[Code of Federal Regulations]
[Title 26, Volume 17]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR145.4051-1]

[Page 447-450]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 145_TEMPORARY EXCISE TAX REGULATIONS UNDER THE HIGHWAY REVENUE ACT 
OF 1982 (PUB. L. 97-424)--Table of Contents
 
Sec. 145.4051-1  Imposition of tax on heavy trucks and trailers sold at retail.




Sec.
145.4051-1 Imposition of tax on heavy trucks and trailers sold at 
          retail.
145.4052-1 Special rules and definitions.
145.4061-1 Application to manufacturers tax.

    Authority: 26 U.S.C. 7805.
    Sections 145.4051-1 and 145.4052-1 also issued under 26 U.S.C. 4051 
and 4052.

    Source: T.D. 7882, 48 FR 14362, Apr. 4, 1983, unless otherwise 
noted.


    (a) Imposition of tax--(1) In general. Section 4051(a)(1) imposes a 
tax on the first retail sale (as defined in Sec. 145.4052-1(a)) of the 
following articles (including in each case parts or accessories therefor 
sold on or in connection therewith or with the sale thereof):
    (i) Automobile truck chassis and bodies;
    (ii) Truck trailer and semitrailer chassis and bodies; and
    (iii) Tractors of the kind chiefly used for highway transportation 
in combination with a trailer or semitrailer.

A sale of an automobile truck, truck trailer or semitrailer, shall be 
considered to be a sale of a chassis and of a body enumerated in this 
paragraph (a)(1).
    (2) Special rule applicable to chassis and bodies. A chassis or body 
enumerated in paragraph (a)(1) of this section is taxable under section 
4051(a)(1) only if such chassis or body is sold for use as a component 
part of a highway vehicle (as defined in paragraph (d) of Sec. 
48.4061(a)-1 (Regulations on Manufacturers and Retailers Excise Taxes)), 
which 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. Furthermore, a chassis or body which is not 
enumerated in paragraph (a)(1) of this section is not taxable under 
section 4051(a)(1) even though such chassis or body is used as a 
component part of a highway vehicle (e.g., a chassis or body of a 
passenger automobile). See paragraphs (e)(1) and (e)(2) of this section 
for the definitions of a tractor and truck. See paragraphs (e) (1) 
through (5) of Sec. 145.4052-1 for other provisions applicable to this 
section. See paragraph (f) of this section, relating to tax-free sales 
of non-highway vehicles.
    (3) Parts or accessories sold on or in connection with chassis, 
bodies, etc. The tax applies in respect of parts or accessories sold on 
or in connection with or with the sale of the vehicles specified in 
section 4051(a)(1). Thus, for example, if at the time the article is 
sold by the retailer, the part or accessory has been ordered from the 
retailer, the part or accessory will be considered as sold in connection 
with and with the sale of the vehicle. The tax applies in such a case 
whether or not the parts or accessories are billed separately by the 
retailer. If a taxable chassis, body, or tractor is sold by the 
retailer, without parts or accessories which are considered equipment 
essential for the operation or appearance of the taxable article, the 
sale of such parts or accessories by the retailer to the purchaser 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, at the same 
time or on a different date. For example, if a retailer sells to any 
person a chassis and the bumpers for such chassis, or sells a taxable 
tractor and the fifth wheel and attachments, the tax applies to such 
parts or accessories regardless of the method of billing or the time at 
which the shipments were made. Parts and accessories that are spares or 
replacements are not subject to tax.
    (4) Exclusions. No tax is imposed by section 4051(a)(1) on the sale 
of automobile truck chassis and bodies, suitable for use with a vehicle 
which has a gross vehicle weight of 33,000 pounds or less, or truck 
trailer and semitrailer chassis and bodies, suitable for use with a 
trailer or semitrailer which has a gross vehicle weight of 26,000 pounds 
or less. For purposes of this paragraph (a)(4) the term suitable for use 
means practical and commercial fitness for such use. A chassis or body 
possesses practical fitness for use with a vehicle if it performs its 
intended function up

[[Page 448]]

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 section 4051(a)(1) regardless of the body actually 
mounted thereon. A truck trailer or semitrailer chassis suitable for use 
with a vehicle having a gross vehicle weight of 26,000 pounds or less, 
is not subject to tax regardless of the body actually mounted thereon. 
Where an exempt body is mounted on a taxable chassis, or a taxable body 
is mounted on an exempt chassis, the taxable chassis or body, as the 
case may be, nevertheless remains subject to such tax, if the resulting 
vehicle is a highway vehicle as defined in Sec. 48.4061(a)-1.
    (b) Rate of tax. With respect to the articles enumerated in 
paragraph (a)(1) of this section, the rate of tax imposed by section 
4051(a)(1) is 12 percent of the price for which the article is sold on 
or after April 1, 1983. See paragraph (d) of this section relating to 
vehicles on which a 10 percent tax was imposed under section 4061(a)(1).
    (c) Separate purchase of truck or trailer and parts and accessories 
therefor--(1) In general. If the owner, lessee, or operator of any 
vehicle, which contains an article taxable under paragraph (a)(1) of 
this section, installs (or causes to be installed) any part or accessory 
on such vehicle, and such installation is not later than 6 months after 
the date such vehicle (as it contains such article) was first placed in 
service, section 4051(b)(1) imposes a tax on such installation equal to 
12 percent of the price of such part or accessory and its installation. 
For purposes of the tax imposed by section 4051(b)(1) and this paragraph 
(c)(1) the term ``parts and accessories'' does not include those parts 
and accessories which were previously exempt from tax under sections 
4061(b) (1) and (2) as in effect prior to January 7, 1983. Thus, for 
example, articles of general use are exempt from tax. See Sec. 
48.4061(b)-2 (b). See paragraphs (d) (1) through (4) of Sec. 145.4052-1 
for determination of price.
    (2) Placed in service. For purposes of paragraph (c)(1) of this 
section, a vehicle shall be considered 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.
    (3) Exceptions. The tax imposed by section 4051(b)(1) and paragraph 
(c)(1) of this section shall not apply if:
    (i) The part or accessory intalled is a replacement part or 
accessory, or
    (ii) The aggregate price of the parts and accessories (and their 
installation) described in paragraph (c)(1) of this section with respect 
to any vehicle does not exceed $200.

For purposes of paragraph (c)(3)(i) of this section, a part is a 
replacement part, regardless of when it is ordered, if its use with a 
vehicle is as a replacement for a part on such vehicle. For purposes of 
paragraph (c)(3)(ii) of this section, the term aggregate price of parts 
and accessories (and their installation) refers to all purchases and 
installation charges, not including replacement parts and accessories, 
made with respect to a vehicle within the 6 month period provided for in 
paragraph (c)(1) of this section. If the aggregate price of parts and 
accessories (and their installation) during the 6 month period exceeds 
$200, the tax imposed under section 4051(b)(1) and paragraph (c)(1) of 
this section shall apply to the cost of all parts and accessories (and 
their installation) during such period. For example, a vehicle is 
purchased and placed in service on July 1, 1983. On August 1, 1983, the 
owner purchases and has installed parts and accessories at a cost of 
$150. On September 1, 1983, the owner purchases and has installed parts 
and accessories at a cost of $300. On September 1, 1983 a tax of $54 
will be imposed (12 percent x $450). Any costs of additional parts and 
accessories installed with respect to the vehicle before January 1, 1984 
(and the cost of installation) will also be subject to the 12 percent 
tax.
    (d) Transitional rule. In the case of an article taxable under 
paragraph (a)(1)

[[Page 449]]

of this section, on which a tax was imposed under section 4061(a)(1), 
the rate of tax set forth in paragraph (b) shall be applied by 
substituting ``2 percent'' for ``12 percent.'' For example, if a 
manufacturer sells a tractor to a dealer on February 1, 1983, for 
$20,000 (which includes the Federal excise tax), for which a 10 percent 
tax was paid, and the dealer sells the tractor on April 10, 1983 for 
$25,000, a tax of 2 percent will be imposed on the $25,000 sales price. 
See paragraphs (d) (1) through (4) of Sec. 145.4052-1 relating to 
determination of price.
    (e) Definitions. For purposes of this section:
    (1) Tractor. (i) The term ``tractor'' means a highway vehicle 
primarily designed to tow a vehicle, such as a trailer or semitrailer, 
but does not carry cargo on the same chassis as the engine. A vehicle 
equipped with air brakes and/or towing package will be presumed to be 
primarily designed as a tractor.
    (ii) An incomplete chassis cab shall be treated as a tractor if it 
is equipped with one or more of the following:
    (A) A device for supplying pressure from the chassis cab to the 
brake system (air or hydraulic) of the towed vehicle;
    (B) A mechanism for protecting the chassis cab brake system from the 
effects of a loss of pressure in the brake system of the towed vehicle;
    (C) A control linking the brake system of the chassis to the brake 
system of the towed vehicle;
    (D) A control in the cab for operating the towed vehicle's brakes 
independently of the chassis cab's brakes; or
    (E) Any other equipment designed to make it suitable for use as a 
tractor.

An incomplete chassis cab which is not equipped with any of the devices 
set forth in paragraphs (e)(1)(ii) (A) through (E) of this section shall 
be treated as a truck if the purchaser certifies in writing that the 
vehicle will not be equipped for use as a tractor.
    (2) Truck. The term ``truck'' refers to a highway vehicle that is 
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) Gross vehicle weight. (i) For purposes of this section the term 
``gross vehicle weight'' means the maximum total weight of a loaded 
vehicle. Except as otherwise provided in paragraphs (e)(3) (ii) through 
(v) of this section, such maximum total weight shall be the gross 
vehicle weight rating of the article as specified by the manufacturer or 
established by the seller of the completed article, unless the 
Commissioner finds that such rating is unreasonable in light of the 
facts and circumstances in a particular case.
    (ii) A seller must specify or establish a weight rating for each 
chassis, body, or vehicle sold on or after April 1, 1983 if such article 
requires no additional manufacture other than (A) the addition of 
readily attachable articles, such as tire or rim assemblies or minor 
accessories, (B) the performance of minor finishing operations, such as 
painting, or (C) in the case of a chassis, the addition of a body. If an 
article is specially equipped to the purchaser's specifications, such 
specifications may be used to establish the gross vehicle weight of the 
article.
    (iii) A seller shall maintain a record of the gross vehicle weight 
rating of each truck, trailer and semitrailer sold and excluded from the 
tax imposed by section 4051(a)(1) by reason of sections 4051(a) (2), (3) 
and paragraphs (e)(3) (i) through (v) of this section. For this purpose, 
a record of the serial number of each such article shall be treated as a 
record of the gross vehicle weight rating of the article if such rating 
is indicated by the serial number.
    (iv) If (A) the seller's rating indicated in a label or identifying 
device affixed to an article, (B) the rating set forth in the sales 
invoice or warranty agreement, and (C) the advertised rating for that 
article (or two or more identical articles) are inconsistent, the 
highest of such ratings will be considered to be the seller's gross 
vehicle weight rating specified or established for purposes of the tax 
imposed by section 4051(a)(1).
    (v) The seller's gross vehicle weight rating must take into account, 
among other things, the strength of the chassis frame and the axle 
capacity and placement. The Commissioner may exclude from the gross 
vehicle weight rating any readily attachable parts to

[[Page 450]]

the extent the Commissioner finds that the use of such parts in 
computing the gross vehicle weight rating is unreasonable.
    (f) Tax-free sales. With respect to tax-free sales of a chassis or 
body for use as a component of a vehicle other than a highway vehicle, 
similar provisions to paragraphs (e)(2) (ii), (iii), and (iv) of Sec. 
48.4061(a)-1 shall apply.
    (g) Effective date. The provisions of this section shall be 
effective for articles sold on or after April 1, 1983.

[T.D. 7882, 48 FR 14362, Apr. 4, 1983, as amended by T.D. 8879, 65 FR 
17164, Mar. 31, 2000]