Page:United States Statutes at Large Volume 76.djvu/163

 76 STAT. ]

PUBLIC LAW 87-508-JUNE 28, 1962

SEC. 4. EXEMPTION FROM COMMUNICATIONS TAX OF CERTAIN PRIVATE LINE SERVICES USED IN CONDUCT OF TRADE OR BUSINESS. (a) W I R E MILEAGE SERVICE.—Section 4252(e) of the Internal Revenue Code of 1954 (relating to definition of wire mileage service) is amended by striking out paragraphs (1) and (2) and inserting in lieu thereof the following: "(1) any telephone or radiotelephone service not used in the conduct of a trade or business, and "(2) any other wire or radio circuit service not used in the conduct of a trade or business,". (b) GENERAL TELEPHONE SERVICE.—Section 4253 of such Code (relating to exemptions from the communications tax) is amended by adding at the end thereof the following new subsection: " (j) CERTAIN PRIVATE COMMUNICATIONS SERVICES.—No tax shall be imposed under section 4251 on any amount paid for the use of any telephone or radiotelephone line or channel which constitutes general telephone service (within the meaning of section 4252(a)), if— "(1) such line or channel is furnished between specified locations in different States or between specified locations in different counties, municipalities, or similar political subdivisions of a State, and "(2) such use is in the conduct of a trade or business."' (c) EFFECTIVE DATE.—The amendments made by subsections (a) and (b) shall apply with respect to services furnished on or after January 1, 1963. SEC. 5. EXTENSION THROUGH NOVEMBER 15, 1962, OF TAX ON TRANSPORTATION OF PERSONS, AND FURTHER EXTENSION OF TAX ON TRANSPORTATION OF PERSONS BY AIR AT 5-PERCENT RATE FOR PERIOD NOVEMBER 16, 1962, THROUGH JUNE 30, 1963. (a) TEMPORARY EXTENSION OF TAX.—Section 4261 of the Internal Revenue Code of 1954 (relating to the imposition of tax on the transportation of persons) is amended— (1) by striking out everything after "equal to" in subsections (a) and (b) and inserting in lieu thereof "10 percent of the amount so paid for transportation which begins before November 16, 1962."; and (2) by striking out everything after "equivalent to " in subsection (c) and inserting in lieu thereof "10 percent of the amount so paid in connection with transportation which begins before November 16, 1962."

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72 Stat. 1290. ^^ "^^ '*^^-

26 USC 4253.

26 USC 4251.

7o Stat. 644. ^^ "^^ '*^^^-

esA Stat. soe.

(b) TAX APPLICABLE TO TRANSPORTATION OF PERSONS BY A I R FOR PERIOD NOVEMBER 16, 1962, TO J U L Y 1, 1963.—Effective with respect

to transportation beginning after November 15, 1962, subchapter C of chapter 33 of such Code (relating to the tax on the transportation of 26 USC 426ipersons) is amended to read as follows: '*^^'*'

"Subchapter C—Transportation of Persons by Air "Sec. 4261. Imposition of tax. "Sec. 4262. Definition of taxable transportation. "Sec. 4263. Exemptions. "Sec. 4264. Special rules. "SEC. 4261. IMPOSITION OF TAX. " (a) AMOUNTS PAID W I T H I N THE UNITED STATES.—There is hereby

imposed upon the amount paid within the United States for taxable transportation (as defined in section 4262) of any person by air a tax equal to 5 percent of the amount so paid for transportation which begins after November 15, 1962, and before July 1, 1963.

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