Auto Emblems Are Exempted From Excise
December 31, 1922
Internal Revenue Bureau Holds Tags Are Not Considered as Accessories.
Emblems designed to be attached to automobiles to show membership in automobile clubs and associations are no longer subject to Federal excise tax, according to a ruling by the Internal Revenue Bureau. The question of the justice of this tax was raised by the legislative board of the National Motorists Association.
Under regulations related to the purpose of interpreting section 900 of the Revenue Acts of 1918 and 1921, the radiator emblem was held to fall within the category of an automobile accessory or part.
The request which brought about the amendment to the regulations was submitted several weeks ago to Deputy Commissioner A. C. Holden in charge of sales tax. It was supplemented by a brief which emphasized the points brought out in the oral argument as to why the emblem was improperly classified.
These arguments were fully sustained in a communication from Deputy Commissioner Holden, in which he says:
"You are advised that this office now holds that emblems, designed to be attached to automobiles to show membership in automobile clubs, associations, etc., are not considered automobile accessories or parts and are not subject to tax under section 900 of the Revenue Acts of 1918 and 1921."
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