26 U.S.C. § 4254 — Computation of tax
submitted 72 years ago by ch. 736 to r/title-26-INTERNAL-REVENUE-CODE · 238 words · no verdicts yet
This section explains how to calculate the communications-service tax when a bill groups charges, when toll service is paid with coins, and when a separately stated state or local tax appears on the bill.
(a) General rule. If a taxpayer* is billed for local or toll telephone service*, the taxable amount is the total of all charges for those services on the bill. If the biller groups individual items to prepare the bill and calculate tax, the taxable amount for each group is the total of its items, and each ungrouped item is taxed separately on its own charge.
(b) Coin-operated toll service. If toll telephone tax is paid by putting coins into coin-operated telephones, calculate the tax to the nearest multiple of 5 cents. If the tax is exactly halfway between multiples of 5 cents, round up to the next higher multiple.
(c) Certain state and local taxes. When determining amounts paid for communications services, do not include a state or local tax on providing or selling the services if that tax is separately stated on the bill.
If a bill is rendered the taxpayer* for local telephone service* or toll telephone service*—
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
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.
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.
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.
Source credit: (Aug. 16, 1954, ch. 736, 68A Stat. 504; Pub. L. 85–859, title I, § 133(a), Sept. 2, 1958, 72 Stat. 1291; Pub. L. 89–44, title III, § 302, June 21, 1965, 79 Stat. 147; Pub. L. 95–172, § 2(a), Nov. 12, 1977, 91 Stat. 1358.)
- 1954Enacted · Act of Aug. 16, 1954, ch. 736
- 1958Amended · Pub. L. 85-859 · 72 Stat. 1291
- 1965Amended · Pub. L. 89-44 · 79 Stat. 147
- 1977Amended · Pub. L. 95-172 · 91 Stat. 1358
A history note hasn’t been published yet. The record shows enactment by ch. 736 on 1954-08-16.
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