26 U.S.C. § 4251 — Imposition of tax

Page 2944 TITLE 26—INTERNAL REVENUE CODE [§§ 4241 to 4243 Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF REPEAL Repeal applicable with respect to admissions, serv- ices, or uses after noon, December 31, 1965, see section 701(b)(1) of Pub. L. 89–44, set out as an Effective Date of 1965 Amendment note under section 4291 of this title. [§§ 4241 to 4243. Repealed. Pub. L. 89–44, title III, § 301, June 21, 1965, 79 Stat. 145] Section 4241, acts Aug. 16, 1954, ch. 736, 68A Stat. 501; Sept. 2, 1958, Pub. L. 85–859, title I, § 132(a), 72 Stat. 1288; Sept. 21, 1959, Pub. L. 86–344, § 3(b), 73 Stat. 618, imposed a tax on dues or membership fees, initiation, fees, and life memberships in social, athletic, or sporting clubs or organizations. Section 4242, act Aug. 16, 1954, ch. 736, 68A Stat. 501, defined dues and initiation fees as used in section 4241. Section 4243, acts Aug. 16, 1954, ch. 736, 68A Stat. 502; Sept. 2, 1958, Pub. L. 85–859, title I, § 132(b), 72 Stat. 1288; Sept. 21, 1959, Pub. L. 86–344, § 3(a), 73 Stat. 618, granted exemptions to fraternal organizations, payments for capital improvements, and nonprofit swimming or skating facilities. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF REPEAL Repeal applicable with respect to dues and member- ship fees attributable to periods beginning on or after January 1, 1966, initiation fees and amounts paid for life memberships attributable to memberships begin- ning on or after January 1, 1966, initiation fees paid on or after July 1, 1965, to a new club or organization first making its facilities available to members on or after such a date, and, in the case of amounts described in section 4243(b) of this title, 3-year periods beginning on or after January 1, 1966, see section 701(b)(1) of Pub. L. 89–44, set out as an Effective Date of 1965 Amendment note under section 4291 of this title. Subchapter B—Communications Sec. 4251. Imposition of tax. 4252. Definitions. 4253. Exemptions. 4254. Computation of tax. REPEAL This subchapter, relating to the tax on com- munication, was repealed by Pub.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, effec- tive 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 exe- cuted 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 speci- fied date. § 4251. Imposition of tax (a) Tax imposed (1) In general There is hereby imposed on amounts paid for communications services a tax equal to the applicable percentage of amounts so paid. (2) Payment of tax The tax imposed by this section shall be paid by the person paying for such services. (b) Definitions For purposes of subsection (a)— (1) Communications services The term ‘‘communications services’’ means— (A) local telephone service; (B) toll telephone service; and (C) teletypewriter exchange service. (2) Applicable percentage The term ‘‘applicable percentage’’ means 3 percent. (c) Special rule 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. (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 commu- nications services, and (B) that amount shall be treated as paid when the card is transferred by any tele- communications 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 speci- fied dollar amount of use, the face amount shall be determined under regulations pre- scribed by the Secretary. (3) Prepaid telephone card 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. (Aug. 16, 1954, ch. 736, 68A Stat. 503; Pub. L. 85–859, title I, § 133(a), Sept. 2, 1958, 72 Stat. 1289; Pub. L. 86–75, § 5, June 30, 1959, 73 Stat. 158; Pub. L. 86–564, title II, § 202(a)(2), June 30, 1960, 74 Stat. 290; Pub. L. 87–72, § 3(a)(2), June 30, 1961, 75 Stat. 193; Pub. L. 87–508, § 3(a)(2), June 28, 1962, 76 Stat. 114; Pub. L. 88–52, § 3(a)(2), June 29, 1963, 77 Stat. 72; Pub. L. 88–348, § 2(a)(2), June 30, 1964, 78 Stat. 237; Pub. L. 89–44, title III, § 302, title VII, § 701(b)(2)(B), June 21, 1965, 79 Stat. 145, 156; Pub. L. 89–368, title II, § 202(a), Mar. 15, 1966, 80 Stat. 66; Pub. L. 90–285, § 1(a)(3), Apr. 12, 1968, 82 Stat. 92; Pub. L. 90–364, title I, § 105(b)(1), (2), June 28, 1968, 82 Stat. 265; Pub. L. 91–172, title VII, § 702(b)(1), (2), Dec. 30, 1969, 83 Stat. 660; Pub. L. 91–614, title II, § 201(b)(1), (2), Dec. 31, 1970, 84 Stat. 1843; 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, Page 2945 TITLE 26—INTERNAL REVENUE CODE § 4251 § 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; Pub. L. 105–34, title X, § 1034(a), Aug. 5, 1997, 111 Stat. 937; Pub. L. 105–206, title VI, § 6010(i), July 22, 1998, 112 Stat. 815.) Editorial Notes CODIFICATION This subchapter, relating to the tax on communica- tions, 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, ef- fective 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 ren- dered 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 com- munications, extending the date in (and finally elimi- nating) 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. AMENDMENTS 1998—Subsec. (d)(3). Pub. L. 105–206 substituted ‘‘any other similar arrangement’’ for ‘‘other similar arrange- ment’’. 1997—Subsec. (d). Pub. L. 105–34 added subsec. (d). 1990—Subsec. (b)(2). Pub. L. 101–508 substituted ‘‘per- cent.’’ for ‘‘percent; except that, with respect to amounts paid pursuant to bills first rendered after 1990, the applicable percentage shall be zero.’’ 1987—Subsec. (b)(2). Pub. L. 100–203 amended par. (2) generally. Prior to amendment, par. (2) read as follows: ‘‘The term ‘applicable percentage’ means— ‘‘With respect to amount paid pursuant to bills first rendered: The percentage is: During 1983, 1984, 1985, 1986, or 1987 ........ 3 During 1988 or thereafter ....................... 0.’’ 1986—Subsec. (b)(2). Pub. L. 99–514 inserted ‘‘1985,’’ after ‘‘1984,’’ in table. 1984—Subsec. (b)(2). Pub. L. 98–369 substituted ‘‘Dur- ing 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. 1982—Subsec. (a). Pub. L. 97–248 added subsec. (a) and struck out former subsec. (a) which provided that there was a tax on communication services specified as local telephone service, toll telephone service, and teletype- writer exchange service, directed that the tax was to be paid by the person paying for such services, and des- ignated the tax as the percentage of the amount paid for the services as set out in the following table: ‘‘Amounts paid pursuant to bills first rendered— Percent— Before January 1, 1973 ........................................ 10 During 1973 ......................................................... 9 During 1974 ......................................................... 8 ‘‘Amounts paid pursuant to bills first rendered— Percent— During 1975 ......................................................... 7 During 1976 ......................................................... 6 During 1977 ......................................................... 5 During 1978 ......................................................... 4 During 1979 ......................................................... 3 During 1980 or 1981 ............................................. 2 During 1982, 1983, or 1984 .................................... 1’’ 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 termi- nation date to Jan. 1, 1985, from Jan. 1, 1983. 1980—Subsec. (a)(2). Pub. L. 96–499, § 1151(a), sub- stituted ‘‘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), sub- stituted 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 pro- viding the rate of tax on amounts paid for communica- tion 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), in- creased 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 commu- nication 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), ex- tended 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’’ respec- tively. Subsec. (b). Pub. L. 90–364, § 105(b)(2), substituted ‘‘1973’’ for ‘‘1969’’. Subsec. (c). Pub. L. 90–364, § 105(b)(2), extended provi- sions 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 Decem- ber 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 ‘‘Feb- ruary 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), in- creased to 10 percent the schedule of rates for tax im- posed 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. Page 2946 TITLE 26—INTERNAL REVENUE CODE § 4251 Subsec. (c). Pub. L. 89–368, § 202(a)(2), conformed sub- section to rate reduction schedule alterations by pro- viding 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 teletype- writer 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’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1998 AMENDMENT Amendment by Pub. L. 105–206 effective, except as otherwise provided, as if included in the provisions of the Taxpayer Relief Act of 1997, Pub. L. 105–34, to which such amendment relates, see section 6024 of Pub. L. 105–206, set out as a note under section 1 of this title. EFFECTIVE DATE OF 1997 AMENDMENT Pub. L. 105–34, title X, § 1034(b), Aug. 5, 1997, 111 Stat. 937, provided that: ‘‘The amendments made by this sec- tion [amending this section] shall apply to amounts paid in calendar months beginning more than 60 days after the date of the enactment of this Act [Aug. 5, 1997].’’ EFFECTIVE DATE OF 1986 AMENDMENT Amendment by Pub. L. 99–514 effective, except as oth- erwise provided, as if included in the provisions of the Tax Reform Act of 1984, Pub. L. 98–369, div. A, to which such amendment relates, see section 1881 of Pub. L. 99–514, set out as a note under section 48 of this title. EFFECTIVE DATE OF 1982 AMENDMENT Pub. L. 97–248, title II, § 282(b), Sept. 3, 1982, 96 Stat. 568, provided that: ‘‘The amendment made by sub- section (a) [amending this section] shall apply with re- spect to amounts paid for communications services pursuant to bills first rendered after December 31, 1982.’’ EFFECTIVE DATE OF 1968 AMENDMENTS 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. EFFECTIVE DATE OF 1966 AMENDMENT Pub. L. 89–368, title II, § 202(c), Mar. 15, 1966, 80 Stat. 66, provided that: ‘‘The amendments made by sub- sections (a) [amending this section] and (b) [amending section 4253 of this title] shall apply to amounts paid pursuant to bills first rendered on or after April 1, 1966, for services rendered on or after such date. In the case of amounts paid pursuant to bills rendered on or after such date for services which were rendered before such date and 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 Code in effect at the time such services were rendered, subject to the provision of sec- tion 701(b)(2) of the Excise Tax Reduction Act of 1965 [see Effective Date of 1965 Amendment note below], shall apply to the amounts paid for such services.’’ EFFECTIVE DATE OF 1965 AMENDMENT Pub. L. 89–44, title VII, § 701(b)(2)(A), June 21, 1965, 79 Stat. 156, provided that: ‘‘The amendments made by section 302 [amending this section and sections 4252, 4253, and 4254 of this title] (relating to communication services) shall apply to amounts paid pursuant to bills rendered on or after January 1, 1966, for services ren- dered on or after such date. In the case of amounts paid pursuant to bills rendered on or after January 1, 1966, for services which were rendered before such date and for which no previous bill was rendered, such amend- ments 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 be- fore such date, the provisions of subchapter B of chap- ter 33 of the Code in effect at the time such services were rendered shall apply to the amounts paid for such services.’’ EFFECTIVE DATE OF 1958 AMENDMENT Pub. L. 85–859, title I, § 133(b), Sept. 2, 1958, 72 Stat. 1292, as amended by Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that: ‘‘(1) Subject to the provisions of paragraph (2), the amendment made by subsection (a) [amending this sec- tion 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. ‘‘(2) The amendment made by subsection (a) [amend- ing this section and sections 4252 to 4254 of this title] 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 1986 [for- merly I.R.C. 1954] in effect at the time such services were rendered shall apply to the amounts paid for such services.’’ PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1989 For provisions directing that if any amendments made by subtitle A or subtitle C of title XI [§§ 1101–1147 and 1171–1177] or title XVIII [§§ 1800–1899A] of Pub. L. 99–514 require an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after Jan. 1, 1989, see section 1140 of Pub. L. 99–514, as amended, set out as a note under section 401 of this title. Page 2947 TITLE 26—INTERNAL REVENUE CODE § 4252 § 4252. Definitions (a) Local telephone service For purposes of this subchapter, the term ‘‘local telephone service’’ means— (1) the access to a local telephone system, and the privilege of telephonic quality com- munication with substantially all persons hav- ing telephone or radio telephone stations con- stituting a part of such local telephone sys- tem, and (2) any facility or service provided in con- nection with a service described in paragraph (1). The term ‘‘local telephone service’’ does not in- clude any service which is a ‘‘toll telephone service’’ or a ‘‘private communication service’’ as defined in subsections (b) and (d). (b) Toll telephone service For purposes of this subchapter, the term ‘‘toll telephone service’’ means— (1) a telephonic quality communication for which (A) there is a toll charge which varies in amount with the distance and elapsed trans- mission time of each individual communica- tion and (B) the charge is paid within the United States, and (2) a service which entitles the subscriber, upon payment of a periodic charge (deter- mined as a flat amount or upon the basis of total elapsed transmission time), to the privi- lege of an unlimited number of telephonic communications to or from all or a substan- tial 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. (c) Teletypewriter exchange service For purposes of this subchapter, the term ‘‘teletypewriter exchange service’’ means the ac- cess from a teletypewriter or other data station to the teletypewriter exchange system of which such station is a part, and the privilege of inter- communication by such station with substan- tially all persons having teletypewriter or other data stations constituting a part of the same teletypewriter exchange system, to which the subscriber is entitled upon payment of a charge or charges (whether such charge or charges are determined as a flat periodic amount, on the basis of distance and elapsed transmission time, or in some other manner). The term ‘‘teletype- writer exchange service’’ does not include any service which is ‘‘local telephone service’’ as de- fined in subsection (a). (d) Private communication service For purposes of this subchapter, the term ‘‘pri- vate communication service’’ means— (1) the communication service furnished to a subscriber which entitles the subscriber— (A) to exclusive or priority use of any com- munication 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 intercommunication system may be connected through switching with a service described in subsection (a), (b), or (c), (2) switching capacity, extension lines and stations, or other associated services which are provided in connection with, and are nec- essary or unique to the use of, channels or sys- tems described in paragraph (1), and (3) the channel mileage which connects a telephone station located outside a local tele- phone system area with a central office in such local telephone system, except that such term does not include any com- munication service unless a separate charge is made for such service. (Aug. 16, 1954, ch. 736, 68A Stat. 503; Pub. L. 85–859, title I, § 133(a), Sept. 2, 1958, 72 Stat. 1290; Pub. L. 87–508, § 4(a), June 28, 1962, 76 Stat. 115; Pub. L. 89–44, title III, § 302, June 21, 1965, 79 Stat. 145.) Editorial Notes CODIFICATION This subchapter, relating to the tax on communica- tions 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, ef- fective 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 ren- dered 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 elimi- nating) provisions which had reduced the tax to zero after a specified date. AMENDMENTS 1965—Subsec. (a). Pub. L. 89–44 substituted definition of ‘‘local telephone service’’ for definition of ‘‘general telephone service’’. Subsec. (b). Pub. L. 89–44 replaced definition of ‘‘toll telephone service’’ as telephone or radio telephone mes- sage or conversation for which there is a toll charge paid within the United States with a definition which defined the term as a telephonic quality communica- tion carrying a varying toll charge depending upon dis- tance and elapsed transmission time and a service enti- tling the subscriber, upon payment of a periodic charge, to unlimited telephonic communication in an area outside the local telephone system area. Subsec. (c). Pub. L. 89–44 substituted definition of ‘‘teletypewriter exchange service’’ for definition of ‘‘telegraph service’’. Subsec. (d). Pub. L. 89–44 substituted definition of ‘‘private communication service’’ for definition of ‘‘teletypewriter exchange service’’. Subsecs. (e), (f). Pub. L. 89–44 struck out subsecs. (e) and (f) which defined wire mileage service and wire and equipment service. 1962—Subsec. (e)(1), (2). Pub. L. 87–508 limited wire mileage service to service not used in the conduct of a trade or business. 1958—Subsec. (a). Pub. L. 85–859 substituted definition of ‘‘general telephone service’’ for provisions which de- fined ‘‘local telephone service’’ as any telephone serv- ice not taxable as long distance telephone service; leased wire; teletypewriter or talking circuit special service; or wire and equipment service, and provided that amounts paid for the installation of instruments, wires, poles, switchboards, apparatus, and equipment shall not be considered amounts paid for service, and