[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: 26CFR49.4253-9]

[Page 249]
 
                       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. 49.4253-9  Exemption for certain interior communication systems.

    (a) In general. The taxes imposed by section 4251 do not apply to 
amounts paid for wire mileage service or wire and equipment service, if 
such service is rendered through the use of an interior communication 
system.
    (b) Interior communication system. The term ``interior communication 
system'' means any system:
    (1) No part of which is situated off the premises of the subscriber, 
and which may not be connected, directly or indirectly, with any 
communication system any part of which is situated off the premises of 
the subscriber; or
    (2) Which is situated exclusively in a vehicle of the subscriber and 
which is not connected with a communications system.
    (c) Examples. The following are examples of interior communication 
systems:

    (1) Burglar, fire, or other alarm service, where the service 
consists of lines or channels and equipment which are contained solely 
in the building of the subscriber, and by means of which an alarm is 
sounded in the building in the case of illegal entry, fire, leakage, 
etc.
    (2) Metering services, including lines or channels and equipment, 
furnished between two points which are located upon the subscriber's 
property, and which are not separated by property not owned or leased by 
the subscriber, over which signals are transmitted so that the 
subscriber may obtain information as to a given condition at one of the 
points, such as water level, water pressure, gas pressure, etc.