[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: 26CFR49.4253-6]

[Page 248]
 
                       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. 49.4253-6  Exemption for common carriers and communications companies.

    (a) In general. (1) The taxes imposed by section 4251 on amounts 
paid for wire mileage service and wire and equipment service do not 
apply to amounts paid for any such services to the extent that the 
amounts paid are for services utilized by a common carrier, telephone or 
telegraph company, or television or radio broadcasting station or 
network in the conduct of its business as such.
    (2) The tax imposed by section 4251 on amounts paid for general 
telephone service does not apply to amounts paid for the use of a 
continuous telephone or radio telephone line or channel to the extent 
that the amounts paid are for use by a common carrier, telephone or 
telegraph company, or television or radio broadcasting station or 
network in the conduct of its business as such, if such line or channel 
connects stations between any two of which there would otherwise be a 
toll charge. A line or channel connects stations between which there 
would otherwise be a toll charge if the telephone company makes a toll 
charge for a single message transmitted between the two stations in the 
case of the ordinary residential and business or commercial telephone 
service. A line or channel connecting two stations is considered a 
continuous line or channel if such line or channel does not connect with 
any switchboard interposed between the two stations, which makes it 
possible to carry on two or more independent conversations 
simultaneously. Where a line or channel connects with such a 
switchboard, the exemption is inapplicable to so much of the amount paid 
as is attributable to the portion of the line or channel which extends 
from a station to a switchboard located in the same local service area.
    (b) Exemption inapplicable. This particular exemption is not 
applicable in the case of the taxes imposed on amounts paid for other 
services by section 4251, even though such services are utilized by the 
companies described in the conduct of their business as such.