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EitcEitc 5. Eitc Manufacturers Taxes Table of Contents Importer. Eitc Use considered sale. Eitc Lease considered sale. Eitc Bonus goods. Eitc Taxable Event ExemptionsRequirements for Exempt Sales Credits or Refunds Sport Fishing EquipmentRelated person. Eitc Bows, Quivers, Broadheads, and Points Arrow ShaftsExemption for certain wooden arrows. Eitc CoalExported. Eitc Taxable TiresQualifying intercity or local bus. Eitc Qualifying school bus. Eitc Gas Guzzler TaxVehicles not subject to tax. Eitc Imported automobiles. Eitc VaccinesConditions to allowance. Eitc Taxable Medical Devices The following discussion of manufacturers taxes applies to the tax on: Sport fishing equipment; Fishing rods and fishing poles; Electric outboard motors; Fishing tackle boxes; Bows, quivers, broadheads, and points; Arrow shafts; Coal; Taxable tires; Gas guzzler automobiles; and Vaccines. Eitc Manufacturer. Eitc The term “manufacturer” includes a producer or importer. Eitc A manufacturer is any person who produces a taxable article from new or raw material, or from scrap, salvage, or junk material, by processing or changing the form of an article or by combining or assembling two or more articles. Eitc If you furnish the materials and keep title to those materials and to the finished article, you are considered the manufacturer even though another person actually manufactures the taxable article. Eitc A manufacturer who sells a taxable article in knockdown (unassembled) condition is liable for the tax. Eitc The person who buys these component parts and assembles a taxable article may also be liable for tax as a further manufacturer depending on the labor, material, and overhead required to assemble the completed article if the article is assembled for business use. Eitc Importer. Eitc An importer is a person who brings a taxable article into the United States, or withdraws a taxable article from a customs bonded warehouse for sale or use in the United States. Eitc Sale. Eitc A sale is the transfer of the title to, or the substantial incidents of ownership in, an article to a buyer for consideration that may consist of money, services, or other things. Eitc Use considered sale. Eitc A manufacturer who uses a taxable article is liable for the tax in the same manner as if it were sold. Eitc Lease considered sale. Eitc The lease of an article (including any renewal or extension of the lease) by the manufacturer is generally considered a taxable sale. Eitc However, for the gas guzzler tax, only the first lease (excluding any renewal or extension) of the automobile by the manufacturer is considered a sale. Eitc Manufacturers taxes based on sale price. Eitc The manufacturers taxes imposed on the sale of sport fishing equipment, electric outboard motors, and bows are based on the sale price of the article. Eitc The taxes imposed on coal are based either on the sale price or the weight. Eitc The price for which an article is sold includes the total consideration paid for the article, whether that consideration is in the form of money, services, or other things. Eitc However, you include certain charges made when a taxable article is sold and you exclude others. Eitc To figure the price on which you base the tax, use the following rules. Eitc Include both the following charges in the price. Eitc Any charge for coverings or containers (regardless of their nature). Eitc Any charge incident to placing the article in a condition packed ready for shipment. Eitc Exclude all the following amounts from the price. Eitc The manufacturers excise tax, whether or not it is stated as a separate charge. Eitc The transportation charges pursuant to the sale. Eitc The cost of transportation of goods to a warehouse before their bona fide sale is not excludable. Eitc Delivery, insurance, installation, retail dealer preparation charges, and other charges you incur in placing the article in the hands of the purchaser under a bona fide sale. Eitc Discounts, rebates, and similar allowances actually granted to the purchaser. Eitc Local advertising charges. Eitc A charge made separately when the article is sold and that qualifies as a charge for “local advertising” may, within certain limits, be excluded from the sale price. Eitc Charges for warranty paid at the purchaser's option. Eitc However, a charge for a warranty of an article that the manufacturer requires the purchaser to pay to obtain the article is included in the sale price on which the tax is figured. Eitc Bonus goods. Eitc Allocate the sale price if you give free nontaxable goods with the purchase of taxable merchandise. Eitc Figure the tax only on the sale price attributable to the taxable articles. Eitc Example. Eitc A manufacturer sells a quantity of taxable articles and gives the purchaser certain nontaxable articles as a bonus. Eitc The sale price of the shipment is $1,500. Eitc The normal sale price is $2,000: $1,500 for the taxable articles and $500 for the nontaxable articles. Eitc Since the taxable items represent 75% of the normal sale price, the tax is based on 75% of the actual sale price, or $1,125 (75% of $1,500). Eitc The remaining $375 is allocated to the nontaxable articles. Eitc Taxable Event Tax attaches when the title to the article sold passes from the manufacturer to the buyer. Eitc When the title passes depends on the intention of the parties as gathered from the contract of sale. Eitc In the absence of expressed intention, the legal rules of presumption followed in the jurisdiction where the sale occurs determine when title passes. Eitc If the taxable article is used by the manufacturer, the tax attaches at the time use begins. Eitc The manufacturer is liable for the tax. Eitc Partial payments. Eitc The tax applies to each partial payment received when taxable articles are: Leased, Sold conditionally, Sold on installment with chattel mortgage, or Sold on installment with title to pass in the future. Eitc To figure the tax, multiply the partial payment by the tax rate in effect at the time of the payment. Eitc Exemptions The following sales by the manufacturer are exempt from the manufacturers tax. Eitc Sale of an article to a state or local government for the exclusive use of the state or local government. Eitc This exemption does not apply to the taxes on coal, gas guzzlers, and vaccines. Eitc State is defined in Definitions in chapter 1. Eitc Sale of an article to a nonprofit educational organization for its exclusive use. Eitc This exemption does not apply to the taxes on coal, gas guzzlers, and vaccines. Eitc Nonprofit educational organization is defined under Communications Tax in chapter 4. Eitc Sale of an article to a qualified blood collector organization. Eitc This exemption does not apply to gas guzzlers, recreational equipment, and vaccines. Eitc Qualified blood collector organizations are defined under Communications Tax in chapter 4. Eitc Sale of an article for use by the purchaser as supplies for vessels. Eitc This exemption does not apply to the taxes on coal and vaccines. Eitc Supplies for vessels means ships' stores, sea stores, or legitimate equipment on vessels of war of the United States or any foreign nation, vessels employed in the fisheries or whaling business, or vessels actually engaged in foreign trade. Eitc Sale of an article for use by the purchaser for further manufacture, or for resale by the purchaser to a second purchaser for use by the second purchaser for further manufacture. Eitc This exemption does not apply to the tax on coal and tires. Eitc Use for further manufacture means use in the manufacture or production of an article subject to the manufacturers excise taxes. Eitc If you buy articles tax free and resell or use them other than in the manufacture of another article, you are liable for the tax on their resale or use just as if you had manufactured and sold them. Eitc Sale of an article for export or for resale by the purchaser to a second purchaser for export. Eitc The article may be exported to a foreign country or to a possession of the United States. Eitc A vaccine shipped to a possession of the United States is not considered to be exported. Eitc If an article is sold tax free for export and the manufacturer does not receive proof of export, described later, the manufacturer is liable for the tax. Eitc Sales of articles of native Indian handicraft, such as bows and arrow shafts, manufactured by Indians on reservations, in Indian schools, or under U. Eitc S. Eitc jurisdiction in Alaska. Eitc For tire exemptions, see section 4221(e)(2). Eitc Requirements for Exempt Sales The following requirements must be met for a sale to be exempt from the manufacturers tax. Eitc Registration requirements. Eitc The manufacturer, first purchaser, and second purchaser in the case of resales must be registered. Eitc See the Form 637 instructions for more information. Eitc Exceptions to registration requirements. Eitc Registration is not required for: State or local governments, Foreign purchasers of articles sold or resold for export, The United States, or Parties to a sale of supplies for vessels and aircraft. Eitc Certification requirement. Eitc If the purchaser is required to be registered, the purchaser must give the manufacturer its registration number and certify the exempt purpose for which the article will be used. Eitc The information must be in writing and may be noted on the purchase order or other document furnished by the purchaser to the seller in connection with the sale. Eitc For a sale to a state or local government, an exemption certificate must be signed by an officer or employee authorized by the state or local government. Eitc See Regulations section 48. Eitc 4221-5(c) for the certificate requirements. Eitc For sales for use as supplies for vessels and aircraft, if the manufacturer and purchaser are not registered, the owner or agent of the vessel must provide an exemption certificate to the manufacturer before or at the time of sale. Eitc See Regulations section 48. Eitc 4221-4(d) for the certificate requirements. Eitc Proof of export requirement. Eitc Within 6 months of the date of sale or shipment by the manufacturer, whichever is earlier, the manufacturer must receive proof of exportation. Eitc See Regulations section 48. Eitc 4221-3(d) for evidence that qualifies as proof of exportation. Eitc Proof of resale for further manufacture requirement. Eitc Within 6 months of the date of sale or shipment by the manufacturer, whichever is earlier, the manufacturer must receive proof that the article has been resold for use in further manufacture. Eitc See Regulations section 48. Eitc 4221-2(c) for evidence that qualifies as proof of resale. Eitc Information to be furnished to purchaser. Eitc The manufacturer must indicate to the purchaser that the articles normally would be subject to tax and are being sold tax free for an exempt purpose because the purchaser has provided the required certificate. Eitc Credits or Refunds The manufacturer may be eligible to obtain a credit or refund of the manufacturers tax for certain uses, sales, exports, and price readjustments. Eitc The claim must set forth in detail the facts upon which the claim is based. Eitc Uses, sales, and exports. Eitc A credit or refund (without interest) of the manufacturers taxes may be allowable if a tax-paid article is, by any person: Exported, Used or sold for use as supplies for vessels (except for coal and vaccines), Sold to a state or local government for its exclusive use (except for coal, gas guzzlers, and vaccines), Sold to a nonprofit educational organization for its exclusive use (except for coal, gas guzzlers, and vaccines), Sold to a qualified blood collector organization for its exclusive use (except for gas guzzlers, recreational equipment, and vaccines), or Used for further manufacture of another article subject to the manufacturers taxes (except for coal). Eitc Export. Eitc If a tax-paid article is exported, the exporter or shipper may claim a credit or refund if the manufacturer waives its right to claim the credit or refund. Eitc In the case of a tax-paid article used to make another taxable article, the subsequent manufacturer may claim the credit or refund. Eitc Price readjustments. Eitc In addition, a credit or refund (without interest) may be allowable for a tax-paid article for which the price is readjusted by reason of return or repossession of the article or a bona fide discount, rebate, or allowance for taxes based on price. Eitc Conditions to allowance. Eitc To claim a credit or refund in the case of export; supplies for vessels; or sales to a state or local government, nonprofit educational organization, or qualified blood collector organization; the person who paid the tax must certify on the claim that one of the following applies and that the claimant has the required supporting information. Eitc The claimant sold the article at a tax-excluded price. Eitc The person has repaid, or agreed to repay, the tax to the ultimate vendor of the article. Eitc The person has obtained the written consent of the ultimate vendor to make the claim. Eitc The ultimate vendor generally is the seller making the sale that gives rise to the overpayment of tax. Eitc Claim for further manufacture. Eitc To claim a credit or refund for further manufacture, the claimant must include a statement that contains the following. Eitc The name and address of the manufacturer and the date of payment. Eitc An identification of the article for which the credit or refund is claimed. Eitc The amount of tax paid on the article and the date on which it was paid. Eitc Information indicating that the article was used as material in the manufacture or production of, or as a component part of, a second article manufactured or produced by the manufacturer, or was sold on or in connection with, or with the sale of a second article manufactured or produced by the manufacturer. Eitc An identification of the second article. Eitc For claims by the exporter or shipper, the claim must contain the proof of export and a statement signed by the person that paid the tax waiving the right to claim a credit or refund. Eitc The statement must include the amount of tax paid, the date of payment, and the office to which it was paid. Eitc Claim for price readjustment. Eitc To claim a credit or refund for a price readjustment, the person who paid the tax must include with the claim, a statement that contains the following. Eitc A description of the circumstances that gave rise to the price readjustment. Eitc An identification of the article whose price was readjusted. Eitc The price at which the article was sold. Eitc The amount of tax paid on the article and the date on which it was paid. Eitc The name and address of the purchaser. Eitc The amount repaid to the purchaser or credited to the purchaser's account. Eitc Sport Fishing Equipment A tax of 10% of the sale price is imposed on many articles of sport fishing equipment sold by the manufacturer. Eitc This includes any parts or accessories sold on or in connection with the sale of those articles. Eitc Pay this tax with Form 720. Eitc No tax deposits are required. Eitc Sport fishing equipment includes all the following items. Eitc Fishing rods and poles (and component parts), fishing reels, fly fishing lines, and other fishing lines not over 130 pounds test, fishing spears, spear guns, and spear tips. Eitc Items of terminal tackle, including leaders, artificial lures, artificial baits, artificial flies, fishing hooks, bobbers, sinkers, snaps, drayles, and swivels (but not including natural bait or any item of terminal tackle designed for use and ordinarily used on fishing lines not described in (1)). Eitc The following items of fishing supplies and accessories: fish stringers, creels, bags, baskets, and other containers designed to hold fish, portable bait containers, fishing vests, landing nets, gaff hooks, fishing hook disgorgers, and dressing for fishing lines and artificial flies. Eitc Fishing tip-ups and tilts. Eitc Fishing rod belts, fishing rodholders, fishing harnesses, fish fighting chairs, fishing outriggers, and fishing downriggers. Eitc See Revenue Ruling 88-52 in Cumulative Bulletin 1988-1 for a more complete description of the items of taxable equipment. Eitc Fishing rods and fishing poles. Eitc The tax on fishing rods and fishing poles (and component parts) is 10% of the sales price not to exceed $10 per article. Eitc The tax is paid by the manufacturer, producer, or importer. Eitc Fishing tackle boxes. Eitc The tax on fishing tackle boxes is 3% of the sales price. Eitc The tax is paid by the manufacturer, producer, or importer. Eitc Electric outboard boat motors. Eitc A tax of 3% of the sale price is imposed on the sale by the manufacturer of electric outboard motors. Eitc This includes any parts or accessories sold on or in connection with the sale of those articles. Eitc Certain equipment resale. Eitc The tax on the sale of sport fishing equipment is imposed a second time under the following circumstances. Eitc If the manufacturer sells a taxable article to any person, the manufacturer is liable for the tax. Eitc If the purchaser or any other person then sells it to a person who is related (discussed next) to the manufacturer, that related person is liable for a second tax on any subsequent sale of the article. Eitc The second tax, however, is not imposed if the constructive sale price rules under section 4216(b) apply to the sale by the manufacturer. Eitc If the second tax is imposed, a credit for tax previously paid by the manufacturer is available provided the related person can document the tax paid. Eitc The documentation requirement is generally satisfied only through submission of copies of actual records of the person that previously paid the tax. Eitc Related person. Eitc For the tax on sport fishing equipment, a person is a related person of the manufacturer if that person and the manufacturer have a relationship described in section 465(b)(3)(C). Eitc Bows, Quivers, Broadheads, and Points The tax on bows is 11% (. Eitc 11) of the sales price. Eitc The tax is paid by the manufacturer, producer, or importer. Eitc It applies to bows having a peak draw weight of 30 pounds or more. Eitc The tax is also imposed on the sale of any part or accessory suitable for inclusion in or attachment to a taxable bow and any quiver, broadhead, or point suitable for use with arrows described below. Eitc Pay this tax with Form 720. Eitc No tax deposits are required. Eitc Arrow Shafts The tax on arrow shafts is listed on Form 720. Eitc The tax is paid by the manufacturer, producer, or importer of any arrow shaft (whether sold separately or incorporated as part of a finished or unfinished product) of a type used in the manufacture of any arrow that after its assembly meets either of the following conditions. Eitc It measures 18 inches or more in overall length. Eitc It measures less than 18 inches in overall length but is suitable for use with a taxable bow, described earlier. Eitc Exemption for certain wooden arrows. Eitc After October 3, 2008, the tax does not apply to any shaft made of all natural wood with no laminations or artificial means of enhancing the spine of such shaft (whether sold separately or incorporated as part of a finished or unfinished product) and used in the manufacture of any arrow that after its assembly meets both of the following conditions. Eitc It measures 5/16 of an inch or less in diameter. Eitc It is not suitable for use with a taxable bow, described earlier. Eitc Pay this tax with Form 720. Eitc No tax deposits are required. Eitc Coal A tax is imposed on the first sale of coal mined in the United States. Eitc The producer of the coal is liable for the tax. Eitc The producer is the person who has vested ownership of the coal under state law immediately after the coal is severed from the ground. Eitc Determine vested ownership without regard to any contractual arrangement for the sale or other disposition of the coal or the payment of any royalties between the producer and third parties. Eitc A producer includes any person who extracts coal from coal waste refuse piles (or from the silt waste product that results from the wet washing of coal). Eitc The tax is not imposed on coal extracted from a riverbed by dredging if it can be shown that the coal has been taxed previously. Eitc Tax rates. Eitc The tax on underground-mined coal is the lower of: $1. Eitc 10 a ton, or 4. Eitc 4% of the sale price. Eitc The tax on surface-mined coal is the lower of: 55 cents a ton, or 4. Eitc 4% of the sale price. Eitc Coal will be taxed at the 4. Eitc 4% rate if the selling price is less than $25 a ton for underground-mined coal and less than $12. Eitc 50 a ton for surface-mined coal. Eitc Apply the tax proportionately if a sale or use includes a portion of a ton. Eitc Example. Eitc If you sell 21,000 pounds (10. Eitc 5 tons) of coal from an underground mine for $525, the price per ton is $50. Eitc The tax is $1. Eitc 10 × 10. Eitc 5 tons ($11. Eitc 55). Eitc Coal production. Eitc Coal is produced from surface mines if all geological matter (trees, earth, rock) above the coal is removed before the coal is mined. Eitc Treat coal removed by auger and coal reclaimed from coal waste refuse piles as produced from a surface mine. Eitc Treat coal as produced from an underground mine when the coal is not produced from a surface mine. Eitc In some cases, a single mine may yield coal from both surface mining and underground mining. Eitc Determine if the coal is from a surface mine or an underground mine for each ton of coal produced and not on a mine-by-mine basis. Eitc Determining tonnage or selling price. Eitc The producer pays the tax on coal at the time of sale or use. Eitc In figuring the selling price for applying the tax, the point of sale is f. Eitc o. Eitc b. Eitc (free on board) mine or f. Eitc o. Eitc b. Eitc cleaning plant if you clean the coal before selling it. Eitc This applies even if you sell the coal for a delivered price. Eitc The f. Eitc o. Eitc b. Eitc mine or f. Eitc o. Eitc b. Eitc cleaning plant is the point at which you figure the number of tons sold for applying the applicable tonnage rate, and the point at which you figure the sale price for applying the 4. Eitc 4% rate. Eitc The tax applies to the full amount of coal sold. Eitc However, the IRS allows a calculated reduction of the taxable weight of the coal for the weight of the moisture in excess of the coal's inherent moisture content. Eitc Include in the sale price any additional charge for a freeze-conditioning additive in figuring the tax. Eitc Do not include in the sales price the excise tax imposed on coal. Eitc Coal used by the producer. Eitc The tax on coal applies if the coal is used by the producer in other than a mining process. Eitc A mining process means the same for this purpose as for percentage depletion. Eitc For example, the tax does not apply if, before selling the coal, you break it, clean it, size it, or apply any other process considered mining under the rules for depletion. Eitc In this case, the tax applies only when you sell the coal. Eitc The tax does not apply to coal used as fuel in the coal drying process since it is considered to be used in a mining process. Eitc However, the tax does apply when you use the coal as fuel or as an ingredient in making coke since the coal is not used in a mining process. Eitc You must use a constructive sale price to figure the tax under the 4. Eitc 4% rate if you use the coal in other than a mining process. Eitc Base your constructive sale price on sales of a like kind and grade of coal by you or other producers made f. Eitc o. Eitc b. Eitc mine or cleaning plant. Eitc Normally, you use the same constructive price used to figure your percentage depletion deduction. Eitc Blending. Eitc If you blend surface-mined coal with underground-mined coal during the cleaning process, you must figure the excise tax on the sale of the blended, cleaned coal. Eitc Figure the tax separately for each type of coal in the blend. Eitc Base the tax on the amount of each type in the blend if you can determine the proportion of each type of coal contained in the final blend. Eitc Base the tax on the ratio of each type originally put into the cleaning process if you cannot determine the proportion of each type of coal in the blend. Eitc However, the tax is limited to 4. Eitc 4% of the sale price per ton of the blended coal. Eitc Exemption from tax. Eitc The tax does not apply to sales of lignite and imported coal. Eitc The only other exemption from the tax on the sale of coal is for coal exported as discussed next. Eitc Exported. Eitc The tax does not apply to the sale of coal if the coal is in the stream of export when sold by the producer and the coal is actually exported. Eitc Coal is in the stream of export when sold by the producer if the sale is a step in the exportation of the coal to its ultimate destination in a foreign country. Eitc For example, coal is in the stream of export when: The coal is loaded on an export vessel and title is transferred from the producer to a foreign purchaser, or The producer sells the coal to an export broker in the United States under terms of a contract showing that the coal is to be shipped to a foreign country. Eitc Proof of export includes any of the following items. Eitc A copy of the export bill of lading issued by the delivering carrier. Eitc A certificate signed by the export carrier's agent or representative showing actual exportation of the coal. Eitc A certificate of landing signed by a customs officer of the foreign country to which the coal is exported. Eitc If the foreign country does not have a customs administrator, a statement of the foreign consignee showing receipt of the coal. Eitc Taxable Tires Taxable tires are divided into three categories for reporting and figuring the tax as described below. Eitc A tax is imposed on taxable tires sold by the manufacturer, producer, or importer at the rate of $. Eitc 0945 ($. Eitc 04725 in the case of a biasply tire or super single tire) for each 10 pounds of the maximum rated load capacity over 3,500 pounds. Eitc The three categories for reporting the tax and the tax rate are listed below. Eitc Taxable tires other than biasply or super single tires at $. Eitc 0945. Eitc Taxable tires, biasply or super single tires (other than super single tires designed for steering) at $. Eitc 04725. Eitc Taxable tires, super single tires designed for steering at $. Eitc 0945. Eitc A taxable tire is any tire of the type used on highway vehicles if wholly or partially made of rubber and if marked according to federal regulations for highway use. Eitc A biasply tire is a pneumatic tire on which the ply cords that extend to the beads are laid at alternate angles substantially less than 90 degrees to the centerline of the tread. Eitc A super single tire is a tire greater than 13 inches in cross section width designed to replace 2 tires in a dual fitment. Eitc Special rule, manufacturer's retail stores. Eitc The excise tax on taxable tires is imposed at the time the taxable tires are delivered to the manufacturer-owned retail stores, not at the time of sale. Eitc Tires on imported articles. Eitc The importer of an article equipped with taxable tires is treated as the manufacturer of the tires and is liable for the taxable tire excise tax when the article is sold (except in the case of an automobile bus chassis or body with tires). Eitc Tires exempt from tax. Eitc The tax on taxable tires does not apply to the following items. Eitc Domestically recapped or retreaded tires if the tires have been sold previously in the United States and were taxable tires at the time of sale. Eitc Tire carcasses not suitable for commercial use. Eitc Tires for use on qualifying intercity, local, and school buses. Eitc For tax-free treatment, the registration requirements discussed earlier under Requirements for Exempt Sales apply. Eitc Tires sold for the exclusive use of the Department of Defense or the Coast Guard. Eitc Tires of a type used exclusively on mobile machinery. Eitc A taxable tire used on mobile machinery is not exempt from tax. Eitc Qualifying intercity or local bus. Eitc This is any bus used mainly (more than 50%) to transport the general public for a fee and that either operates on a schedule along regular routes or seats at least 20 adults (excluding the driver). Eitc Qualifying school bus. Eitc This is any bus substantially all the use (85% or more) of which is to transport students and employees of schools. Eitc Credit or refund. Eitc A credit or refund (without interest) is allowable on tax-paid tires if the tires have been: Exported; Sold to a state or local government for its exclusive use; Sold to a nonprofit educational organization for its exclusive use (as defined under Communications Tax in chapter 4); Sold to a qualified blood collector organization (as defined under Communications Tax in chapter 4) for its exclusive use in connection with a vehicle the organization certifies will be primarily used in the collection, storage, or transportation of blood; Used or sold for use as supplies for vessels; or Sold in connection with qualified intercity, local, or school buses. Eitc Also, a credit or refund (without interest) is allowable on tax-paid tires sold by any person on, or in connection with, any other article that is sold or used in an activity listed above. Eitc The person who paid the tax is eligible to make the claim. Eitc Gas Guzzler Tax Tax is imposed on the sale by the manufacturer of automobiles of a model type that has a fuel economy standard as measured by the Environmental Protection Agency (EPA) of less than 22. Eitc 5 miles per gallon. Eitc If you import an automobile for personal use, you may be liable for this tax. Eitc Figure the tax on Form 6197, as discussed later. Eitc The tax rate is based on fuel economy rating. Eitc The tax rates for the gas guzzler tax are shown on Form 6197. Eitc A person that lengthens an existing automobile is the manufacturer of an automobile. Eitc Automobiles. Eitc An automobile (including limousines) means any four-wheeled vehicle that is: Rated at an unloaded gross vehicle weight of 6,000 pounds or less, Propelled by an engine powered by gasoline or diesel fuel, and Intended for use mainly on public streets, roads, and highways. Eitc Vehicles not subject to tax. Eitc For the gas guzzler tax, the following vehicles are not considered automobiles. Eitc Limousines with a gross unloaded vehicle weight of more than 6,000 pounds. Eitc Vehicles operated exclusively on a rail or rails. Eitc Vehicles sold for use and used primarily: As ambulances or combination ambulance-hearses, For police or other law enforcement purposes by federal, state, or local governments, or For firefighting purposes. Eitc Vehicles treated under 49 U. Eitc S. Eitc C. Eitc 32901 (1978) as non-passenger automobiles. Eitc This includes limousines manufactured primarily to transport more than 10 persons. Eitc The manufacturer can sell a vehicle described in item (3) tax free only when the sale is made directly to a purchaser for the described emergency use and the manufacturer and purchaser (other than a state or local government) are registered. Eitc Treat an Indian tribal government as a state only if the police or other law enforcement purposes are an essential tribal government function. Eitc Model type. Eitc Model type is a particular class of automobile as determined by EPA regulations. Eitc Fuel economy. Eitc Fuel economy is the average number of miles an automobile travels on a gallon of gasoline (or diesel fuel) rounded to the nearest 0. Eitc 1 mile as figured by the EPA. Eitc Imported automobiles. Eitc The tax also applies to automobiles that do not have a prototype-based fuel economy rating assigned by the EPA. Eitc An automobile imported into the United States without a certificate of conformity to United States emission standards and that has no assigned fuel economy rating must be either: Converted by installation of emission controls to conform in all material respects to an automobile already certified for sale in the United States, or Modified by installation of emission control components and individually tested to demonstrate emission compliance. Eitc An imported automobile that has been converted to conform to an automobile already certified for sale in the United States may use the fuel economy rating assigned to that certified automobile. Eitc A fuel economy rating is not generally available for modified imported automobiles because the EPA does not require a highway fuel economy test on them. Eitc A separate highway fuel economy test would be required to devise a fuel economy rating (otherwise the automobile is presumed to fall within the lowest fuel economy rating category). Eitc For more information about fuel economy ratings for imported automobiles, see Revenue Ruling 86-20 and Revenue Procedure 86-9 in Cumulative Bulletin 1986-1, and Revenue Procedure 87-10 in Cumulative Bulletin 1987-1. Eitc Exemptions. Eitc No one is exempt from the gas guzzler tax, including the federal government, state and local governments, qualified blood collector organizations, and nonprofit educational organizations. Eitc However, see Vehicles not subject to tax, earlier. Eitc Form 6197. Eitc Use Form 6197 to figure your tax liability for each quarter. Eitc Attach Form 6197 to your Form 720 for the quarter. Eitc See the Form 6197 instructions for more information and the one-time filing rules. Eitc Credit or refund. Eitc If the manufacturer paid the tax on a vehicle that is used or resold for an emergency use (see item (3) under Vehicles not subject to tax), the manufacturer can claim a credit or refund. Eitc For information about how to file for credits or refunds, see the Instructions for Form 720 or Form 8849. Eitc Vaccines Tax is imposed on certain vaccines sold by the manufacturer in the United States. Eitc A taxable vaccine means any of the following vaccines. Eitc Any vaccine containing diphtheria toxoid. Eitc Any vaccine containing tetanus toxoid. Eitc Any vaccine containing pertussis bacteria, extracted or partial cell bacteria, or specific pertussis antigens. Eitc Any vaccine containing polio virus. Eitc Any vaccine against measles. Eitc Any vaccine against mumps. Eitc Any vaccine against rubella. Eitc Any vaccine against hepatitis A. Eitc Any vaccine against hepatitis B. Eitc Any vaccine against chicken pox. Eitc Any vaccine against rotavirus gastroenteritis. Eitc Any HIB vaccine. Eitc Any conjugate vaccine against streptococcus pneumoniae. Eitc Any trivalent vaccine against influenza or any other vaccine against influenza. Eitc Any meningococcal vaccine. Eitc Any vaccine against the human papillomavirus. Eitc The effective date for the tax on any vaccine against influenza, other than trivalent influenza vaccines, is the later of August 1, 2013, or the date the Secretary of Health and Human Services lists a vaccine against seasonal influenza for purposes of compensation for any vaccine-related injury or death through the Vaccine Injury Compensation Trust Fund. Eitc The tax is $. Eitc 75 per dose of each taxable vaccine. Eitc The tax per dose on a vaccine that contains more than one taxable vaccine is $. Eitc 75 times the number of taxable vaccines. Eitc Taxable use. Eitc Any manufacturer (including a governmental entity) that uses a taxable vaccine before it is sold will be liable for the tax in the same manner as if the vaccine was sold by the manufacturer. Eitc Credit or refund. Eitc A credit or refund (without interest) is available if the vaccine is: Returned to the person who paid the tax (other than for resale), or Destroyed. Eitc The claim for a credit or refund must be filed within 6 months after the vaccine is returned or destroyed. Eitc Conditions to allowance. Eitc To claim a credit or refund, the person who paid the tax must have repaid or agreed to repay the tax to the ultimate purchaser of the vaccine or obtained the written consent of such purchaser to allowance of the credit or refund. Eitc Taxable Medical Devices Taxable medical devices. Eitc The tax on the sale of certain medical devices by the manufacturer, producer, or importer of the device is 2. Eitc 3% (. Eitc 023) of the sales price. Eitc A taxable medical device is a device that is listed as a device with the Food and Drug Administration (FDA) under section 510(j) of the Federal Food, Drug, and Cosmetic Act and 21 CFR part 807, pursuant to FDA requirements. Eitc There are specific exemptions for eyeglasses, contact lenses, and hearing aids. Eitc There is also an exemption for devices that are determined by the Secretary to be of a type that are generally purchased by the general public at retail for individual use (this exemption is known as the retail exemption). Eitc See T. Eitc D. Eitc 9604 for information on how to determine whether a device falls within the retail exemption, and examples of how a taxpayer might evaluate a given device. Eitc More information. Eitc For more information on the medical device tax, see section 4191, T. Eitc D. Eitc 9604, and Notice 2012-77. Eitc You can find T. Eitc D. Eitc 9604 and Notice 2012-77 on pages 730 and 781, respectively, of I. Eitc R. Eitc B. Eitc 2012-52 at www. Eitc irs. Eitc gov/pub/irs-irbs/irb12-52. Eitc pdf. Eitc Prev Up Next Home More Online Publications
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