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Revenue Ruling 69-209

Rev. Rul. 69-209 1969-1 C.B. 287

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Headnote

Pistols and revolvers purchased by state or local law enforcement officers with their private funds do not come within the scope of the exemption from manufacturers excise tax for sales “to a State or local government for the exclusive use of a State or local government.”

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FACTS

A company manufactures pistols and revolvers of the type subject to the manufacturers excise tax imposed by section 4181 of the Internal Revenue Code of 1954. The manufacturer sells some of these articles directly to law enforcement officers of a State or local government who are required to obtain the weapons for use in carrying out their duties. In other instances, the manufacturer sells pistols and revolvers to dealers who resell them to law enforcement officers. In both situations, payment for the weapon is made from the private funds of the officers.

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HOLDING

Held, in neither situation above do the sales of the pistols and revolvers come within the scope of the exemption provided by section 4221(a)(4) of the Code for sales of taxable articles by a manufacturer “to a State or local government for the exclusive use of a State or local government.” Therefore, the tax imposed by section 4181 of the Code is applicable to sales of the pistols and revolvers under the circumstances described.

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EFFECTIVE DATE

Under the authority granted by section 7805(b) of the Code, this ruling will not be applied with respect to pistols and revolvers sold before June 1, 1969.