Page images
PDF
EPUB

will discontinue the allowance of such privileges, the privileges granted under this section shall not apply thereafter in respect of civil aircraft registered in that foreign country and employed in foreign trade or trade between the United States and any of its possessions.

SEC. 3453. EXISTING CONTRACTS.

(a) TAX PAYABLE BY VENDEE.-If (1) any person has, prior to the effective date of part V of Title V of the Revenue Act of 1941, made a bona fide contract for the sale on or after such date of any article with respect to the sale of which a tax is imposed by that act or an existing rate of tax is increased by that act, and (2) such contract does not permit the adding to the amount to be paid under such contract of the whole of such tax or increased rate of tax, then (unless the contract prohibits such addition) the vendee shall, in lieu of the vendor, pay so much of the tax as is not so permitted to be added to the contract price.

[Part V of Title V of the Revenue Act of 1941 took effect on October 1, 1941.]

(b) TAX PAID TO VENDOR.-Taxes payable by the vendee shall be paid to the vendor at the time the sale is consummated, and shall be collected and paid to the United States by the vendor in the same manner as provided in section 3467. In case of failure or refusal by the vendee to pay such taxes to the vendor, the vendor shall report the facts to the Commissioner, who shall cause collection of such taxes to be made from the vendee.

CHAPTER 30-TRANSPORTATION AND COMMUNICATION

SUBCHAPTER A-TRANSPORTATION OF OIL BY PIPE LINE SEC. 3460. TAX.

(a) COMPUTATION AND PAYMENT.-There shall be imposed upon all transportation of crude petroleum and liquid products thereof by pipe line

(1) A tax equivalent to 4%1⁄2 per centum of the amount paid for such transportation, to be paid by the person furnishing such transportation.

(2) In case no charge for transportation is made, either by reason of ownership of the commodity transported or for any other reason, a tax equivalent to 41⁄2 per centum of the fair charge for such transportation, to be paid by the person furnishing such transportation.

(3) If (other than in the case of an arm's length transaction) the payment for transportation is less than the fair charge therefor, a tax equivalent to 41⁄2 per centum of such fair charge, to be paid by the person furnishing such transportation.

(b) FAIR CHARGE DEFINED.-For the purposes of this section, the fair charge for transportation shall be computed

(1) from actual bona fide rates or tariffs, or

(2) if no such rates or tariffs exist, then on the basis of the actual bona fide rates or tariffs of other pipe lines for like services, as determined by the Commissioner, or

(3) if no such rates or tariffs exist, then on the basis of a reasonable charge for such transportation, as determined by the Commissioner.

(c) EXEMPT TRANSPORTATION.-For the purposes of this section, the term "transportation" shall not include any movement through lines of pipe within the premises of a refinery, a bulk plant, a terminal, or a gasoline plant, if such movement is not a continuation of a taxable transportation. The crossing of rights-of-way, streets, highways, railroads, levees, or narrow bodies of water, in connection with such a movement, shall not of itself constitute such movement as being "transportation.'

[ocr errors]

[For power of the Secretary to authorize exemptions as to services purchased for the exclusive use of the United States, see section 307 (c) of the Revenue Act of 1943 (58 Stat. 66), as amended by section 303 of the Revenue Act of 1945 (59 Stat. 576).]

SEC. 3461. RETURNS.

Every person liable for the tax imposed under section 3460 shall make monthly returns under oath in duplicate and pay such taxes to the collector for the district in which is located his principal place

of business or, if he has no principal place of business in the United States, then to the collector at Baltimore, Maryland. Such returns shall contain such information and be made at such times and in such manner as the Commissioner, with the approval of the Secretary, may by regulations prescribe.

SEC. 3462. PUBLICITY OF RETURNS.

For provisions with respect to publicity of returns under this subchapter, see subsection (a) (2) of section 55 [in the note following section 1604].

SUBCHAPTER B-TELEGRAPH, TELEPHONE, RADIO, AND CABLE FACILITIES

SEC. 3465. IMPOSITION AND RATE OF TAX.

(a) [IN GENERAL.-] There shall be imposed: (1) TELEPHONE AND TELEGRAPH, ETC.

(A) On the amount paid within the United States for each telephone or radio telephone message or conversation for which the toll charge is more than 24 cents, a tax equal to 20 per centum of the amount so paid. If a bill is rendered the taxpayer for the services described in this subparagraph, the amount upon which the tax shall be based shall be the sum of all such charges included in the bill, and the tax shall not be based upon the charge for each item, separately, included in the bill.

(B) On the amount paid within the United States for each telegraph, cable, or radio dispatch or message, a tax equal to 15 per centum of the amount so paid, except that in the case of each international telegraph, cable, or radio dispatch or message the rate shall be 10 per centum. If a bill is rendered the taxpayer for the services described in this subparagraph, the amount upon which the tax at each of the rates in this subparagraph shall be based shall be the sum of all such charges at that rate included in the bill, and the tax shall not be based upon the charge for each item, separately, included in the bill.

If the tax under subparagraph (A) or (B) is paid by inserting coins in coin-operated telephones, the 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. Only one payment of a tax imposed by subparagraph (A) or (B) shall be required notwithstanding the lines or stations of one or more persons are used in the transmission of such dispatch, message, or conversation.

(2) LEASED WIRES, ETC.

(A) A tax equivalent to 15 per centum of the amount paid for leased wire, teletypewriter, or talking circuit special service, but not including an amount paid for leased wire, teletypewriter, or talking circuit special service used exclusively in rendering a service taxable under subparagraph (B).

(B) A tax equivalent to 5 per centum of the amount paid for any wire and equipment service (including stock quota

tion and information services, burglar alarm or fire alarm service, and all other similar services, but not including service described in subparagraph (A)).

The tax shall apply under this paragraph whether or not the wires or services are within a local exchange area.

(3) LOCAL TELEPHONE SERVICE. A tax equivalent to 10 per centum of the amount paid by subscribers for local telephone service and for any other telephone service in respect of which a tax is not payable under paragraph (1) or (2). Amounts paid for the installation of instruments, wires, poles, switchboards, apparatus, and equipment shall not be considered amounts paid for service. Service paid for by inserting coins in coin-operated telephones available to the public shall not be subject to the tax imposed by this paragraph, 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.

[For wartime increase in rates, see section 1650.]

(b) [SPECIAL WIRE SERVICE IN COMPANY BUSINESS.-]This section shall not apply to the amount paid for so much of the service described in paragraph (2) of subsection (a) as is utilized in the conduct, by a common carrier or telephone or telegraph company or a radio broadcasting station or network, of its business as such.

SEC. 3466. EXEMPTION FROM TAX.

(a) [STATES, TERRITORIES, ETC.-]No tax shall be imposed under section 3465 upon any payment received for services or facilities furnished to any State, Territory of the United States, or political subdivision thereof, or the District of Columbia, or an international organization, or any corporation created by act of Congress to act in matters of relief under the treaty of Geneva of August 22, 1864.

(b) [NEWS SERVICES.-]No tax shall be imposed under section 3465 (a) (1) and (2) upon any payment received from any person for services or facilities utilized 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 services or facilities is billed in writing to such person. Section 3465 (a) (3) shall not be construed as imposing a tax on services and facilities described in section 3465 (a) (1) or (2) which are exempt from tax under this subsection.

(c) [REGULATIONS.-]The right to exemption under this section shall be evidenced in such manner as the Commissioner with the approval of the Secretary may by regulation prescribe.

[For power of the Secretary to authorize additional exemptions as to services purchased for the exclusive use of the United States, see section 307 (c) of the Revenue Act of 1943 (58 Stat. 66), as amended by section 303 of the Revenue Act of 1945 (59 Stat. 576).]

SEC. 3467. RETURNS AND PAYMENT.

(a) [TAXPAYER.-]The taxes imposed by section 3465 shall be paid by the person paying for the services or facilities.

(b) [COLLECTION, RETURN, AND PAYMENT.-]Each person receiving any payments specified in section 3465 shall collect the amount of the tax imposed by such section from the person making such payments, and shall on or before the last day of each month make a return, under oath, for the preceding month, and pay the taxes so collected, to the collector of the district in which his principal place of business is located, or, if he has no principal place of business in the United States, to the collector at Baltimore, Maryland. Such returns shall contain such information and be made in such manner as the Commissioner with the approval of the Secretary may by regulation prescribe. The Commissioner may extend the time for making returns and paying the taxes collected, under such rules and regulations as he shall prescribe with the approval of the Secretary, but no such extension shall be for more than 90 days.

[For postponements by reason of war, see section 3804.] SEC. 3468. CROSS REFERENCE.

For enforcement of liability for taxes collected, see section 3661.
SUBCHAPTER C-TRANSPORTATION OF PERSONS

SEC. 3469. TAX ON TRANSPORTATION OF PERSONS, ETC.

*

(a) TRANSPORTATION.-There shall be imposed upon the amount paid within the United States * * for the transportation, on or after October 10, 1941,1 of persons by rail, motor vehicle, water, or air, within or without the United States, a tax equal to 10 per centum of the amount so paid. The tax shall not apply with respect to transportation any part of which is outside the northern portion of the Western Hemisphere, except with respect to any part of such transportation which is from any port or station within the United States, Canada, or Mexico to any other port or station within the United States, Canada, or Mexico. A port or station within Newfoundland shall not, for the purposes of the preceding sentence, be considered as a port or station within Canada. For the purposes of this section, the words "northern portion of the Western Hemisphere" mean the area lying west of the 30th meridian west of Greenwich, east of the International Date Line, and north of the equator, but not including any country of South America. Such tax shall apply to transportation by motor vehicles having a passenger seating capacity of less than ten adult passengers, including the driver, only when such vehicle is operated on an established line.

[For wartime increase in rates, see section 1650.]

(b) EXEMPTION OF CERTAIN TRIPS.-The tax imposed by subsection (a) shall not apply to amounts paid for transportation which do not exceed 35 cents, to amounts paid for commutation or season tickets for single trips of less than 30 miles, or to amounts paid for commutation tickets for one month or less.

(c) SEATS, BERTHS, ETC.-There shall be imposed upon the amount paid within the United States for seating or sleeping accommodations 1 The statute reads "such effective date," referring to "October 10, 1941," here omitted.

« PreviousContinue »