United States Code (Last Updated: May 24, 2014) |
Title 26. INTERNAL REVENUE CODE |
SubTitle D. Miscellaneous Excise Taxes |
Chapter 32. MANUFACTURERS EXCISE TAXES |
SubChapter F. Special Provisions Applicable to Manufacturers Tax |
§ 4218. Use by manufacturer or importer considered sale
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(a) General rule 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.
(b) Tires 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.
(c) Computation of tax 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.
Amendments
1984—Subsec. (a). Pub. L. 98–369, § 735(c)(7)(D), substituted “(other than a tire taxable under section 4071)” for “(other than an article specified in subsection (b), (c), or (d))”.
Subsec. (b). Pub. L. 98–369, § 735(c)(7)(A), (B), struck out “and tubes” after “Tires” in heading, and in text substituted “If” for “Except as provided in subsection (d), if”, and struck out “or inner tube” before “taxable under section 4071”.
Subsec. (c). Pub. L. 98–369, § 735(c)(7)(C), redesignated subsec. (e) as (c). Former subsec. (c), which related to automotive parts and accessories, was struck out.
Subsec. (d). Pub. L. 98–369, § 735(c)(7)(C), struck out subsec. (d) which related to bicycle tires and tubes.
Subsec. (e). Pub. L. 98–369, § 735(c)(7)(C), redesignated subsec. (e) as (c).
1978—Subsec. (a). Pub. L. 95–227 inserted provisions relating to applying first sentence of this subsection to coal taxable under section 4121 of this title.
1976—Subsec. (e). Pub. L. 94–455 struck out “or his delegate” after “Secretary”.
1965—Subsec. (b). Pub. L. 89–44, § 208(c)(1), (2), struck out references to automobile receiving sets from heading, and “or an automobile radio or television receiving set taxable under section 4141,” before “and sells it”.
Subsec. (c). Pub. L. 89–44, § 208(c)(3), (4), struck out reference to radio components and camera lenses from heading, and “a radio or television component taxable under section 4141, or a camera lens taxable under section 4171,” before “and uses it”.
1961—Subsec. (a). Pub. L. 87–61 inserted sentence making subsection inapplicable 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.
1960—Subsec. (a). Pub. L. 86–418, § 2(a)(1), substituted “subsection (b), (c), or (d)” for “subsection (b) or (c)”.
Subsec. (b). Pub. L. 86–418, § 2(a)(2), substituted “Except as provided in subsection (d), if any” for “If any.”
Subsecs. (d), (e). Pub. L. 86–418, § 2(a)(3), added subsec. (d) and redesignated former subsec. (d) as (e).
1958—Pub. L. 85–859 amended section generally, striking out provisions which related to refrigerator components and to sales free of tax by virtue of section 4220 or 4224 of this title, and substituting provisions making manufacturers, producers and importers of parts or accessories taxable under section 4061(b), radio or television components taxable under section 4141, or camera lenses taxable under section 4171 liable for the tax if they use the parts or accessories otherwise than as material in the manufacture or production of, or as component parts of, any other article to be manufactured or produced by them, for provisions which made section inapplicable with respect to such parts if they were used by them as material in the manufacture or production of, or as a component part of, any article.
1955—Subsec. (a)(1). Act
Subsec. (b). Act
Effective Date Of Amendment
Amendment by Pub. L. 98–369 effective, except as otherwise provided, as if included in the provisions of the Highway Revenue Act of 1982, title V of Pub. L. 97–424, to which such amendment relates, see section 736 of Pub. L. 98–369, set out as a note under section 4051 of this title.
Amendment by Pub. L. 95–227 applicable with respect to sales after
Amendment by Pub. L. 89–44 applicable with respect to articles sold on or after
Amendment by Pub. L. 87–61 applicable only in the case of gasoline used on or after
Amendment by Pub. L. 86–418 applicable only with respect to bicycle tires and tubes sold by the manufacturer, producer, or importer thereof on or after the first day of the first month which begins more than 10 days after
Amendment by Pub. L. 85–859 effective on first day of first calendar quarter which begins more than 60 days after
Amendment by act