Internal Revenue Service TaxLinks.com sm Rev. Rul. 72-334 1972-2 C.B. 543 IRS Headnote A truck manufactured by an American Indian for use in his business is not exempt from the manufacturers tax on motor vehicles since it is not an "article of native Indian handicraft" within the meaning of section 4225 of the Code. Full Text Rev. Rul. 72-334 Advice has been requested whether a truck manufactured by an American Indian is exempt from the manufacturers excise tax imposed by section 4061(a)(1) of the Internal Revenue Code of 1954 under the provisions of section 4225. An Indian who is an enrolled member of a certain tribe manufactured a truck on the reservation for use in his business. This was done by his purchasing a glider kit and assembling it with parts from his used truck. Section 4061(a)(1) of the Code imposes a tax upon the sale by the manufacturer, producer, or importer of certain motor vehicle articles, including automobile truck chassis and bodies. Under the provisions of section 4225 of the Code, no manufacturers excise tax is imposed on any "article of native Indian handicraft" manufactured or produced by Indians on Indian reservations, or in Indian schools, or by Indians under the jurisdiction of the United States Government in Alaska. In the instant case, it is held that the truck is not exempt from the manufacturers excise tax imposed by section 4061(a)(1) of the Code since it is not an "article of native Indian handicraft" within the meaning of section 4225. |