Dalrymple, fish and fish products within the Inspection, NOAA Fisheries, 1315 East-
Deputy Commissioner for Services and government-wide International Trade West Highway, Silver Spring, MD
Enforcement. Data System (ITDS) and require 20910.
[FR Doc. 2016–06881 Filed 3–30–16; 8:45 am] electronic information collection All comments received are a part of
BILLING CODE 4830–01–P through the Automated Commercial the public record and will generally be
Environment (ACE) maintained by the posted to http://www.regulations.gov
Department of Homeland Security, without change. All personal identifying
DEPARTMENT OF COMMERCE Customs and Border Protection (CBP). information (for example, name and
Under these procedures, NMFS would address) voluntarily submitted by the
National Oceanic and Atmospheric require an annually renewable commenter may be publicly accessible.
Administration International Fisheries Trade Permit Do not submit confidential business
(IFTP) and specific data for certain fish information or otherwise sensitive or
50 CFR Parts 300 and 600 and fish products to be filed and protected information.
retained as a condition of import to
[Docket No. 150507434–5999–01] enable the United States to exclude the NMFS will accept anonymous
RIN 0648–BF09 entry into commerce of products of comments. Enter N/A in the required
illegal fishing activities. The fields if you wish to remain anonymous.
Magnuson-Stevens Fishery information to be collected and retained Attachments to electronic comments
Conservation and Management Act; will help authorities verify that the fish will be accepted in Microsoft Word,
Seafood Import Monitoring Program or fish products were lawfully acquired Excel, WordPerfect, or Adobe portable
by providing information that traces document file (PDF) formats only.
AGENCY: National Marine Fisheries each import shipment from point of Written comments regarding the
Service (NMFS), National Oceanic and harvest to entry-into commerce. The burden-hour estimates or other aspects
Atmospheric Administration (NOAA), rule will also decrease the incidence of
Commerce. of the collection-of-information
seafood fraud by collecting information requirements contained in this proposed
ACTION: Proposed rule; extension of the at import and requiring retention of rule may be submitted to the NOAA
comment period. documentation so that the information Fisheries Office for International Affairs
reported (e.g., regarding species and and Seafood Inspection and by email to
SUMMARY: The National Marine
harvest location) can be verified. This OIRA Submission@omb.eop.gov or fax
Fisheries Service (NMFS) is announcing
proposed rule stipulates the catch and to (202) 395–7285.
an extension to the comment period for
landing data for imports of certain fish
the proposed rule on a seafood import FOR FURTHER INFORMATION CONTACT:
and fish products which would be
monitoring program published in the Mark Wildman, Office for International
required to be submitted electronically
Federal Register on February 5, 2016. Affairs and Seafood Inspection, NOAA
to NMFS through ACE and the
The comment period is being extended Fisheries (phone 301–427–8350, or
requirements for recordkeeping
from April 5, 2016 to April 12, 2016. email mark.wildman@noaa.gov).
concerning such imports.
Pursuant to the Magnuson-Stevens
Fishery Conservation and Management DATES: Written comments on the SUPPLEMENTARY INFORMATION:
Act (MSA), this proposed rule would proposed rule published February 5,
2016 (81 FR 6210) must be received on Extension of Comment Period
establish filing and recordkeeping
procedures relating to the importation of or before April 12, 2016. This document extends the public
certain fish and fish products, in order ADDRESSES: Written comments on this comment period established in the
to implement the MSA’s prohibition on action, identified by NOAA–NMFS– Federal Register for 7 days. There are a
the import and trade, in interstate or 2015–0122, may be submitted by either number of international stakeholders
foreign commerce, of fish taken, of the following methods: who are potential commenters who
possessed, transported or sold in • Electronic Submissions: Submit all need some additional time to comment.
violation of any foreign law or electronic public comments via the NMFS is hereby extending the comment
regulation. The information to be filed Federal eRulemaking Portal. Go to period, which was set to end on April
mstockstill on DSK4VPTVN1PROD with PROPOSALS
is proposed to be collected at the time http://www.regulations.gov/#!docket 5, 2016, to April 12, 2016.
of entry, and makes use of an electronic Detail;D=NOAA-NMFS-2015-0122, click
Dated: March 25, 2016.
single window consistent with the the ‘‘Comment Now!’’ icon, complete
Safety and Accountability for Every the required fields, and enter or attach Eileen Sobeck,
(SAFE) Port Act of 2006 and other your comments. Assistant Administrator for Fisheries,
applicable statutes. Specifically, NMFS • Mail: Mark Wildman, International National Marine Fisheries Service.
proposes to integrate collection of catch Fisheries Division, Office for [FR Doc. 2016–07258 Filed 3–30–16; 8:45 am]
and landing documentation for certain International Affairs and Seafood BILLING CODE 3510–22–P
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Document Created: 2016-03-31 00:55:06
Document Modified: 2016-03-31 00:55:06
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Proposed Rules | |
| Action | Notice of proposed rulemaking. | |
| Dates | Written and electronic comments and requests for a public hearing must be received by June 29, 2016. | |
| Contact | Concerning the proposed regulations, Celia Gabrysh, at (202) 317-6855; concerning submissions of comments or a request for a hearing Regina Johnson at (202) 317-6901 (not toll-free numbers). | |
| FR Citation | 81 FR 18544 | |
| RIN Number | 1545-BE31 | |
| CFR Citation | 26
CFR
145 26 CFR 41 26 CFR 48 | |
| CFR Associated | Excise Taxes; Motor Vehicles and Reporting and Recordkeeping Requirements |
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