Laws: Cases and Codes : U.S. Code : Title 26 : Section 4251


   
U.S. Code as of: 01/19/04
Section 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 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 any other similar arrangement which
      permits its holder to obtain communications services and pay for
      such services in advance.



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