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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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