rp-05-19.pdf

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Part III

Administrative, Procedural, and Miscellaneous

26 CFR 145.4051-1: Imposition of tax on heavy trucks and trailers sold at retail.
(Also Part I, § 4051.)

Rev. Proc. 2005-19

SECTION 1. PURPOSE
To minimize disputes regarding the determination of whether a truck body
satisfies the weight-based exclusion provided in § 4051(a)(2) of the Internal
Revenue Code, the Service, as a matter of administrative convenience, has
established certain body type classification safe harbors.
SECTION 2. BACKGROUND
.01 In General
. Section 4051(a)(1) imposes a tax on the first retail sale of
certain enumerated articles including automobile truck chassis and bodies and
truck trailer and semitrailer chassis and bodies. Section 4051(a)(2) provides an

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exclusion from the tax imposed by § 4051(a)(1) for truck chassis and bodies
suitable for use with a vehicle that has a gross vehicle weight (GVW) of 33,000
pounds or less. Similarly, § 4051(a)(3) provides an exclusion for truck trailer and
semitrailer chassis and bodies suitable for use with a trailer or semitrailer that
has a GVW of 26,000 pounds or less.
Section 145.4051-1(a)(4) of the Temporary Excise Tax Regulations Under
the Highway Revenue Act of 1982 (Pub. L. 97-424) provides the following rules
for determining whether automobile truck chassis and bodies are suitable for use
with a vehicle which has a gross vehicle weight of 33,000 pounds or less and
whether truck trailer or semitrailer chassis and bodies are suitable for use with a
trailer or semitrailer which has a gross vehicle weight of 26,000 pounds or less.
The term "suitable for use" is defined as practical and commercial fitness for
such use. In addition, 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. Thus, a truck chassis which is suitable for use with a vehicle
having a gross vehicle weight of 33,000 pounds or less, is not subject to the tax
imposed by § 4051(a)(1) regardless of the body actually mounted thereon. If an
exempt body is mounted on a taxable chassis (or a taxable body is mounted on
an exempt chassis) and the resulting vehicle is a highway vehicle as defined in §
48.4061(a)-1 of the Manufacturers and Retailers Excise Tax Regulations, the

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taxable chassis or body, as the case may be, nevertheless remains subject to
such tax.
Under §145.4051-1(e)(3)(ii), a seller of a completed chassis, body, or
vehicle must establish a weight rating for each article sold. Since the weight
rating of the chassis and the GVW of a completed vehicle would normally be the
same, a truck chassis seller is aided in establishing a weight rating for a chassis
by the guidelines set forth in §145.4051-1(e)(3)(v). Section 145.4051-1(e)(3)(v)
generally defines GVW as the maximum total weight of a loaded vehicle.
.02 Reason for Revenue Procedure
. Section 145.4051-1(e)(3)(v)
simplifies sellers’ determinations of whether chassis meet the “suitable for use”
standard for a weight-based exclusion. However, since there are no federal
excise tax guidelines to establish a weight rating for a truck body, and because
many truck bodies are specialized in nature, sellers do not routinely ascribe GVW
ratings to the bodies they sell. In some cases, sellers do not know the GVW of
the vehicle on which the body (or similar bodies sold by others) will be mounted.
Thus, it may be difficult for a seller of a truck body to determine whether the body
meets the “suitable for use” standard for a weight-based exclusion.
SECTION 3. APPLICATION
.01 Classifications of Truck Body Types
. The Service will not challenge a
seller’s determination that any of the following classifications of truck body types
meet the “suitable for use” standard and sales thereof are excluded from the
retail excise tax by virtue of § 4051(a)(2):
(1) Platform truck bodies 21 feet or less in length;

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(2) Dry freight and refrigerated truck van bodies 24 feet or less
in length;
(3) Dump truck bodies with load capacities of 8 cubic yards or
less; or
(4) Refuse packer truck bodies with load capacities of 20 cubic
yards or less.
.02 Bodies Not Within a Classification
. The Service has established the
classifications set forth in section 3.01 after a review of manufacturers’ and
retailers’ data for certain truck body types. A body type described above that
does not fall within the classification parameters of its body type (for example, a
platform truck body longer than 21 feet), or a body type not described above,
may nevertheless still satisfy the “suitable for use” standard if the seller can
establish that, pursuant to § 145.4051-1(a)(4), the truck body has practical and
commercial fitness for use with a vehicle having a GVW of 33,000 pounds or
less.
SECTION 4. EFFECTIVE DATE

This revenue procedure is effective for sales on or after April 4, 2005. In
the case of sales before April 4, 2005, the Service will not challenge sellers who
take positions consistent with this revenue procedure with respect to sales of
truck bodies described in section 3.01.
DRAFTING INFORMATION
The principal author of this revenue procedure is Theodore N. Margopulos
of the Office of Associate Chief Counsel (Passthroughs & Special Industries).

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For further information regarding this revenue procedure, contact Barbara
Franklin on (202) 622-3130 (not a toll-free call).