26 U.S.C. § 4218 — Use by manufacturer or importer considered sale
submitted 72 years ago by ch. 736 to r/title-26-INTERNAL-REVENUE-CODE · 286 words · no verdicts yet
A person who manufactures, produces, or imports a taxable article and uses it in specified ways is taxed as though the person sold it. Special rules cover tires, gasoline, coal, and how the tax price is calculated.
(a) General rule. A person who manufactures, produces, or imports an article, other than a section 4071 taxable tire*, and uses it is liable for this chapter’s tax as if the person sold it. This does not apply when gasoline is used for a nonfuel purpose as material in making another article the person will make. For coal taxable under section 4121, ignore the parenthetical exception in the first sentence.
(b) Tires. A person who makes, produces, or imports a section 4071 taxable tire and sells it with or in connection with an article, or uses it, is taxed as if the person sold the article.
(c) Tax calculation. Except as section 4223(b) provides, if liability is based on sale price, calculate tax using the ordinary-trade price at which the same or similar articles are sold by their manufacturers, producers, or importers, as the Secretary* determines.
If any person manufactures, produces, or imports an article (other than a tire taxable under section 4071) and uses it (otherwise than as material in the manufacture or production of, or as a component part of, another article taxable under this chapter to be manufactured or produced by him), then he shall be liable for tax under this chapter in the same manner as if such article were sold by him. This subsection shall not apply in the case of gasoline used by any person, for nonfuel purposes, as a material in the manufacture or production of another article to be manufactured or produced by him. For the purpose of applying the first sentence of this subsection to coal taxable under section 4121, the words “(otherwise than as material in the manufacture or production of, or as a component part of, another article taxable under this chapter to be manufactured or produced by him)” shall be disregarded.
If any person manufactures, produces, or imports a tire taxable under section 4071, and sells it on or in connection with the sale of any article, or uses it, then he shall be liable for tax under this chapter in the same manner as if such article were sold by him.
Except as provided in section 4223(b), in any case in which a person is made liable for tax by the preceding provisions of this section, the tax (if based on the price for which the article is sold) shall be computed on the price at which such or similar articles are sold, in the ordinary course of trade, by manufacturers, producers, or importers, thereof, as determined by the Secretary*.
Source credit: (Aug. 16, 1954, ch. 736, 68A Stat. 494; Aug. 11, 1955, ch. 805, § 1(a), (b), 69 Stat. 689; Pub. L. 85–859, title I, § 118, Sept. 2, 1958, 72 Stat. 1281; Pub. L. 86–418, § 2(a), Apr. 8, 1960, 74 Stat. 38; Pub. L. 87–61, title II, § 205(b), June 29, 1961, 75 Stat. 126; Pub. L. 89–44, title II, § 208(c), June 21, 1965, 79 Stat. 141; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 95–227, § 2(b)(1), Feb. 10, 1978, 92 Stat. 11; Pub. L. 98–369, div. A, title VII, § 735(c)(7), July 18, 1984, 98 Stat. 983.)
- 1954Enacted · Act of Aug. 16, 1954, ch. 736
- 1955Amended · Act of Aug. 11, 1955, ch. 805 · 69 Stat. 689
- 1958Amended · Pub. L. 85-859 · 72 Stat. 1281
- 1960Amended · Pub. L. 86-418 · 74 Stat. 38
- 1961Amended · Pub. L. 87-61 · 75 Stat. 126
- 1965Amended · Pub. L. 89-44 · 79 Stat. 141
- 1976Amended · Pub. L. 94-455 · 90 Stat. 1834
- 1978Amended · Pub. L. 95-227 · 92 Stat. 11
- 1984Amended · Pub. L. 98-369 · 98 Stat. 983
A history note hasn’t been published yet. The record shows enactment by ch. 736 on 1954-08-16.
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