"(2) a service which entitles the subscriber, upon payment of a periodic charge (determined as a flat amount or upon the basis of total elapsed transmission time), to the privilege of an unlimited number of telephonic communications to or from all or a substantial portion of the persons having telephone or radio telephone stations in a specific area which is outside the local telephone system area in which the station provided with this service is located.

"(c) TELETYPEWRITER EXCHANGE SERVICE. For purposes of this subchapter, the term 'teletypewriter exchange service' means the access from a teletypewriter or other data station to the teletypewriter exchange system of which such station is a part, and the privilege of intercommunication by such station with substantially all persons having teletypewriter or other data stations constituting a part of the same teletypewriter exchange system, to which the subscriber is entitled upon payment of a charge or charges (whether such charge or charges are determined as a flat periodic amount, on the basis of distance and elapsed transmission time, or in some other manner). The term 'teletypewriter exchange service' does not include any service which is local telephone service' as defined in subsection (a).

“(d) PRIVATE COMMUNICATION SERVICE. For purposes of this subchapter, the term 'private communication service' means

"(1) the communication service furnished to a subscriber which entitles the subscriber

"(A) to exclusive or priority use of any communication channel or groups of channels, or

"(B) to the use of an intercommunication system for the subscriber's stations, regardless of whether such channel, groups of channels, or intercommunication system may be connected through switching with a service described in subsection (a), (b) (2), or (c),

"(2) switching capacity, extension lines and stations, or other associated services which are provided in connection with, and are necessary or unique to the use of, channels or systems described in paragraph (1), and

"(3) the channel mileage which connects a telephone station located outside a local telephone system area with a central office in such local telephone system,

except that such term does not include any communication service unless a separate charge is made for such service.

“SEC. 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 if the charge for such 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 or his delegate 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 installa

tion.

"SEC. 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."

SEC. 303. TAX ON TRANSPORTATION OF PERSONS BY AIR.

(a) IN GENERAL.-Section 4261 (relating to imposition of tax on transportation of persons by air) is amended by striking out "November 15, 1962, and before July 1, 1965" wherever it appears and inserting in lieu thereof "November 15, 1962".

(b) CONFORMING AMENDMENT.-Section 5 of the Tax Rate Extension Act of 1962 (76 Stat. 115) is amended by striking out subsection (e).

SEC. 304. SAFE DEPOSIT BOXES.

Subchapter D of chapter 33 (relating to safe deposit boxes) is hereby repealed and the table of subchapters for chapter 33 is amended by striking out the item relating to subchapter D.

SEC. 305. CONFORMING CHANGES.

(a) Section 4291 (relating to cases where persons receiving payment must collect tax) is amended to read as follows:

"SEC. 4291. CASES WHERE PERSONS RECEIVING PAYMENT MUST COLLECT TAX.

"Except as otherwise provided in section 4264 (a), every person receiving any payment for facilities or services on which a tax is imposed upon the payor thereof under this chapter shall collect the amount of the tax from the person making such payment."

(b) Section 6040 (relating to cross references) is amended by striking out paragraph (6).

TITLE IV-MISCELLANEOUS TAXES

SEC. 401. DOCUMENTARY STAMP TAXES.

(a) IN GENERAL.-Subchapters A (relating to issuance of capital stock, etc.), B (relating to sales or transfers of capital stock, etc.), and C (relating to convey

un any service, notwithstanding the lines re used in furnishing such service. UNICATIONS COMPANIES.-No tax shall be nount paid for any toll telephone service extent that the amount so paid is for use graph company, or radio broadcasting stå iness as such.

x shall be imposed under section 4251 On nstallation of any instrument, wire, pole as is properly attributable to such installa

amended by striking out the items r it of are repealed nitions), 4382 (relating to exempti (b) TECHNICAL AND CONFORMIN partnerships) are repealed and the 34 is amended by striking out the i SEC. 402. PLAYING CARDS.

Subchapter A of chapter 36 (rel table of subchapters for chapter 36 to subchapter A.

SEC. 403. OCCUPATIONAL TAX (a) IN GENERAL.-Section 4461

endered the taxpayer for local telephone by striking out subsection (a) and

tax with respect to such services shall be ges for such services included in the bill:

the bill groups individual items for pur omputing the tax, then (A) the amount each such group shall be based shall be group, and (B) the tax on the remaining oup shall be based on the charge for each

TOLL TELEPHONE SERVICE IN COIN-OPERATED

ection 4251 with respect to toll telephone in-operated telephones, tax shall be com ts, except that, where the tax is midway

gher multiple shall apply."

ON OF PERSONS BY AIR.

ting to imposition of tax on transportation iking out "November 15, 1962, and before d inserting in lieu thereof "November 15, tion 5 of the Tax Rate Extension Act of iking out subsection (e).

graph (1) and inserting in lieu the

"(a) IN GENERAL.-There shall b

person who maintains for use or pe occupied by him, a coin-operated ga the following rates:

"(1) $250 a year; and

"(2) $250 a year for each ad which is so permitted. If one other device shall not be consid "(b) EXCEPTION.-No tax shall be known as a claw, crane, or digger mac

ment or gaming device) is amended (b) DEFINITION.-Section 4462 (re

"SEC. 4462. DEFINITION OF COIN

"(a) IN GENERAL.-For purposes gaming device' means any machine wh

"(1) a so-called 'slot' machine of a coin, token, or similar objec of chance, may deliver, or entitle t to receive, cash, premiums, merch

"(2) a machine which is simila and is operated without the inser "(b) EXCLUSION.-The term 'coin-o bona fide vending machines in which a (c) CLERICAL AMENDMENT.-The tab

to safe deposit boxes) is hereby repealed er 33 is amended by striking out the item 36 is amended by striking out

where persons receiving payment must col

SONS RECEIVING PAYMENT MUST

etion 4264 (a), every person receiving any which a tax is imposed upon the payof

"Sec. 4462. Definition of coi

and inserting in lieu thereof:

"Sec. 4462. Definition of coin SEC. 404. OCCUPATIONAL TAX ON POOL TABLES.

Subchapter C of chapter 36 (relatin billiard and pool tables) is repealed an is amended by striking out the item r

(a) Section 4402 (2) (relating to exe

Et the amount of the tax from the person SEC. 405. TECHNICAL AND CONFOR references) is amended by striking out by striking out "section 4462 (a) (2) (B)

LLANEOUS TAXES

TAXES.

elating to issuance of capital stock, etc.).

4462 (a) (2),".

(b) Section 4901 (a) (relating to pay carrying on certain business) is amended in lieu thereof "4461 (a) (1)".

(c) Section 4905(b) (1) (relating to r "playing cards," and by striking out "445 (d) Paragraph (2) of section 4914 (a)

ital stock, etc.), and C (relating to convey acquisitions) is amended by inserting b

"as in effect on January 1, 1965".

TITLE V-ALCOHOL AND TOBACCO

TAXES

SEC. 501. PRESENT TAX RATES MADE PERMANENT.

(a) Section 5001 (a) (relating to imposition, rate, and attachment of tax on distilled spirits) is amended by striking out the last sentence of paragraph (1) and the last sentence of paragraph (3).

(b) Section 5022 (relating to tax on cordials and liqueurs containing wine) is amended by striking out at the end of the first sentence "until July 1, 1965, and on or after July 1, 1965, at the rate of $1.60 per wine gallon and a proportionate tax at a like rate on all fractional parts of such wine gallon".

(c) Section 5041(b) (relating to rates of tax on wine) is amended

(1) by striking out in paragraph (1) ", except that on and after July 1, 1965, the rate shall be 15 cents per wine gallon";

(2) by striking out in paragraph (2)", except that on and after July 1, 1965, the rate shall be 60 cents a wine gallon";

(3) by striking out in paragraph (3) ", except that on and after July 1, 1965, the rate shall be $2.00 per wine gallon";

(4) by striking out in paragraph (4) “, except that on and after July 1, 1965, the rate shall be $3.00 per wine gallon"; and

(5) by striking out in paragraph (5) “, except that on and after July 1, 1965, the rate shall be $2.00 per wine gallon".

(d) Section 5051(a) (relating to imposition and rate of tax on beer) is amended by striking out the second sentence.

(e) Section 5063 (relating to floor stocks refunds on distilled spirits, wines, cordials, and beer) is hereby repealed and the table of sections for subpart E of part I of subchapter A of chapter 51 is amended by striking out the item relating to section 5063.

(f) Paragraph (1) of section 5701 (c) (relating to rate of tax on cigarettes) is amended by striking out "until July 1, 1965, and $3.50 per thousand on and after July 1, 1965".

(g) Section 5707 (relating to floor stocks refund on cigarettes) is hereby repealed and the table of sections for subchapter A of chapter 52 is amended by striking out the item relating to section 5707.

(h) Section 497 of the Revenue Act of 1951 (relating to refunds on articles from foreign trade zones) is hereby repealed.

TITLE VI-ADMINISTRATIVE PROVISIONS

SEC. 601. TECHNICAL AND CONFORMING CHANGES.

(a) Section 6415 (relating to credits or refunds to persons who collected certain taxes) is amended

(1) by striking out "section 4231(1), 4231(2), 4231(3), 4241, 4251, 4261, or 4286" each place it appears and inserting in lieu thereof "section 4251 or 4261"; and

(2) by striking out the last sentence of subsection (a).

(b) Section 6416 (relating to credits and refunds of certain taxes on sales and services) is amended

(1) by striking out in the material in subsection (a) (1) which precedes subparagraph (A) "section 4231 (4), (5), or (6) (cabarets, etc.),";

(2) by striking out ", admission, or service" each place it appears in subsection (a) (1) (A) ;

(3) by amending subparagraph (B) of subsection (a) (1) to read as follows:

"(B) has repaid the amount of the tax to the ultimate purchaser of the article;";

(4) by striking out "or (D)" in subsection (a) (1) (C);

(5) by striking out "(i), (ii), or (iii), as the case may be," in subsection (a) (1) (D);

(6) by striking out subparagraphs (A) and (B) of subsection (a) (3), by striking out "(ii)" in subparagraph (C) of such subsection, and by striking out "or (D)" in subparagraph (D) of such subsection;

(7) by striking out “31 or" and "(in the case of a tax imposed by chapter 32)" in subsection (b)(1);

(8) by amending subparagraph (F) of subsection (b)(2) to read as follows:

"(F) in the case of a tire or inner tube, resold for use as provided in subparagraph (C) of paragraph (3) and the other article referred to in such subparagraph is by any person exported or sold as provided in such subparagraph;";

(9) by striking out subparagraphs (N), (O), (P), and (Q) of subsection (b) (2) and by striking out the semicolon at the end of subparagraph (M) of such subsection and inserting à period;

(10) by striking out “(D)," in subparagraph (A) of subsection (b) (3), by striking out subparagraph (D) of such subsection, and by amending subparagraphs (B) and (C) of such subsection to read as follows:

"(B) in the case of a part or accessory taxable under section 4061(b), such article is used by the second manufacturer or producer as material in the manufacture or production of, or as a component part of, any other article manufactured or produced by him;

"(C) in the case of a tire or inner tube taxable under section 4071, such article is sold by the second manufacturer or producer on or in connection with, or with the sale of, any other article manufactured or produced by him and such other article is by any person exported, sold to a State or local government for the exclusive use of a State or local government, sold to a nonprofit educational organization for its exclusive use, or used or sold for use as supplies for vessels or aircraft;"; (11) by amending paragraph (4) of subsection (b) to read as follows: "(4) TIRES AND INNER TUBES.—If—

"(A) a tire or inner tube taxable under section 4071 is sold by the manufacturer, producer, or importer thereof on or in connection with, or with the sale of, any other article manufactured or produced by him; and

"(B) such other article is by any person exported, sold, to a State or local government for the exclusive use of a State or local government, sold to a nonprofit educational organization for its exclusive use, or used or sold for use as supplies for vessels or aircraft,

any tax imposed by chapter 32 in respect of such tire or inner tube which has been paid by the manufacturer, producer, or importer thereof shall be deemed to be an overpayment by him.";

(12) by striking out "4053(b) (1) or" each place it appears in subsection (b) (5).

(13) by amending subsection (c) to read as follows:

"(c) CREDIT FOR TAX PAID ON TIRES OR INNER TUBES.-If tires or inner tubes on which tax has been paid under chapter 32 are sold on or in connection with, or with the sale of, another article taxable under chapter 32, there shall (under regulations prescribed by the Secretary or his delegate) be credited (without interest) against the tax imposed on the sale of such other article, an amount determined by multiplying the applicable percentage rate of tax for such other article by

"(1) the purchase price (less, in the case of tires, the part of such price attributable to the metal rim or rim base), if such tires or inner tubes were taxable under section 4071 (relating to tax on tires and inner tubes); or

"(2) if such tires or inner tubes were taxable under section 4218 (relating to use by manufacturer, producer, or importer), the price (less, in the case of tires, the part of such price attributable to the metal rim or rim base) at which such or similar tires or inner tubes are sold, in the ordinary course of trade, by manufacturers, producers, or importers thereof, as determined by the Secretary or his delegate.

The credit provided by this subsection shall be allowable only in respect of the first sale on or in connection with, or with the sale of, another article on the sale of which tax is imposed under chapter 32.";

(14) by striking out subsection (d); and

(15) subsection (g) is amended by striking out "sections 4061 (a), 4111, 4121, 4141," and inserting in lieu thereof "section 4061(a),”.

(c) Section 6808 (relating to special provision relating to stamps) is amended by striking out paragraphs (1), (4), and (9).