Source: https://www.law.cornell.edu/uscode/text/26/4251
Timestamp: 2019-04-19 10:36:39+00:00

Document:
There is hereby imposed on amounts paid for communications services a tax equal to the applicable percentage of amounts so paid.
The tax imposed by this section shall be paid by the person paying for such services.
For purposes of subsections (a) and (b), in the case of communications services rendered before November 1 of a calendar year for which a bill has not been rendered before the close of such year, a bill shall be treated as having been first rendered on December 31 of such year.
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.
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.
For purposes of this subsection, the term “prepaid telephone card” means any card or any other similar arrangement which permits its holder to obtain communications services and pay for such services in advance.
This subchapter, relating to the tax on communications, was repealed by Pub.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, 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.
Pub. L. 96–499, title XI, § 1151, Dec. 5, 1980, 94 Stat. 2694; Pub. L. 97–34, title VIII, § 821, Aug. 13, 1981, 95 Stat. 351; Pub. L. 97–248, title II, § 282(a), Sept. 3, 1982, 96 Stat. 568; Pub. L. 98–369, div. A, title I, § 26, July 18, 1984, 98 Stat. 507; Pub. L. 99–514, title XVIII, § 1801(b), Oct. 22, 1986, 100 Stat. 2785; Pub. L. 100–203, title X, § 10501, Dec. 22, 1987, 101 Stat. 1330–438; Pub. L. 101–508, title XI, § 11217(a), Nov. 5, 1990, 104 Stat. 1388–437, amended this section, relating to the imposition of the tax on communications, extending the date in (and finally eliminating) provisions which had reduced the tax to zero after a specified date, without amending Pub. L. 90–364, title I, § 105(b)(3), June 28, 1968, 82 Stat. 266, which, as amended, had repealed this subchapter, effective with respect to amounts paid pursuant to bills first rendered on or after Jan. 1, 1982.
1998—Subsec. (d)(3). Pub. L. 105–206 substituted “any other similar arrangement” for “other similar arrangement”.
1997—Subsec. (d). Pub. L. 105–34 added subsec. (d).
1986—Subsec. (b)(2). Pub. L. 99–514 inserted “1985,” after “1984,” in table.
1984—Subsec. (b)(2). Pub. L. 98–369 substituted “During 1983, 1984, 1986, or 1987” for “During 1983, 1984, or 1985” in item relating to an applicable percentage of 3 and substituted “During 1988 or thereafter” for “During 1986 or thereafter” in item relating to an applicable percentage of 0.
Subsec. (b). Pub. L. 97–248 added subsec. (b) and struck out former subsec. (b) which provided that the tax imposed by former subsec. (a) would not apply to amounts paid pursuant to bills first rendered on or after January 1, 1985.
1981—Subsec. (a)(2). Pub. L. 97–34, § 821(a), substituted “During 1982, 1983, or 1984” for “During 1982” in table.
Subsec. (b). Pub. L. 97–34, § 821(b), extended termination date to Jan. 1, 1985, from Jan. 1, 1983.
1980—Subsec. (a)(2). Pub. L. 96–499, § 1151(a), substituted “During 1980 or 1981” for “During 1980” and “During 1982” for “During 1981” in table.
Subsec. (b). Pub. L. 96–499, § 1151(b), substituted “1983” for “1982”.
1970—Subsec. (a)(2). Pub. L. 91–614, § 201(b)(1), substituted provisions providing the rate of tax on amounts paid for communication services pursuant to bills first rendered before Jan. 1, 1973 is 10% of such amount, amounts paid pursuant to bills first rendered during 1973 is 9% of such amount, during 1974 is 8% of such amount, during 1975 is 7% of such amount, during 1976 is 6% of such amount, during 1977 is 5% of such amount, during 1978 is 4% of such amount, during 1979 is 3% of such amount, during 1980 is 2% of such amount, and during 1981 is 1% of such amount for provisions providing the rate of tax on amounts paid for communication services pursuant to bills first rendered before Jan. 1, 1971 is 10% of such amount, amounts paid pursuant to bills first rendered during 1971 is 5% of such amount, during 1972 is 3% of such amount, and during 1973 is 1% of such amount.
Subsec. (b). Pub. L. 91–614, § 201(b)(2), substituted “January 1, 1982” for “January 1, 1974”.
1969—Subsec. (a)(2). Pub. L. 91–172, § 702(b)(1), increased rate of tax on amounts paid for communication services from 5 to 10 percent during 1970, from 3 to 5 percent during 1971, from 1 to 3 percent during 1972, and imposed a 1 percent tax on amounts paid for communication services during 1973.
Subsec. (b). Pub. L. 91–172, § 702(b)(2), substituted “January 1, 1974” for “January 1, 1973”.
1968—Subsec. (a)(2). Pub. L. 90–364, § 105(b)(1), extended from April 30, 1968, through the end of 1969 the period for the imposition of the 10 percent rate, thereby increasing the rate from 1 percent to 10 percent for the period May 1, 1968, through the end of 1968 and from 0 percent to 10 percent for 1969, and imposed a rate of 5 percent during 1970, a rate of 3 percent during 1971, and a rate of 1 percent during 1972.
Pub. L. 90–285 substituted “April 30, 1968” and “May 1, 1968” for “March 31, 1968” and “April 1, 1968” respectively.
Subsec. (b). Pub. L. 90–364, § 105(b)(2), substituted “1973” for “1969”.
Subsec. (c). Pub. L. 90–364, § 105(b)(2), extended provisions calling for treatment of bills not rendered before the end of a year for service rendered before November 1 of that year as having been first rendered on December 31 of that year so as to include years subsequent to 1968 and struck out special provision for the application of subsec. (a) in the case of communication services rendered before March 1, 1968, for which a bill was not rendered before May 1, 1968.
Pub. L. 90–285 substituted “March 1, 1968,” for “February 1, 1968”, “May 1, 1968” for “April 1, 1968”, “April 30, 1968” for “March 31, 1968”, and “February 29, 1968” for “January 31, 1968”.
1966—Subsec. (a)(2). Pub. L. 89–368, § 202(a)(1), increased to 10 percent the schedule of rates for tax imposed for the period up to April 1, 1968, and authorized a reduction to 1 percent for the period after March 31, 1968, and before January 1, 1969.
Subsec. (c). Pub. L. 89–368, § 202(a)(2), conformed subsection to rate reduction schedule alterations by providing that, in the case of communications services rendered before February 1, 1968, for which a bill has not been rendered before April 1, 1968, the bill shall be treated as having been first rendered on March 31, 1968, and, in the case of services rendered after January 31, 1968, and before November 1, 1968, for which a bill has not been rendered before January 1, 1969, the bill shall be treated as having first been rendered on December 31, 1968.
1965—Subsec. (a). Pub. L. 89–44, § 302, substituted local telephone service, toll telephone service, and teletypewriter exchange service, for general telephone service, toll telephone service, telegraph service, teletypewriter exchange service, wire mileage service, and wire and equipment service as the taxed services and reduced the rate of tax to 3 percent during 1966, 2 percent during 1967, and 1 percent during 1968.
Subsec. (b). Pub. L. 89–44, § 302, added subsec. (b). Pub. L. 89–44, § 701(b)(2)(B), repealed former subsec. (b), as in effect June 30, 1965, effective on and after July 1, 1965. Such repealed provision had called for termination of the tax on general telephone service as of July 1, 1965.
Subsec. (c). Pub. L. 89–44, § 302, added subsec. (c).
1964—Subsec. (b)(2). Pub. L. 88–348 substituted “July 1, 1965” for “July 1, 1964” in two places.
1963—Subsec. (b)(2). Pub. L. 88–52 substituted “July 1, 1964” for “July 1, 1963” in two places.
1962—Subsec. (b)(2). Pub. L. 87–508 substituted “July 1, 1963” for “July 1, 1962” in two places.
1961—Subsec. (b)(2). Pub. L. 87–72 substituted “July 1, 1962” for “July 1, 1961” in two places.
1960—Subsec. (b)(2). Pub. L. 86–564 substituted “July 1, 1961” for “July 1, 1960” in two places.
1959—Pub. L. 86–75 designated former provisions as subsec. (a) and added subsec. (b).
1958—Pub. L. 85–859 redesignated “local telephone service” as “general telephone service”, “long distance telephone service” as “toll telephone service” and “leased wire, teletypewriter or talking circuit special service” as “teletypewriter exchange service” and “wire mileage service”.
Amendment by Pub. L. 90–364 effective Apr. 30, 1968, see section 105(c) of Pub. L. 90–364, set out as a note under section 6412 of this title.
Amendment by Pub. L. 90–285 effective Mar. 31, 1968, see section 1(b) of Pub. L. 90–285, set out as a note under section 6412 of this title.
Subject to the provisions of paragraph (2), the amendment made by subsection (a) [amending this section and sections 4252 to 4254 of this title] 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.

References: § 105
 § 702
 § 201
 § 1151
 § 821
 § 282
 § 26
 § 1801
 § 10501
 § 11217
 § 105
 § 821
 § 821
 § 1151
 § 1151
 § 201
 § 201
 § 702
 § 702
 § 105
 § 105
 § 105
 § 202
 § 202
 § 302
 § 302
 § 701
 § 302