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.
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.
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.
Aug. 16, 1954, ch. 73668A Stat. 494Aug. 11, 1955, ch. 805, § 1(a)69 Stat. 689Pub. L. 85–859, title I, § 11872 Stat. 1281Pub. L. 86–418, § 2(a)74 Stat. 38Pub. L. 87–61, title II, § 205(b)75 Stat. 126Pub. L. 89–44, title II, § 208(c)79 Stat. 141Pub. L. 94–455, title XIX, § 1906(b)(13)(A)90 Stat. 1834Pub. L. 95–227, § 2(b)(1)92 Stat. 11Pub. L. 98–369, div. A, title VII, § 735(c)(7)98 Stat. 983(, ; , (b), ; , , ; , , ; , , ; , , ; , , ; , , ; , , .)
Editorial Notes
Amendments
Pub. L. 98–369, § 735(c)(7)(D)1984—Subsec. (a). , substituted “(other than a tire taxable under section 4071)” for “(other than an article specified in subsection (b), (c), or (d))”.
Pub. L. 98–369, § 735(c)(7)(A)Subsec. (b). , (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”.
Pub. L. 98–369, § 735(c)(7)(C)Subsec. (c). , redesignated subsec. (e) as (c). Former subsec. (c), which related to automotive parts and accessories, was struck out.
Pub. L. 98–369, § 735(c)(7)(C)Subsec. (d). , struck out subsec. (d) which related to bicycle tires and tubes.
Pub. L. 98–369, § 735(c)(7)(C)Subsec. (e). , redesignated subsec. (e) as (c).
Pub. L. 95–227section 4121 of this title1978—Subsec. (a). inserted provisions relating to applying first sentence of this subsection to coal taxable under .
Pub. L. 94–4551976—Subsec. (e). struck out “or his delegate” after “Secretary”.
Pub. L. 89–44, § 208(c)(1)1965—Subsec. (b). , (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”.
Pub. L. 89–44, § 208(c)(3)Subsec. (c). , (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”.
Pub. L. 87–611961—Subsec. (a). 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.
Pub. L. 86–418, § 2(a)(1)1960—Subsec. (a). , substituted “subsection (b), (c), or (d)” for “subsection (b) or (c)”.
Pub. L. 86–418, § 2(a)(2)Subsec. (b). , substituted “Except as provided in subsection (d), if any” for “If any.”
Pub. L. 86–418, § 2(a)(3)Subsecs. (d), (e). , added subsec. (d) and redesignated former subsec. (d) as (e).
Pub. L. 85–8591958— 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 , § 1(a), inserted as tax exempt articles under this chapter, automobile parts or accessories, refrigerator, radio, or television components, or camera lenses taxable under section 4061(b), 4111, or 4171, respectively, of this title.
Subsec. (b). Act , § 1(b), excepted from application of section automobile parts or accessories, refrigerator, radio, or television components, and camera lenses, taxable under sections 4061(b), 4111, 4141, and 4171, respectively, of this title, when for use by the purchaser in the manufacture or production of, or as a component part of, any article.
Statutory Notes and Related Subsidiaries
Effective Date of 1984 Amendment
Pub. L. 98–369Pub. L. 97–424section 736 of Pub. L. 98–369section 4051 of this titleAmendment by effective, except as otherwise provided, as if included in the provisions of the Highway Revenue Act of 1982, title V of , to which such amendment relates, see , set out as a note under .
Effective Date of 1978 Amendment
Pub. L. 95–227section 2(d) of Pub. L. 95–227section 4121 of this titleAmendment by applicable with respect to sales after , see , set out as an Effective Date note under .
Effective Date of 1965 Amendment
Pub. L. 89–44section 701(a) of Pub. L. 89–44section 4161 of this titleAmendment by applicable with respect to articles sold on or after , except insofar as such amendments related to the taxes imposed by sections 4061(b), 4091, and 4131 and, as to such taxes, applicable with respect to articles sold on or after , see , set out as a note under .
Effective Date of 1961 Amendment
Pub. L. 87–61section 208 of Pub. L. 87–61section 4041 of this titleAmendment by applicable only in the case of gasoline used on or after , see , set out as a note under .
Effective Date of 1960 Amendment
Pub. L. 86–418section 4 of Pub. L. 86–418section 4221 of this titleAmendment by 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 , see , set out as a note under .
Effective Date of 1958 Amendment
Pub. L. 85–859Pub. L. 85–85972 Stat. 1275Amendment by effective on first day of first calendar quarter which begins more than 60 days after , see section 1 (c) of , , .
Effective Date of 1955 Amendment
section 6416 of this titleAmendment by act , effective on first day of first month which begins more than ten days after , see section 3 of act , set out as a note under .