Laws: Cases and Codes : U.S. Code : Title 26 : Section 4253


   
U.S. Code as of: 01/19/04
Section 4253. Exemptions

    (a) Certain coin-operated service
      Service paid for by inserting coins in coin-operated telephones
    available to the public shall not be subject to the tax imposed by
    section 4251 with respect to local telephone service, or with
    respect to toll telephone service if the charge for such toll
    telephone service is less than 25 cents; except that where such
    coin-operated telephone service is furnished for a guaranteed
    amount, the amounts paid under such guarantee plus any fixed
    monthly or other periodic charge shall be subject to the tax.
    (b) News services
      No tax shall be imposed under section 4251, except with respect
    to local telephone service, on any payment received from any person
    for services used in the collection of news for the public press,
    or a news ticker service furnishing a general news service similar
    to that of the public press, or radio broadcasting, or in the
    dissemination of news through the public press, or a news ticker
    service furnishing a general news service similar to that of the
    public press, or by means of radio broadcasting, if the charge for
    such service is billed in writing to such person.
    (c) International, etc., organizations
      No tax shall be imposed under section 4251 on any payment
    received for services furnished to an international organization,
    or to the American National Red Cross.
    (d) Servicemen in combat zone
      No tax shall be imposed under section 4251 on any payment
    received for any toll telephone service which originates within a
    combat zone, as defined in section 112, from a member of the Armed
    Forces of the United States performing service in such combat zone,
    as determined under such section, provided a certificate, setting
    forth such facts as the Secretary may by regulations prescribe, is
    furnished to the person receiving such payment.
    (e) Items otherwise taxed
      Only one payment of tax under section 4251 shall be required with
    respect to the tax on any service, notwithstanding the lines or
    stations of one or more persons are used in furnishing such
    service.
    (f) Common carriers and communications companies
      No tax shall be imposed under section 4251 on the amount paid for
    any toll telephone service described in section 4252(b)(2) to the
    extent that the amount so paid is for use by a common carrier,
    telephone or telegraph company, or radio broadcasting station or
    network in the conduct of its business as such.
    (g) Installation charges
      No tax shall be imposed under section 4251 on so much of any
    amount paid for the installation of any instrument, wire, pole,
    switchboard, apparatus, or equipment as is properly attributable to
    such installation.
    (h) Nonprofit hospitals
      No tax shall be imposed under section 4251 on any amount paid by
    a nonprofit hospital for services furnished to such organization.
    For purposes of this subsection, the term "nonprofit hospital"
    means a hospital referred to in section 170(b)(1)(A)(iii) which is
    exempt from income tax under section 501(a).
    (i) State and local governmental exemption
      Under regulations prescribed by the Secretary, no tax shall be
    imposed under section 4251 upon any payment received for services
    or facilities furnished to the government of any State, or any
    political subdivision thereof, or the District of Columbia.
    (j) Exception for nonprofit educational organizations
      Under regulations prescribed by the Secretary, no tax shall be
    imposed under section 4251 on any amount paid by a nonprofit
    educational organization for services or facilities furnished to
    such organization. For purposes of this subsection, the term
    "nonprofit educational organization" means an educational
    organization described in section 170(b)(1)(A)(ii) which is exempt
    from income tax under section 501(a). The term also includes a
    school operated as an activity of an organization described in
    section 501(c)(3) which is exempt from income tax under section
    501(a), if such school normally maintains a regular faculty and
    curriculum and normally has a regularly enrolled body of pupils or
    students in attendance at the place where its educational
    activities are regularly carried on.
    (k) Filing of exemption certificates
      (1) In general
        In order to claim an exemption under subsection (c), (h), (i),
      or (j), a person shall provide to the provider of communications
      services a statement (in such form and manner as the Secretary
      may provide) certifying that such person is entitled to such
      exemption.
      (2) Duration of certificate
        Any statement provided under paragraph (1) shall remain in
      effect until - 
          (A) the provider of communications services has actual
        knowledge that the information provided in such statement is
        false, or
          (B) such provider is notified by the Secretary that the
        provider of the statement is no longer entitled to an exemption
        described in paragraph (1).

      If any information provided in such statement is no longer
      accurate, the person providing such statement shall inform the
      provider of communications services within 30 days of any change
      of information.



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