26 U.S.C. § 4252 — Definitions

Page 2947 TITLE 26—INTERNAL REVENUE CODE § 4252 § 4252. Definitions (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 com- munication with substantially all persons hav- ing telephone or radio telephone stations con- stituting a part of such local telephone sys- tem, and (2) any facility or service provided in con- nection with a service described in paragraph (1). The term ‘‘local telephone service’’ does not in- clude 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 trans- mission time of each individual communica- tion and (B) the charge is paid within the United States, and (2) a service which entitles the subscriber, upon payment of a periodic charge (deter- mined as a flat amount or upon the basis of total elapsed transmission time), to the privi- lege of an unlimited number of telephonic communications to or from all or a substan- tial 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 ac- cess from a teletypewriter or other data station to the teletypewriter exchange system of which such station is a part, and the privilege of inter- communication by such station with substan- tially all persons having teletypewriter or other data stations constituting a part of the same teletypewriter exchange system, to which the subscriber is entitled upon payment of a charge or charges (whether such charge or charges are determined as a flat periodic amount, on the basis of distance and elapsed transmission time, or in some other manner). The term ‘‘teletype- writer exchange service’’ does not include any service which is ‘‘local telephone service’’ as de- fined in subsection (a). (d) Private communication service For purposes of this subchapter, the term ‘‘pri- vate communication service’’ means— (1) the communication service furnished to a subscriber which entitles the subscriber— (A) to exclusive or priority use of any com- munication channel or groups of channels, or (B) to the use of an intercommunication system for the subscriber’s stations, regardless of whether such channel, groups of channels, or intercommunication system may be connected through switching with a service described in subsection (a), (b), or (c), (2) switching capacity, extension lines and stations, or other associated services which are provided in connection with, and are nec- essary or unique to the use of, channels or sys- tems described in paragraph (1), and (3) the channel mileage which connects a telephone station located outside a local tele- phone system area with a central office in such local telephone system, except that such term does not include any com- munication service unless a separate charge is made for such service. (Aug. 16, 1954, ch. 736, 68A Stat. 503; Pub. L. 85–859, title I, § 133(a), Sept. 2, 1958, 72 Stat. 1290; Pub. L. 87–508, § 4(a), June 28, 1962, 76 Stat. 115; Pub. L. 89–44, title III, § 302, June 21, 1965, 79 Stat. 145.) Editorial Notes CODIFICATION This subchapter, relating to the tax on communica- tions was repealed by Pub. L. 90–364, title I, § 105(b)(3), June 28, 1968, 82 Stat. 266, as amended by Pub. L. 91–172, title VII, § 702(b)(3), Dec. 30, 1969, 83 Stat. 660; Pub. L. 91–614, title II, § 201(b)(3), Dec. 31, 1970, 84 Stat. 1843, ef- fective 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 ren- dered 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 elimi- nating) provisions which had reduced the tax to zero after a specified date. AMENDMENTS 1965—Subsec. (a). Pub. L. 89–44 substituted definition of ‘‘local telephone service’’ for definition of ‘‘general telephone service’’. Subsec. (b). Pub. L. 89–44 replaced definition of ‘‘toll telephone service’’ as telephone or radio telephone mes- sage or conversation for which there is a toll charge paid within the United States with a definition which defined the term as a telephonic quality communica- tion carrying a varying toll charge depending upon dis- tance and elapsed transmission time and a service enti- tling the subscriber, upon payment of a periodic charge, to unlimited telephonic communication in an area outside the local telephone system area. Subsec. (c). Pub. L. 89–44 substituted definition of ‘‘teletypewriter exchange service’’ for definition of ‘‘telegraph service’’. Subsec. (d). Pub. L. 89–44 substituted definition of ‘‘private communication service’’ for definition of ‘‘teletypewriter exchange service’’. Subsecs. (e), (f). Pub. L. 89–44 struck out subsecs. (e) and (f) which defined wire mileage service and wire and equipment service. 1962—Subsec. (e)(1), (2). Pub. L. 87–508 limited wire mileage service to service not used in the conduct of a trade or business. 1958—Subsec. (a). Pub. L. 85–859 substituted definition of ‘‘general telephone service’’ for provisions which de- fined ‘‘local telephone service’’ as any telephone serv- ice not taxable as long distance telephone service; leased wire; teletypewriter or talking circuit special service; or wire and equipment service, and provided that amounts paid for the installation of instruments, wires, poles, switchboards, apparatus, and equipment shall not be considered amounts paid for service, and 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(b)(2)(A) of Pub. L. 89–44, set out as a note under section 4251 of this title. EFFECTIVE DATE OF 1962 AMENDMENT Pub. L. 87–508, § 4(c), June 28, 1962, 76 Stat. 115, pro- vided that: ‘‘The amendments made by subsections (a) and (b) [amending this section and section 4253 of this title] shall apply with respect to services furnished on or after January 1, 1963.’’ 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. § 4253. Exemptions (a) Certain coin-operated service Service paid for by inserting coins in coin-op- erated 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, ex- cept with respect to local telephone service, on any payment received from any person for serv- ices used in the collection of news for the public press, or a news ticker service furnishing a gen- eral news service similar to that of the public press, or radio broadcasting, or in the dissemi- nation 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 Amer- ican 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, set- ting 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 com- panies 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 car- rier, 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, ap- paratus, or equipment as is properly attrib- utable 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 pur- poses 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 organi- zations Under regulations prescribed by the Secretary, no tax shall be imposed under section 4251 on any amount paid by a nonprofit educational or- ganization for services or facilities furnished to such organization. For purposes of this sub- section, the term ‘‘nonprofit educational organi- zation’’ means an educational organization de- scribed in section 170(b)(1)(A)(ii) which is ex-