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26 U.S.C. § 4253 — Exemptions
Federal law — U.S. Code and appendices · legal_authorities
**(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 rec
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Source file: Laws/federal/codes/united-states-code/title-26/section-4253-exemptions--d3dc5f7e12.md
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Source location: Title 26, Chapter 33, § 4253; chapter-033-facilities-and-services.md
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**(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) 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.
**(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.
**(l) Filing of exemption certificates**
(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.
(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.
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Tax imposed**
(1) **In general** — There is hereby imposed on amounts paid for communications services a tax equal to the applicable percentage of amounts so paid.
(2) **Payment of tax** — The tax imposed by this section shall be paid by the person paying for such services.
**(b) Definitions** For purposes of subsection (a)—
(1) **Communications services** — The term “communications services” means—
(A) local telephone service;
(B) toll telephone service; and
(C) teletypewriter exchange service.
(2) **Applicable percentage** — The term “applicable percentage” means 3 percent.
**(c) Special rule** For purposes of subsections (a) and (b), in the case of communications services rendered before November 1 of a calendar year for which a bill has not been rendered before the close of such year, a bill shall be treated as having been first rendered on December 31 of such year.
**(d) Treatment of prepaid telephone cards**
(1) **In general** — For purposes of this subchapter, in the case of communications services acquired by means of a prepaid telephone card—
(A) the face amount of such card shall be treated as the amount paid for such communications services, and
(B) that amount shall be treated as paid when the card is transferred by any telecommunications carrier to any person who is not such a carrier.
(2) **Determination of face amount in absence of specified dollar amount** — In the case of any prepaid telephone card which entitles the user other than to a specified dollar amount of use, the face amount shall be determined under regulations prescribed by the Secretary.
(3) **Prepaid telephone card** — For purposes of this subsection, the term “prepaid telephone card” means any card or any other similar arrangement which permits its holder to
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 4251
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Tax-exempt foundations** There is hereby imposed on each private foundation which is exempt from taxation under section 501(a) for the taxable year, with respect to the carrying on of its activities, a tax equal to 1.39 percent of the net investment income of such foundation for the taxable year.
**(b) Taxable foundations** There is hereby imposed on each private foundation which is not exempt from taxation under section 501(a) for the taxable year, with respect to the carrying on of its activities, a tax equal to—
(1) the amount (if any) by which the sum of (A) the tax imposed under subsection (a) (computed as if such subsection applied to such private foundation for the taxable year), plus (B) the amount of the tax which would have been imposed under section 511 for the taxable year if such private foundation had been exempt from taxation under section 501(a), exceeds
(2) the tax imposed under subtitle A on such private foundation for the taxable year.
**(c) Net investment income defined**
(1) **In general** — For purposes of subsection (a), the net investment income is the amount by which (A) the sum of the gross investment income and the capital gain net income exceeds (B) the deductions allowed by paragraph (3). Except to the extent inconsistent with the provisions of this section, net investment income shall be determined under the principles of subtitle A.
(2) **Gross investment income** — For purposes of paragraph (1), the term “gross investment income” means the gross amount of income from interest, dividends, rents, payments with respect to securities loans (as defined in section 512(a)(5)), and royalties, but not including any such income to the extent included in computing the tax imposed by section 511. Such term shall also include income from s
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 4940
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Local telephone service** For purposes of this subchapter, the term “local telephone service” means—
(1) the access to a local telephone system, and the privilege of telephonic quality communication with substantially all persons having telephone or radio telephone stations constituting a part of such local telephone system, and
(2) any facility or service provided in connection with a service described in paragraph (1).
The term “local telephone service” does not include any service which is a “toll telephone service” or a “private communication service” as defined in subsections (b) and (d).
**(b) Toll telephone service** For purposes of this subchapter, the term “toll telephone service” means—
(1) a telephonic quality communication for which (A) there is a toll charge which varies in amount with the distance and elapsed transmission time of each individual communication and (B) the charge is paid within the United States, and
(2) a service which entitles the subscriber, upon payment of a periodic charge (determined as a flat amount or upon the basis of total elapsed transmission time), to the privilege of an unlimited number of telephonic communications to or from all or a substantial portion of the persons having telephone or radio telephone stations in a specified area which is outside the local telephone system area in which the station provided with this service is located.
**(c) Teletypewriter exchange service** For purposes of this subchapter, the term “teletypewriter exchange service” means the access from a teletypewriter or other data station to the teletypewriter exchange system of which such station is a part, and the privilege of intercommunication by such station with substantially all persons having teletypewriter or other data stations cons
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 4252
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Diesel fuel and special motor fuels**
(1) **Tax on diesel fuel and kerosene in certain cases**
(A) *In general* — There is hereby imposed a tax on any liquid other than gasoline (as defined in section 4083)—
(i) sold by any person to an owner, lessee, or other operator of a diesel-powered highway vehicle or a diesel-powered train for use as a fuel in such vehicle or train, or
(ii) used by any person as a fuel in a diesel-powered highway vehicle or a diesel-powered train unless there was a taxable sale of such fuel under clause (i).
(B) *Exemption for previously taxed fuel* — No tax shall be imposed by this paragraph on the sale or use of any liquid if tax was imposed on such liquid under section 4081 (other than such tax at the Leaking Underground Storage Tank Trust Fund financing rate) and the tax thereon was not credited or refunded.
(C) *Rate of tax*
(i) *In general* — Except as otherwise provided in this subparagraph, the rate of the tax imposed by this paragraph shall be the rate of tax specified in section 4081(a)(2)(A) on diesel fuel which is in effect at the time of such sale or use.
(ii) *Rate of tax on trains* — In the case of any sale for use, or use, of diesel fuel in a train, the rate of tax imposed by this paragraph shall be—
(I) 3.3 cents per gallon after December 31, 2004, and before July 1, 2005,
(II) 2.3 cents per gallon after June 30, 2005, and before January 1, 2007, and
(III) 0 after December 31, 2006.
(iii) *Rate of tax on certain buses*
(I) *In general* — Except as provided in subclause (II), in the case of fuel sold for use or used in a use described in section 6427(b)(1) (after the application of section 6427(b)(3)), the rate of tax imposed by this paragraph shall be 7.3 cents
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 4041
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Federal law — U.S. Code and appendices · legal_authorities
Page 2948
TITLE 26—INTERNAL REVENUE CODE
§ 4253
that amounts paid for services and facilities which are
exempted from other communication taxes by section
4253(b) should not be deemed to be within the definition
of local telephone service.
Subsec. (b). Pub. L. 85–859 substituted ‘‘toll telephone
service’’ for ‘‘long distance telephone service’’ and
struck out provisions which defined ‘‘long distance
telephone service’’ as a telephone or radio telephone
message or conversation for which the toll charge is
more than 24 cents.
Subsec. (c). Pub. L. 85–859 substituted ‘‘For purposes
of this subchapter, the term ‘telegraph service’ means
a telegram’’ for ‘‘As used in section 4251 the term ‘tele-
graph service’ means a telegraph’’.
Subsec. (d). Pub. L. 85–859 substituted provisions de-
fining ‘‘teletypewriter exchange service’’ for provisions
which defined ‘‘leased wire, teletypewriter or talking
circuit special service’’.
Subsec. (e). Pub. L. 85–859 substituted provisions de-
fining ‘‘wire mileage service’’ for provisions which de-
fined ‘‘wire and equipment service’’, which were cov-
ered by subsec. (f) of this section.
Subsec. (f). Pub. L. 85–859 added subsec. (f). Similar
provisions were formerly contained in subsec. (e) of
this section.
Statutory Notes and Related Subsidiaries
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, ap-
plicable except with respect to such services as were
rendered more than two months before such date, see
section 701
Source: Supplied 2024 U.S. Code historical extraction · 26 U.S.C. § 4253
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