Pub. L. 90-450, tit. III, sec. 302

Sec. 302. Subsection (a) of section 114 of the District of Columbia Sales Tax Act (D.C. Code, sec. 47–2601, par 14(a)) is amended by adding at the end t hereof the following new paragraph: “(7) (A) The sale of or charges to subscribers for local telephone service. The inclusion of such sales and charges in the definition of the terms ‘retail sale and ‘sale at retail’ shall not authorize any tax to be imposed under this title 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. “(B) The term ‘local telephone service’ means— “(i) 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 “(ii) any facility or service provided in connection with a service described in clause (i) of tins subparagraph. The term ‘local telephone service’ does not include any service which is a ‘toll telephone service’ or a ‘private communication service’ as defined in subparagraphs (C) and (D). “(C) The term ‘toll telephone service’ means— “(i) a telephonic quality communication for which (a) there is a toll charge which varies in amount with the distance and elapsed 82 Stat. 614transmission time of each individual communication and (b) the charge is paid within the United States, and “(ii) 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. “(D) The term ‘private communication service’ means— “(i) the communication service furnished to a subscriber which entitles the subscriber— “(a) to exclusive or priority use of any communication 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 inter-communication system may be connected through switching with a service described in subparagraph (B) or (C), “(ii) switching capacity, extension lines and stations, or other associated services which are provided in connection with, and are necessary or unique to the use of, channels, or systems described in clause (i) of this subparagraph, and “(iii) the channel mileage which connects a telephone station located outside a local telephone system area with a central office in such local telephone system, except that such term does not include any communication service unless a separate charge is made for such service.”