[Code of Federal Regulations]
[Title 26, Volume 16]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR49.4252-7]

[Page 245-246]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 49_FACILITIES AND SERVICES EXCISE TAXES--Table of Contents
 
                        Subpart C_Communications
 
Sec. 49.4252-7  Wire and equipment service.

    (a) In general. The term ``wire and equipment service'' includes 
stock quotation and information services, burglar alarm or fire alarm 
service, and all other similar services (whether or not oral 
transmission is involved). In general, the term relates to wire lines or 
channels and equipment by means of which information or services are 
furnished to the subscriber. The phrase ``all other similar services'' 
includes innovations in the wire and equipment field. The term does not 
include teletypewriter exchange service or any service furnished by any 
means other than wire communication. Tax is imposed on the amounts paid 
for such wire lines or channels, equipment, and information or services.
    (b) Examples. The following are examples of wire and equipment 
service:
    (1) Burglar, fire, or other alarm service where the service consists 
of wire lines or channels furnished between a remote point and the 
subscriber's premises, or a police or fire station, or a central 
station, and over which a signal is transmitted in the case of illegal 
entry, fire, leakage, etc.
    (2) Wire lines or channels furnished between a point of origin and 
the subscriber's premises over which are given stock and bond market 
quotations and reports, racing results, baseball scores, and other 
sporting results, news items, musical programs, weather reports, the 
time, etc.
    (3) Metering services, including wire lines or channels and 
equipment, furnished between a remote point and the subscriber's 
premises, over which signals are transmitted so that the subscriber may 
obtain information as to a given condition at the remote point, such as 
water level, water pressure, gas pressure, etc.
    (4) Remote control wire lines or channels furnished between a remote 
point and the subscriber's premises over which signals are transmitted 
which will actuate an instrument at the remote point.
    (c) Amounts paid. In determining the amount of tax due, the amount 
paid for the service shall include all charges made in connection with 
the furnishing of any wire and equipment services,

[[Page 246]]

such as salaries of operators, if in the employ of the person furnishing 
such service, charges for equipment, instruments, and other apparatus. 
Where the service rendered includes the furnishing of information or 
programs such as stock market quotations, baseball scores, racing 
results, weather reports, or musical programs, etc., any amounts charged 
for information or programs furnished shall also be included, whether or 
not individual items are charged or billed separately. In cases where a 
person leases lines or channels, equipment, and other facilities used in 
conjunction with wire and equipment service, the amounts paid by such 
person for such lines or channels, equipment, and other facilities 
constitute amounts paid for wire and equipment service, notwithstanding 
the fact that the lines or channels, equipment, and other facilities 
used in conjunction with such service are supplied by different persons 
or in part by the user of such service.
    (d) Relationship to wire mileage service. The tax on wire mileage 
service does not apply in respect of any service which is used 
exclusively in furnishing wire and equipment service. See Sec. 49.4252-
6.
    (e) Exemptions. For exemptions from the tax imposed on amounts paid 
for wire and equipment service, see sections 4253, 4292, 4293, and 4294, 
and the regulations thereunder contained in this part.