APPLICATION OF COMMUNICATIONS TAX TO PREPAID TELEPHONE CARDS.

SEC. 1034. APPLICATION OF COMMUNICATIONS TAX TO PREPAID TELEPHONE CARDS. (a) In General.—Section 4251 is amended by adding at the end the following new subsection: “(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 other similar arrangement which permits its holder to obtain communications services and pay for such services in advance.”. (b) Effective Date.—The amendments made by this section shall apply to amounts paid in calendar months beginning more than 60 days after the date of the enactment of this Act.