Internal Revenue Service TaxLinks.com sm Rev. Rul. 63-134 1963-2 C.B. 512 IRS Headnote The manufacturers excise tax on firearms, imposed by section 4181 of the Internal Revenue Code of 1954, applies to sales by the manufacturer, producer, or importer of `blank ammunition,' such as that which is used by sports officials to start races, etc., provided it is suitable for use with a taxable firearm. Full Text Rev. Rul. 63-134 Advice has been requested concerning the applicability of the manufacturers excise tax on firearms to sales of imported `blank ammunition.' A company imports six millimeter crimp shells which it sells for use in starter pistols by sports officials to start races, etc. These shells do not eject projectiles, pellets, or shots but merely explode with a loud report or noise. The shells may also be exploded in certain firearms subject to the tax imposed by section 4181 of the Internal Revenue Code of 1954, producing a similar loud report. Section 4181 of the Code imposes a tax upon the sale by the manufacturer, producer, or importer of pistols, revolvers, firearms (other than pistols and revolvers), shells, and cartridges. The terms `shells' and `cartridges,' as defined in section 48.4181-2(d) of the Manufacturers and Retailers Excise Tax Regulations, include any combination of projectile, explosive, and container which is designed, assembled, and ready for use without further manufacture in firearms, including pistols and revolvers. It is held that `blank ammunition' constitutes `shells' or `cartridges' within the meaning of section 4181 of the Code, provided it is suitable for use with a firearm subject to tax under that section. Accordingly, sales by the manufacturer, producer, or importer of the six millimeter crimp shells described above are subject to the manufacturers excise tax imposed by section 4181 of the Code. |