Page:United States Statutes at Large Volume 72 Part 1.djvu/1334

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PUBLIC LAW 85-859-SEPT. 2, 1958

[72 S T A T.

"(b) W H E R E PAYMENT I S MADE FOR TOLL TELEPHONE SERVICE OR TELEGRAPH SERVICE IN (^OIN-OPERATED TELEPHONES.—If the tax im-

posed by section 4251 with respect to toll telephone service or telegraph 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." (b) EFFECTIVE DATE.—

(1) Subject to the provisions of paragraph (2), the amendment made by subsection (a) shall apply with respect to amounts paid on or after the effective date prescribed in section 1(c) of this Act for services rendered on or after such date. (2) The amendment made by subsection (a) shall not apply with respect to amounts paid pursuant to bills rendered before the effective date prescribed in section 1(c) of this Act. In the case of amounts paid pursuant to bills rendered on or after such date for services for which no previous bill was rendered, such amendments shall apply except with respect to such services as were rendered more than 2 months before such date. In the case of services rendered more than 2 months before such date the provisions of subchapter B of chapter 33 of the Internal Revenue 4254 " ^ ^ *^^^' Code of 1954 in effect at the time such services were rendered shall apply to the amounts paid for such services. SEC. 134. AIR TAXI TRANSPORTATION. 26 USC 4263. Section 4263 (exemptions from tax on transportation of persons) is amended by adding at the end thereof the following new subsection: "(f) SMALL AIRCRAFT ON NONESTABLISHED LINES.—The tax imposed by section 4261 shall not apply to transportation by aircraft having— "(1) a gross takeoff weight (as determined under regulations prescribed by the Secretary or his delegate) of less than 12,500 pounds, and "(2) a passenger seating capacity of less than 10 adult passengers, including the pilot, except when such aircraft is operated on an established line." SEC. 135. EXEMPTION FROM COMMUNICATIONS AND TRANSPORTATION TAXES FOR NONPROFIT EDUCATIONAL ORGANIZATIONS. 42^4 " ^ ^ ^^^** ^^} EXEMPTION.—Subchapter E of chapter 33 (special provisions applicable to services and facilities taxes) is amended by renumbering section 4294 as 4295, and by inserting after section 4293 the following new section: "SEC. 4294. EXEMPTION FOR NONPROFIT EDUCATIONAL ORGANIZATIONS. "(a) EXEMPTION.—Under regulations prescribed by the Secretary or his delegate, no tax shall be imposed under section 4251 or 4261 on 26 USC 4261. ^ny amount paid by a nonprofit educational organization for services or facilities furnished to such organization. " (b) DEFINITION.—For purposes of subsection (a), the term 'nonprofit educational organization' means an educational organization 26 use503,501. descHbed in section 503(b)(2) which is exempt from income tax under section 501(a). " (b) CLERICAL AMENDMENT.—The table of sections for subchapter E of chapter 33 is amended by striking out "Sec. 4294. Cross reference to general administrative provisions."

and inserting in lieu thereof "Sec. 4294. Exemption for nonprofit educational organizations. "Sec. 429o. Cross reference to general administrative provisions."

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