Page:United States Statutes at Large Volume 73.djvu/657

 73 S T A T. ]

PUBLIC LAW 86-344-SEPT. 21, 1959

SEC. 4. EXEMPTION FOR CERTAIN GENERAL TELEPHONE SERVICE. (a) EXEMPTION FROM TAX.—Section 4253(f) of the Internal Revenue Code of 1954 (relating to exemptions in respect of special wire service in company business) is amended to read as follows: "(f)

619 J^ stat^.^1290.

COMMON CARRIERS AND COMMUNICATIONS COMPANIES.—No tax

shall be imposed under section 4251 on the amount paid for— " (1) any wire mileage service or wire and equipment service; or "(2) the use of any telephone or radio telephone line or channel which constitutes general telephone service (within the meaning of section 4252(a)), but only if such line or channel connects stations between any two of which there would otherwise be a toll charge, 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." (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 January 1, 1959, 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 January 1, 1959. In the case of amounts paid pursuant to bills rendered on or after such date for services for which no bill was rendered before such date, such amendment shall apply except with respect to such services as were rendered more than 2 months before such date. I n the case of services rendered more than 2 months before such date, the provisions of subchapter B of chapter 33 of the Internal Revenue Code of 1954 in effect at the time esA stat^spa^ 26 such services were rendered shall apply to the amounts paid for 4254. u s e 4251such services. SEC. 5. SALES OR TRANSFERS OF STOCK RIGHTS, ETC. (a) IMPOSITION OF TAX.—Section 4321 of the Internal Revenue Code esA Stat. 5 is. of 1954 (relating to imposition of tax) is amended to read as follows: 26 USC 4321. "SEC. 4321. IMPOSITION OF TAX. "There is hereby imposed on each sale or transfer of shares or certificates of stock, or of rights to subscribe for or to receive such shares or certificates, issued by a corporation, a tax at the rate of 4 cents on each $100 (or major fraction thereof) of the actual value of the certificates, of the shares where no certificates are sold or transferred, or of the rights, as the case may be. In no case shall the tax so imposed on any such sale or transfer be— " (1) more than 8 cents on each share, or " (2) less than 4 cents on the sale or transfer.'* (b)

CERTIFICATION AS TO V A L U E BY TRANSFEROR OR TRANSFER E E. —

Section 4323(b) of the Internal Revenue Code of 1954 (relating to the certification of value by a transferor or transferee) is amended to read as follows: "(b)

CERTIFICATION AS TO VALUE BY TRANSFEROR OR TRANSFEREE.—

Where shares or certificates of stock, or of rights to subscribe for or to receive such shares or certificates, are presented for transfer and the tax thereon is paid by the use of adhesive stamps, such shares, certificates, or rights shall be accompanied by a certification signed by the transferor or his agent or the transferee or his agent as to the actual value of the shares, certificates, or rights so transferred, and any corporation or transfer agent to whom such shares, certificates, or rights are presented shall be entitled to rely on such certification without further inquiry." 32716 O-60—42

72 stat^ j296. 26 USC 4323,

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