Final rules 1
(a) 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.
Amended 1958, 1965
- 1965 Pub. L. 89-44 Pub. L. 89–44 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”.
- 1958 Pub. L. 85-859 Pub. L. 85–859 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”.
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(b) 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.
Amended 1958, 1965
- 1965 Pub. L. 89-44 Pub. L. 89–44 substituted “local telephone service” for “general telephone service” and “such service” for “such services”.
- 1958 Pub. L. 85-859 Pub. L. 85–859 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”.
Cases: Abbott, Proctor & Paine v. United States, 344 F.2d 333 (Ct. Cl. 1965)
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(c) 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.
Amended 1958, 1965
- 1965 Pub. L. 89-44 Pub. L. 89–44 substituted “International, etc., organizations” for “Certain organizations” in heading.
- 1958 Pub. L. 85-859 Pub. L. 85–859 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 August 22, 1864”.
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(d) 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.
Amended 1958, 1965, 1976
- 1976 Pub. L. 94-455 Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary”.
- 1965 Pub. L. 89-44 Pub. L. 89–44 reenacted subsec. (d) without change.
- 1958 Pub. L. 85-859 Pub. L. 85–859 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”.
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(e) 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.
Amended 1958, 1965
- 1965 Pub. L. 89-44 Pub. L. 89–44 substituted “any service” for “toll telephone service, telegraph service, or teletypewriter exchange service”.
- 1958 Pub. L. 85-859 Pub. L. 85–859 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”.
(f) 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.
Amended 1958, 1959, 1965
- 1965 Pub. L. 89-44 Pub. L. 89–44 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.
- 1959 Pub. L. 86-344 Pub. L. 86–344 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).
- 1958 Pub. L. 85-859 Pub. L. 85–859 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”.
Cases: Comdata Network v. United States, 21 Cl. Ct. 128 (Ct. Cl. 1990); Trans National Travel v. United States, 5 Cl. Ct. 648 (Ct. Cl. 1984)
(g) 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.
Amended 1958, 1965
- 1965 Pub. L. 89-44 Pub. L. 89–44 reenacted subsec. (g) without change.
- 1958 Pub. L. 85-859 Pub. L. 85–859 added subsecs. (g) to (i).
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(h) 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).
Amended 1958, 1965, 1966, 1969
- 1969 Pub. L. 91-172 Pub. L. 91–172 substituted “section 170(b)(1)(A)(iii)” for “section 503(b)(5)”.
- 1966 Pub. L. 89-368 Pub. L. 89–368 added subsec. (h).
- 1965 Pub. L. 89-44 Pub. L. 89–44 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.
- 1958 Pub. L. 85-859 Pub. L. 85–859 added subsecs. (g) to (i).
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(i) 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.
Amended 1958, 1965, 1976
- 1976 Pub. L. 94-455 Pub. L. 94–455, § 1904(a)(6), added subsecs. (i) and (j).
- 1965 Pub. L. 89-44 Pub. L. 89–44 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.
- 1958 Pub. L. 85-859 Pub. L. 85–859 added subsecs. (g) to (i).
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(j) 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.
Amended 1962, 1965, 1976
- 1976 Pub. L. 94-455 Pub. L. 94–455, § 1904(a)(6), added subsecs. (i) and (j).
- 1965 Pub. L. 89-44 Pub. L. 89–44 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.
- 1962 Pub. L. 87-508 Pub. L. 87–508 added subsec. (j).
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(k) 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.
Amended 1990, 2006
- 2006 Pub. L. 109-280 Pub. L. 109–280, § 1207(c)(1), added subsec. (k). Former subsec. (k) redesignated (l). See Codification note above.
- 1990 Pub. L. 101-508 Pub. L. 101–508 added subsec. (k).
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(l) Filing of exemption certificates
Amended 2006
- 2006 Pub. L. 109-280 Pub. L. 109–280, § 1207(c)(1), redesignated subsec. (k) as (l). See Codification note above.
(1) 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.
Amended 2006
- 2006 Pub. L. 109-280 Pub. L. 109–280, § 1207(c)(2), substituted “(j), or (k)” for “or (j)”. See Codification note above.
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(2) Duration of certificate Any statement provided under paragraph (1) shall remain in effect until—
(A) the provider of communications services has actual knowledge that the information provided in such statement is false, or
(B) such provider is notified by the Secretary that the provider of the statement is no longer entitled to an exemption described in paragraph (1).
If any information provided in such statement is no longer accurate, the person providing such statement shall inform the provider of communications services within 30 days of any change of information.