republic-os/legal/us/code/title-26/chapter-33/section-4254.md

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LegalText	26 U.S.C. § 4254	Computation of tax	us	united_states_code	code_section	26	INTERNAL REVENUE CODE	33	FACILITIES AND SERVICES	4254	26 U.S.C. § 4254	current	119-100	2026-06-26	official	https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip	/us/usc/t26/s4254	data/legal/raw/us/code/title-26/usc26.xml	4db7cc077f3f1fb342ba9317e432f184af7e945e076355a2448ed5ba79d4a5de	a261f094809116f42a96648a3d5eee80fa010379d67412551c21dd5c900b27f4	cb28e36e14881bd88d6e56bd2e2036728734d6f4c204e570f4b3aa5930214266	2026-07-04	official	legal us-code

26 U.S.C. § 4254 - Computation of tax

Text

(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.

(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.)

Notes

Editorial Notes

Codification This subchapter, relating to the tax on communications was repealed by Pub. L. 90–364, title I, § 105(b)(3), June 28, 1968, 82 Stat. 266, as amended by Pub. L. 91–172, title VII, § 702(b)(3), Dec. 30, 1969, 83 Stat. 660; Pub. L. 91–614, title II, § 201(b)(3), Dec. 31, 1970, 84 Stat. 1843, effective with respect to amounts paid pursuant to bills first rendered on or after Jan. 1, 1982. In the case of communications services rendered before Nov. 1, 1981, for which a bill has not been rendered before Jan. 1, 1982, a bill shall be treated as having been first rendered on Dec. 31, 1981. Repeal of this subchapter was not executed in view of the amendments to section 4251 of this title by Pub. L. 96–499, Pub. L. 97–34, Pub. L. 97–248, Pub. L. 98–369, Pub. L. 99–514, Pub. L. 100–203, and Pub. L. 101–508, extending the date in (and finally eliminating) provisions which had reduced the tax to zero after a specified date.

Amendments1977—Subsec. (c). Pub. L. 95–172 added subsec. (c). 1965—Subsec. (a). Pub. L. 89–44 substituted “local telephone service or toll telephone service” for “general telephone service, toll telephone service, or telegraph service”. Subsec. (b). Pub. L. 89–44 substituted “toll telephone service” for “toll telephone service or telegraph service” in catchline and text. 1958—Subsec. (a). Pub. L. 85–859 provided that if the person who renders the bill groups individual items for purposes of rendering the bill and computing the tax, then the amount on which the tax with respect to each group shall be based shall be the sum of all items within that group, and the tax on remaining items not included in any such group shall be based on the charge of each item separately. Subsec. (b). Pub. L. 85–859 substituted “toll telephone service” for “long distance telephone service”.

Statutory Notes and Related Subsidiaries

Effective Date of 1977 AmendmentPub. L. 95–172, § 2(b), Nov. 12, 1977, 91 Stat. 1358, provided that: “The amendment made by this section [amending this section] shall take effect only with respect to amounts paid pursuant to bills first rendered on or after the first day of the first month which begins more than 20 days after the date of the enactment of this Act [Nov. 12, 1977]. For purposes of the preceding sentence, in the case of communications services rendered more than 2 months before the effective date provided in the preceding sentence, no bill shall be treated as having been first rendered on or after such effective date.”

Effective Date of 1965 AmendmentAmendment by Pub. L. 89–44 applicable to amounts paid pursuant to bills rendered on or after January 1, 1966, for service rendered on or after such date, but, in the case of amounts paid pursuant to bills rendered after January 1, 1966, for services rendered before such date for which no previous bill had been rendered, applicable except with respect to such services as were rendered more than two months before such date, see section 701(b)(2)(A) of Pub. L. 89–44, set out as a note under section 4251 of this title.

Effective Date of 1958 AmendmentFor effective date of amendment made by Pub. L. 85–859, see section 133(b) of Pub. L. 85–859, set out as a note under section 4251 of this title.