Certain coin-operated service
Service paid for by inserting coins in coin-operated telephones available to the public shall not be subject to the tax imposed by section 4251 with respect to local telephone service, or with respect to toll telephone service if the charge for such toll telephone service is less than 25 cents; except that where such coin-operated telephone service is furnished for a guaranteed amount, the amounts paid under such guarantee plus any fixed monthly or other periodic charge shall be subject to the tax.
News services
No tax shall be imposed under section 4251, except with respect to local telephone service, on any payment received from any person for services used in the collection of news for the public press, or a news ticker service furnishing a general news service similar to that of the public press, or radio broadcasting, or in the dissemination of news through the public press, or a news ticker service furnishing a general news service similar to that of the public press, or by means of radio broadcasting, if the charge for such service is billed in writing to such person.
International, etc., organizations
No tax shall be imposed under section 4251 on any payment received for services furnished to an international organization, or to the American National Red Cross.
Servicemen in combat zone
No tax shall be imposed under section 4251 on any payment received for any toll telephone service which originates within a combat zone, as defined in section 112, from a member of the Armed Forces of the United States performing service in such combat zone, as determined under such section, provided a certificate, setting forth such facts as the Secretary may by regulations prescribe, is furnished to the person receiving such payment.
Items otherwise taxed
Only one payment of tax under section 4251 shall be required with respect to the tax on any service, notwithstanding the lines or stations of one or more persons are used in furnishing such service.
Common carriers and communications companies
No tax shall be imposed under section 4251 on the amount paid for any toll telephone service described in section 4252(b)(2) to the extent that the amount so paid is for use by a common carrier, telephone or telegraph company, or radio broadcasting station or network in the conduct of its business as such.
Installation charges
No tax shall be imposed under section 4251 on so much of any amount paid for the installation of any instrument, wire, pole, switchboard, apparatus, or equipment as is properly attributable to such installation.
Nonprofit hospitals
No tax shall be imposed under section 4251 on any amount paid by a nonprofit hospital for services furnished to such organization. For purposes of this subsection, the term “nonprofit hospital” means a hospital referred to in section 170(b)(1)(A)(iii) which is exempt from income tax under section 501(a).
State and local governmental exemption
Under regulations prescribed by the Secretary, no tax shall be imposed under section 4251 upon any payment received for services or facilities furnished to the government of any State, or any political subdivision thereof, or the District of Columbia.
Exemption for nonprofit educational organizations
Under regulations prescribed by the Secretary, no tax shall be imposed under section 4251 on any amount paid by a nonprofit educational organization for services or facilities furnished to such organization. For purposes of this subsection, the term “nonprofit educational organization” means an educational organization described in section 170(b)(1)(A)(ii) which is exempt from income tax under section 501(a). The term also includes a school operated as an activity of an organization described in section 501(c)(3) which is exempt from income tax under section 501(a), if such school normally maintains a regular faculty and curriculum and normally has a regularly enrolled body of pupils or students in attendance at the place where its educational activities are regularly carried on.
Exemption for qualified blood collector organizations
Under regulations provided by the Secretary, no tax shall be imposed under section 4251 on any amount paid by a qualified blood collector organization (as defined in section 7701(a)(49)) for services or facilities furnished to such organization.
Filing of exemption certificates
In general
In order to claim an exemption under subsection (c), (h), (i), (j), or (k), a person shall provide to the provider of communications services a statement (in such form and manner as the Secretary may provide) certifying that such person is entitled to such exemption.
Duration of certificate
Aug. 16, 1954, ch. 73668A Stat. 504Pub. L. 85–859, title I, § 133(a)72 Stat. 1290Pub. L. 86–344, § 4(a)73 Stat. 619Pub. L. 87–508, § 4(b)76 Stat. 115Pub. L. 89–44, title III, § 30279 Stat. 146Pub. L. 89–368, title II, § 202(b)80 Stat. 66Pub. L. 91–172, title I, § 101(j)(27)83 Stat. 529Pub. L. 94–455, title XIX90 Stat. 1811Pub. L. 101–508, title XI, § 11217(c)(1)104 Stat. 1388–438Pub. L. 109–280, title XII, § 1207(c)120 Stat. 1070(, ; , , ; , , ; , , ; , , ; , , ; , , ; , §§ 1904(a)(6), 1906(b)(13)(A), , , 1834; , , ; , , .)
Editorial Notes
Codification
Section 1207(c) of Pub. L. 109–280, which directed the amendment of section 4253 without specifying the act to be amended, was executed to this section, which is section 4253 of the Internal Revenue Code of 1986, to reflect the probable intent of Congress. See 2006 Amendment notes below.
Pub. L. 90–364, title I, § 105(b)(3)82 Stat. 266Pub. L. 91–172, title VII, § 702(b)(3)83 Stat. 660Pub. L. 91–614, title II, § 201(b)(3)84 Stat. 1843section 4251 of this titlePub. L. 96–499Pub. L. 97–34Pub. L. 97–248Pub. L. 98–369Pub. L. 99–514Pub. L. 100–203Pub. L. 101–508This subchapter, relating to the tax on communications, was repealed by , , , as amended by , , ; , , , effective with respect to amounts paid pursuant to bills first rendered on or after . In the case of communications services rendered before , for which a bill has not been rendered before , a bill shall be treated as having been first rendered on . Repeal of this subchapter was not executed in view of the amendments to by , , , , , , and , extending the date in (and finally eliminating) provisions which had reduced the tax to zero after a specified date.
Amendments
Pub. L. 109–280, § 1207(c)(1)l2006—Subsec. (k). , added subsec. (k). Former subsec. (k) redesignated (). See Codification note above.
lPub. L. 109–280, § 1207(c)(1)lSubsec. (). , redesignated subsec. (k) as (). See Codification note above.
lPub. L. 109–280, § 1207(c)(2)Subsec. ()(1). , substituted “(j), or (k)” for “or (j)”. See Codification note above.
Pub. L. 101–5081990—Subsec. (k). added subsec. (k).
Pub. L. 94–455, § 1906(b)(13)(A)1976—Subsec. (d). , struck out “or his delegate” after “Secretary”.
Pub. L. 94–455, § 1904(a)(6)Subsecs. (i), (j). , added subsecs. (i) and (j).
Pub. L. 91–1721969—Subsec. (h). substituted “section 170(b)(1)(A)(iii)” for “section 503(b)(5)”.
Pub. L. 89–3681966—Subsec. (h). added subsec. (h).
Pub. L. 89–441965—Subsec. (a). substituted “with respect to local telephone service, or with respect to toll telephone service if the charge for such toll telephone service is less than 25 cents”, for “with respect to general telephone service, or with respect to toll telephone service or telegraph service if the charge for such toll telephone service or telegraph service is less than 25 cents”.
Pub. L. 89–44Subsec. (b). substituted “local telephone service” for “general telephone service” and “such service” for “such services”.
Pub. L. 89–44Subsec. (c). substituted “International, etc., organizations” for “Certain organizations” in heading.
Pub. L. 89–44Subsec. (d). reenacted subsec. (d) without change.
Pub. L. 89–44Subsec. (e). substituted “any service” for “toll telephone service, telegraph service, or teletypewriter exchange service”.
Pub. L. 89–44Subsec. (f). substituted amounts paid for any toll telephone service for amounts paid for wire mileage service, wire and equipment service, and use of any telephone or radiotelephone line or channel which constitutes general telephone service if such line or channel connects stations between any two of which there would otherwise be a toll charge.
Pub. L. 89–44Subsec. (g). reenacted subsec. (g) without change.
Pub. L. 89–44Subsecs. (h) to (j). struck out subsecs. (h) to (j), which related to terminal facilities in case of wire mileage service and to certain interior and private communications services.
Pub. L. 87–5081962—Subsec. (j). added subsec. (j).
Pub. L. 86–3441959—Subsec. (f). substituted “Common carriers and communications companies” for “Special wire service in company business” in heading, incorporated existing provisions in opening and closing statements and par. (1) and added par. (2).
Pub. L. 85–8591958—Subsec. (a). substituted “general telephone service, or with respect to toll telephone service or telegraph service if the charge for such toll telephone service or telegraph service is less than 25 cents” for “local telephone service”.
Pub. L. 85–859Subsec. (b). substituted “general telephone service, on any payment received from any person for services used” for “local telephone service, upon any payment received from any person for services or facilities utilized”.
Pub. L. 85–859Subsec. (c). substituted “on any payment received for services furnished to an international organization, or to the American National Red Cross” for “upon any payment received for services or facilities furnished to an international organization, or any organization created by act of Congress to act in matters of relief under the treaty of Geneva of ”.
Pub. L. 85–859Subsec. (d). substituted “on any payment received for any toll telephone service” for “with respect to long distance telephone service upon any payment received for any telephone or radio telephone message”.
Pub. L. 85–859Subsec. (e). substituted “toll telephone service, telegraph service, or teletypewriter exchange service” for “long distance telephone service or telegraph service” and “in furnishing such service” for “in the transmission of such dispatch, message or conversation”.
Pub. L. 85–859Subsec. (f). substituted “any wire mileage service or wire and equipment service as is used in the conduct” for “the service described in sections 4252(d) and (e) as is utilized in the conduct”.
Pub. L. 85–859Subsecs. (g) to (i). added subsecs. (g) to (i).
Statutory Notes and Related Subsidiaries
Effective Date of 2006 Amendment
Pub. L. 109–280section 1207(g)(1) of Pub. L. 109–280section 4041 of this titleAmendment by effective , see , set out as a note under .
Effective Date of 1990 Amendment
Pub. L. 101–508, title XI, § 11217(c)(2)104 Stat. 1388–438
In general .—
Duration of existing certificates .—
Effective Date of 1976 Amendment
section 1904(a)(6) of Pub. L. 94–455section 1904(d) of Pub. L. 94–455section 4041 of this titleAmendment by effective on first day of first month which begins more than 90 days after , see , set out as a note under .
Effective Date of 1969 Amendment
Pub. L. 91–172section 101(k)(1) of Pub. L. 91–172section 4940 of this titleAmendment by effective , see , set out as an Effective Date note under .
Effective Date of 1966 Amendment
Pub. L. 89–368Amendment by applicable to amounts paid pursuant to bills first rendered on or after , for services rendered on or after such date and to amounts paid pursuant to bills rendered on or after such date for services which were rendered before such date and for which no previous bill was rendered except with respect to such services as were rendered more than two months before such date and, as to services rendered more than 2 months before such date, direction that the provisions of subchapter B of chapter 33 of the Code in effect at the time such services were rendered, be applied, subject to the provision of section 701(b)(2) of the Excise Tax Reduction Act of 1965.
Effective Date of 1965 Amendment
Pub. L. 89–44section 701(b)(2)(A) of Pub. L. 89–44section 4251 of this titleAmendment by applicable to amounts paid pursuant to bills rendered on or after , for services rendered on or after such date, but, in the case of amounts paid pursuant to bills rendered after , for services rendered before such date for which no previous bill had been rendered, applicable except with respect to such services as were rendered more than two months before such date, see , set out as a note under .
Effective Date of 1962 Amendment
Pub. L. 87–508section 4(c) of Pub. L. 87–508section 4252 of this titleAmendment by applicable with respect to services furnished on or after , see , set out as a note under .
Effective Date of 1959 Amendment
Pub. L. 86–344, § 4(b)73 Stat. 619Pub. L. 99–514, § 2100 Stat. 2095
Effective Date of 1958 Amendment
Pub. L. 85–859section 133(b) of Pub. L. 85–859section 4251 of this titleFor effective date of amendment made by , see , set out as a note under .