Internal Revenue Code:Sec. 4254. Computation of tax

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Location in Internal Revenue Code

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

Statute

    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.
 

Sources

    (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.)
 

Amendment of Section

                                   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      repealed by Pub.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.
 

Miscellaneous

                                 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.