COMMUNICATIONS TAX.

SEC. 133. COMMUNICATIONS TAX. (a) In General.—Subchapter B of chapter 33 (communications taxes) is amended to read as follows: “Subchapter B— Communications “Sec. 4251. Imposition of tax. “Sec. 4252. Definitions. “Sec. 4253. Exemptions. “Sec. 4254. Computation of tax. “SEC. 4251. IMPOSITION OF TAX.“There is hereby imposed on amounts paid for the communication services enumerated in the following table a tax equal to the percent of the amount so paid as is specified in such table: “Taxable service Rate of tax Percent General telephone service 10 Toll telephone service 10 Telegraph service 10 Teletypewriter exchange service 10 Wire mileage service 10 Wire and equipment service service 8 The taxes imposed by this section shall be paid by the person paying for the services. 72 Stat. 1290 “SEC. 4252. DEFINITIONS. “(a) General Telephone Service.— For purposes of this subchapter, the term ‘general telephone service’ means any telephone or radio telephone service furnished in connection with any fixed or mobile telephone or radio telephone station which may be connected (directly or indirectly) to an exchange operated by a person engaged in the business of furnishing communication service, if by means of such connection communication may be established with any other fixed or mobile telephone or radio telephone station. Without limiting the preceding sentence, any service described therein shall be treated as including the use of— “(1) any private branch exchange (and any fixed or mobile telephone or radio telephone station connected, directly or indirectly, with such an exchange), and “(2) any tie line or extension line. The term ‘general telephone service’ does not include any service which is toll telephone service or wire and equipment service. “(b) Toll Telephone Service.—For purposes of this subchapter, the term ‘toll telephone service’ means a telephone or radio telephone message or conversation for which (1) there is a toll charge, and (2) the charge is paid within the United States. “(c) Telegraph Service.—For purposes of this subchapter, the term ‘telegraph service’ means a telegram, cable, or radio dispatch or message for which the charge is paid within the United States. “(d) Teletypewriter Exchange Service.—For purposes of this subchapter, the term ‘teletypewriter exchange service’ means any service where a teletypewriter (or similar device) may be connected (directly or indirectly) to an exchange operated by a person engaged in the business of furnishing communication service, if by means of such connection communication may be established with any other teletype-writer (or similar device). “(e) Wire Mileage Service.—For purposes of this subchapter, the term ‘wire mileage service’ means— “(1) any telephone or radio telephone service, and “(2) any other wire or radio circuit service, not included in any other subsection of this section; except that such term does not include service used exclusively in furnishing wire and equipment service. “(f) Wire and Equipment Service.—For purposes of this subchapter, the term ‘wire and equipment service’ includes stock quotation and information services, burglar alarm or fire alarm service, and all other similar services (whether or not oral transmission is involved). Such term does not include teletypewriter exchange service. “SEC. 4253. EXEMPTIONS. “(a) Certain Coin-Operated Service.—Services 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 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; 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 general 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 72 Stat. 1291the 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 services is billed in writing to such person. “(c) Certain 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 or his delegate may by regulations prescribe, is furnished to the person receiving such payment. “(e) For Items Otherwise Taxed.—Only one payment of tax under section 4251 shall be required with respect to the tax on toll telephone service, telegraph service, or teletypewriter exchange service, notwithstanding the lines or stations of one or more persons are used in furnishing such service. “(f) Special Wire Service in Company Business.—No tax shall be imposed under section 4251 on the amount paid for so much of any wire mileage service or wire and equipment service as is used in the conduct, by a common carrier or a telephone or telegraph company or radio broadcasting station or network, 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) Terminal Facilities in Case of Wire Mileage Service.—No tax shall be imposed under section 4251 on so much of any amount paid for wire mileage service as is paid for, and properly attributable to, the use of any sending or receiving set or device which is station terminal equipment. “(i) Certain Interior Communication Systems.—No tax shall be imposed under section 4251 on any amount paid for wire mileage service or wire and equipment service, if such service is rendered through the use of an interior communication system. For purposes of the preceding sentence, the term ‘interior communication system’ means any system— “(1) no part of which is situated off the premises of the subscriber, and which may not be connected (directly or indirectly) with any communication system any part of which is situated off the premises of the subscriber, or “(2) which is situated exclusively in a vehicle of the subscriber. “SEC. 4254. COMPUTATION OF TAX. “(a) General Rule.—If a bill is rendered the taxpayer for general telephone service, toll telephone service, or telegraph 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. 72 Stat. 1292 “(b) Where Payment Is Made for Toll. Telephone Service or Telegraph Service in Coin-Operated Telephones.—If the tax imposed by section 4251 with respect to toll telephone service or telegraph 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.” (b) Effective Date.— (1) Subject to the provisions of paragraph (2), the amendment made by subsection (a) shall apply with respect to amounts paid on or after the effective date prescribed in section 1 (c) of this Act for services rendered on or after such date. (2) The amendment made by subsection (a) shall not apply with respect to amounts paid pursuant to bills rendered before the effective date prescribed in section 1 (c) of this Act. In the case of amounts paid pursuant to bills rendered on or after such date for services for which no previous bill was rendered, such amendments 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 1954 in effect at the time such services were rendered shall apply to the amounts paid for such services.