
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: 26USC4254]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                 Subtitle D--Miscellaneous Excise Taxes
 
                   CHAPTER 33--FACILITIES AND SERVICES
 
                      Subchapter B--Communications
 
Sec. 4254. Computation of tax


(a) General rule

    If a bill is rendered the taxpayer for local telephone service or 
toll telephone service--
        (1) the amount on which the tax with respect to such services 
    shall be based shall be the sum of all charges for such services 
    included in the bill; except that
        (2) if the person who renders the bill groups individual items 
    for purposes of rendering the bill and computing the tax, then (A) 
    the amount on which the tax with respect to each such group shall be 
    based shall be the sum of all items within that group, and (B) the 
    tax on the remaining items not included in any such group shall be 
    based on the charge for each item separately.

(b) Where payment is made for toll telephone service in coin-operated 
        telephones

    If the tax imposed by section 4251 with respect to toll telephone 
service is paid by inserting coins in coin-operated telephones, tax 
shall be computed to the nearest multiple of 5 cents, except that, where 
the tax is midway between multiples of 5 cents, the next higher multiple 
shall apply.

(c) Certain State and local taxes not included

    For purposes of this subchapter, in determining the amounts paid for 
communications services, there shall not be included the amount of any 
State or local tax imposed on the furnishing or sale of such services, 
if the amount of such tax is separately stated in the bill.

(Aug. 16, 1954, ch. 736, 68A Stat. 504; Pub. L. 85-859, title I, 
Sec. 133(a), Sept. 2, 1958, 72 Stat. 1291; Pub. L. 89-44, title III, 
Sec. 302, June 21, 1965, 79 Stat. 147; Pub. L. 95-172, Sec. 2(a), Nov. 
12, 1977, 91 Stat. 1358.)

                                 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    repealed by Pub.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

    1977--Subsec. (c). Pub. L. 95-172 added subsec. (c).
    1965--Subsec. (a). Pub. L. 89-44 substituted ``local telephone 
service or toll telephone service'' for ``general telephone service, 
toll telephone service, or telegraph service''.
    Subsec. (b). Pub. L. 89-44 substituted ``toll telephone service'' 
for ``toll telephone service or telegraph service'' in catchline and 
text.
    1958--Subsec. (a). Pub. L. 85-859 provided that if the person who 
renders the bill groups individual items for purposes of rendering the 
bill and computing the tax, then the amount on which the tax with 
respect to each group shall be based shall be the sum of all items 
within that group, and the tax on remaining items not included in any 
such group shall be based on the charge of each item separately.
    Subsec. (b). Pub. L. 85-859 substituted ``toll telephone service'' 
for ``long distance telephone service''.


                    Effective Date of 1977 Amendment

    Section 2(b) of Pub. L. 95-172 provided that: ``The amendment made 
by this section [amending this section] shall take effect only with 
respect to amounts paid pursuant to bills first rendered on or after the 
first day of the first month which begins more than 20 days after the 
date of the enactment of this Act [Nov. 12, 1977]. For purposes of the 
preceding sentence, in the case of communications services rendered more 
than 2 months before the effective date provided in the preceding 
sentence, no bill shall be treated as having been first rendered on or 
after such effective date.''


                    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 service 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 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.
