Laws: Cases and Codes : U.S. Code : Title 26 : Section 4254


   
U.S. Code as of: 01/19/04
Section 4254. Computation of tax

    (a) General rule
      If a bill is rendered the taxpayer for local telephone service or
    toll telephone service - 
        (1) the amount on which the tax with respect to such services
      shall be based shall be the sum of all charges for such services
      included in the bill; except that
        (2) if the person who renders the bill groups individual items
      for purposes of rendering the bill and computing the tax, then
      (A) the amount on which the tax with respect to each such group
      shall be based shall be the sum of all items within that group,
      and (B) the tax on the remaining items not included in any such
      group shall be based on the charge for each item separately.
    (b) Where payment is made for toll telephone service in
      coin-operated telephones
      If the tax imposed by section 4251 with respect to toll telephone
    service is paid by inserting coins in coin-operated telephones, tax
    shall be computed to the nearest multiple of 5 cents, except that,
    where the tax is midway between multiples of 5 cents, the next
    higher multiple shall apply.
    (c) Certain State and local taxes not included
      For purposes of this subchapter, in determining the amounts paid
    for communications services, there shall not be included the amount
    of any State or local tax imposed on the furnishing or sale of such
    services, if the amount of such tax is separately stated in the
    bill.



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