
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 26USC4253]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                 Subtitle D--Miscellaneous Excise Taxes
 
                   CHAPTER 33--FACILITIES AND SERVICES
 
                      Subchapter B--Communications
 
Sec. 4253. Exemptions


(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.

(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.

(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.

(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.

(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.

(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.

(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.

(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).

(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.

(j) Exception 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.

(k) Filing of exemption certificates

                           (1) In general

        In order to claim an exemption under subsection (c), (h), (i), 
    or (j), 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.

                     (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.

(Aug. 16, 1954, ch. 736, 68A Stat. 504; Pub. L. 85-859, title I, 
Sec. 133(a), Sept. 2, 1958, 72 Stat. 1290; Pub. L. 86-344, Sec. 4(a), 
Sept. 21, 1959, 73 Stat. 619; Pub. L. 87-508, Sec. 4(b), June 28, 1962, 
76 Stat. 115; Pub. L. 89-44, title III, Sec. 302, June 21, 1965, 79 
Stat. 146; Pub. L. 89-368, title II, Sec. 202(b), Mar. 15, 1966, 80 
Stat. 66; Pub. L. 91-172, title I, Sec. 101(j)(27), Dec. 30, 1969, 83 
Stat. 529; Pub. L. 94-455, title XIX, Secs. 1904(a)(6), 1906(b)(13)(A), 
Oct. 4, 1976, 90 Stat. 1811, 1834; Pub. L. 101-508, title XI, 
Sec. 11217(c)(1), Nov. 5, 1990, 104 Stat. 1388-438.)

                                 Repeal

        This subchapter, relating to the tax on communications, was 
    repealed by Pub. L. 90-364, title I, Sec. 105(b)(3), June 28, 1968, 
    82 Stat. 266, as amended by Pub. L. 91-172, title VII, 
    Sec. 702(b)(3), Dec. 30, 1969, 83 Stat. 660; Pub. L. 91-614, title 
    II, Sec. 201(b)(3), Dec. 31, 1970, 84 Stat. 1843, effective with 
    respect to amounts paid pursuant to bills first rendered on or after 
    Jan. 1, 1982. In the case of communications services rendered before 
    Nov. 1, 1981, for which a bill has not been rendered before Jan. 1, 
    1982, a bill shall be treated as having been first rendered on Dec. 
    31, 1981. Repeal of this subchapter was not executed in view of the 
    amendments to section 4251 of this title by Pub. L. 96-499, Pub. L. 
    97-34, Pub. L. 97-248, Pub. L. 98-369, Pub. L. 99-514, Pub. L. 100-
    203, and Pub. L. 101-508, extending the date in (and finally 
    eliminating) provisions which had reduced the tax to zero after a 
    specified date.


                               Amendments

    1990--Subsec. (k). Pub. L. 101-508 added subsec. (k).
    1976--Subsec. (d). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck out 
``or his delegate'' after ``Secretary''.
    Subsecs. (i), (j). Pub. L. 94-455, Sec. 1904(a)(6), added subsecs. 
(i) and (j).
    1969--Subsec. (h). Pub. L. 91-172 substituted ``section 
170(b)(1)(A)(iii)'' for ``section 503(b)(5)''.
    1966--Subsec. (h). Pub. L. 89-368 added subsec. (h).
    1965--Subsec. (a). 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''.
    Subsec. (b). Pub. L. 89-44 substituted ``local telephone service'' 
for ``general telephone service'' and ``such service'' for ``such 
services''.
    Subsec. (c). Pub. L. 89-44 substituted ``International, etc., 
organizations'' for ``Certain organizations'' in heading.
    Subsec. (d). Pub. L. 89-44 reenacted subsec. (d) without change.
    Subsec. (e). Pub. L. 89-44 substituted ``any service'' for ``toll 
telephone service, telegraph service, or teletypewriter exchange 
service''.
    Subsec. (f). 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.
    Subsec. (g). Pub. L. 89-44 reenacted subsec. (g) without change.
    Subsecs. (h) to (j). 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--Subsec. (j). Pub. L. 87-508 added subsec. (j).
    1959--Subsec. (f). 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--Subsec. (a). 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''.
    Subsec. (b). 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''.
    Subsec. (c). 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''.
    Subsec. (d). 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''.
    Subsec. (e). 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''.
    Subsec. (f). 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''.
    Subsecs. (g) to (i). Pub. L. 85-859 added subsecs. (g) to (i).


                    Effective Date of 1990 Amendment

    Section 11217(c)(2) of Pub. L. 101-508 provided that:
    ``(A) In general.--The amendment made by paragraph (1) [amending 
this section] shall apply to any claim for exemption made after the date 
of the enactment of this Act [Nov. 5, 1990].
    ``(B) Duration of existing certificates.--Any annual certificate of 
exemption effective on the date of the enactment of this Act [Nov. 5, 
1990] shall remain effective until the end of the annual period.''


                    Effective Date of 1976 Amendment

    Amendment by section 1904(a)(6) of Pub. L. 94-455 effective on first 
day of first month which begins more than 90 days after Oct. 4, 1976, 
see section 1904(d) of Pub. L. 94-455, set out as a note under section 
4041 of this title.


                    Effective Date of 1969 Amendment

    Amendment by Pub. L. 91-172 effective Jan. 1, 1970, see section 
101(k)(1) of Pub. L. 91-172, set out as an Effective Date note under 
section 4940 of this title.


                    Effective Date of 1966 Amendment

    Amendment by Pub. L. 89-368 applicable to amounts paid pursuant to 
bills first rendered on or after April 1, 1966, 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

    Amendment by Pub. L. 89-44 applicable to amounts paid pursuant to 
bills rendered on or after January 1, 1966, for services rendered on or 
after such date, but, in the case of amounts paid pursuant to bills 
rendered after January 1, 1966, 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 section 701(b)(2)(A) of Pub. L. 89-44, set out as a note 
under section 4251 of this title.


                    Effective Date of 1962 Amendment

    Amendment by Pub. L. 87-508 applicable with respect to services 
furnished on or after Jan. 1, 1963, see section 4(c) of Pub. L. 87-508, 
set out as a note under section 4252 of this title.


                    Effective Date of 1959 Amendment

    Section 4(b) of Pub. L. 86-344, as amended by Pub. L. 99-514, 
Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
    ``(1) Subject to the provisions of paragraph (2), the amendment made 
by subsection (a) [amending this section] shall apply with respect to 
amounts paid on or after January 1, 1959, for services rendered on or 
after such date.
    ``(2) The amendment made by subsection (a) [amending this section] 
shall not apply with respect to amounts paid pursuant to bills rendered 
before January 1, 1959. In the case of amounts paid pursuant to bills 
rendered on or after such date for services for which no bill was 
rendered before such date, such amendment shall apply except with 
respect to such services as were rendered more than 2 months before such 
date. In the case of services rendered more than 2 months before such 
date, the provisions of subchapter B of chapter 33 of the Internal 
Revenue Code of 1986 [formerly I.R.C. 1954] in effect at the time such 
services were rendered shall apply to the amounts paid for such 
services.''


                    Effective Date of 1958 Amendment

    For effective date of amendment made by Pub. L. 85-859, see section 
133(b) of Pub. L. 85-859, set out as a note under section 4251 of this 
title.
