tion and information services, burglar alarm or fire alarm service, and all other similar services, but not including service described in subparagraph (A)).

The tax shall apply under this paragraph whether or not the wires or services are within a local exchange area.

(3) LOCAL TELEPHONE SERVICE.-A tax equivalent to 10 per centum of the amount paid by subscribers for local telephone service and for any other telephone service in respect of which a tax is not payable under paragraph (1) or (2). Amounts paid for the installation of instruments, wires, poles, switchboards, apparatus, and equipment shall not be considered amounts paid for service. Service paid for by inserting coins in coin-operated telephones available to the public shall not be subject to the tax imposed by this paragraph, except that where such coin-operated telephone service is furnished for a guaranteed amount, the amounts paid under such guarantee plus any fixed monthly or other periodic charge shall be subject to the tax.

[For wartime increase in rates, see section 1650.]

(b) [SPECIAL WIRE SERVICE IN COMPANY BUSINESS.-]This section shall not apply to the amount paid for so much of the service described in paragraph (2) of subsection (a) as is utilized in the conduct, by a common carrier or telephone or telegraph company or a radio broadcasting station or network, of its business as such.

SEC. 3466. EXEMPTION FROM TAX.

(a) [STATES, TERRITORIES, ETC.-]No tax shall be imposed under section 3465 upon any payment received for services or facilities furnished to any State, Territory of the United States, or political subdivision thereof, or the District of Columbia, or an international organization, or any corporation created by act of Congress to act in matters of relief under the treaty of Geneva of August 22, 1864.

(b) [NEWS SERVICES.-]No tax shall be imposed under section 3465 (a) (1) and (2) upon any payment received from any person for services or facilities utilized in the collection of news for the public press, or a news ticker service furnishing a general news service similar to that of the public press, or radio broadcasting, or in the dissemination of news through the public press, or a news ticker service furnishing a general news service similar to that of the public press, or by means of radio broadcasting, if the charge for such services or facilities is billed in writing to such person. Section 3465 (a) (3) shall not be construed as imposing a tax on services and facilities described in section 3465 (a) (1) or (2) which are exempt from tax under this subsection.

(c) [REGULATIONS.-]The right to exemption under this section shall be evidenced in such manner as the Commissioner with the approval of the Secretary may by regulation prescribe.

[For power of the Secretary to authorize additional exemptions as to services purchased for the exclusive use of the United States, see section 307 (c) of the Revenue Act of 1943 (58 Stat. 66), as amended by section 303 of the Revenue Act of 1945 (59 Stat. 576).]

SEC. 3467. RETURNS AND PAYMENT.

(a) [TAXPAYER.-]The taxes imposed by section 3465 shall be paid' by the person paying for the services or facilities.

(b) [COLLECTION, RETURN, AND PAYMENT.-]Each person receiving any payments specified in section 3465 shall collect the amount of the tax imposed by such section from the person making such payments, and shall on or before the last day of each month make a return, under oath, for the preceding month, and pay the taxes so collected, to the collector of the district in which his principal place of business is located, or, if he has no principal place of business in the United States, to the collector at Baltimore, Maryland. Such returns shall contain such information and be made in such manner as the Commissioner with the approval of the Secretary may by regulation prescribe.. The Commissioner may extend the time for making returns and paying the taxes collected, under such rules and regulations as he shall prescribe with the approval of the Secretary, but no such extension shall be for more than 90 days.

[For postponements by reason of war, see section 3804.] SEC. 3468. CROSS REFERENCE.

For enforcement of liability for taxes collected, see section 3661.
SUBCHAPTER C-TRANSPORTATION OF PERSONS

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SEC. 3469. TAX ON TRANSPORTATION OF PERSONS, ETC. (a) TRANSPORTATION.-There shall be imposed upon the amount paid within the United States for the transportation, on or after October 10, 1941,1 of persons by rail, motor vehicle, water, or air, within or without the United States, a tax equal to 10 per centum of the amount so paid. The tax shall not apply with respect to transportation any part of which is outside the northern portion of the Western Hemisphere, except with respect to any part of such transportation which is from any port or station within the United States, Canada, or Mexico to any other port or station within the United States, Canada, or Mexico. A port or station within Newfoundland shall not, for the purposes of the preceding sentence, be considered as a port or station within Canada. For the purposes of this section, the words "northern portion of the Western Hemisphere" mean the area lying west of the 30th meridian west of Greenwich, east of the International Date Line, and north of the equator, but not including any country of South America. Such tax shall apply to transportation by motor vehicles having a passenger seating capacity of less than ten adult passengers, including the driver, only when such vehicle is operated on an established line.

[For wartime increase in rates, see section 1650.]

(b) EXEMPTION OF CERTAIN TRIPS.-The tax imposed by subsection (a) shall not apply to amounts paid for transportation which do not exceed 35 cents, to amounts paid for commutation or season tickets for single trips of less than 30 miles, or to amounts paid for commutation tickets for one month or less.

(c) SEATS, BERTHS, ETC.-There shall be imposed upon the amount paid within the United States for seating or sleeping accommodations The statute reads "such effective date," referring to "October 10, 1941," here omitted.

in connection with transportation with respect to which a tax is imposed by subsection (a) a tax equivalent to 10 per centum of the amount so paid.

[For wartime increase in rates, see section 1650.]

(d) RETURNS AND PAYMENT.-The taxes imposed by this section shall be paid by the person making the payment subject to the tax. Each person receiving any payment specified in subsection (a) or (c) shall collect the amount of the tax imposed from the person making such payment, and shall, on or before the last day of each month, make a return, under oath, for the preceding month, and pay the taxes so collected to the collector in the district in which his principal place of business is located, or, if he has no principal place of business in the United States, to the collector at Baltimore, Maryland. Such returns shall contain such information and be made in such manner as the Commissioner with the approval of the Secretary may by regulations prescribe.

(e) EXTENSIONS OF TIME.-The Commissioner may extend the time for making returns and paying the taxes collected, under such rules and regulations as he shall prescribe with the approval of the Secretary, but no such extension shall be for more than 90 days. (f) EXEMPTIONS.

(1) GOVERNMENTAL EXEMPTION.-The tax imposed by this section shall not apply to the payment for transportation or facilities furnished to any State, Territory of the United States, or political subdivision thereof, or the District of Columbia, or an international organization, or any corporation created by act of Congress to act in matters of relief under the treaty of Geneva of August 22, 1864.

[For power of the Secretary to authorize exemptions as to services purchased for the exclusive use of the United States, see section 307 (c) of the Revenue Act of 1943 (58 Stat. 66), as amended by section 303 of the Revenue Act of 1945 (59 Stat. 576).]

SUBCHAPTER D-ADMINISTRATIVE PROVISIONS

SEC. 3470. PAYMENT OF TAXES.

The taxes imposed by this chapter shall, without assessment by the Commissioner or notice from the collector, be due and payable to the collector at the time fixed for filing the return. If the tax is not paid when due, there shall be added as part of the tax interest at the rate of 6 per centum per annum from the time the tax became due until paid.

SEC. 3471. REFUNDS AND CREDITS.

(a) [ALLOWANCE.-]Credit or refund of any overpayment of tax imposed by subchapter B, subchapter C, or subchapter E may be allowed to the person who collected the tax and paid it to the United States if such person establishes, to the satisfaction of the Commissioner, under such regulations as the Commissioner with the approval of the Secretary may prescribe, that he has repaid the amount of such tax to the person from whom he collected it, or obtained the consent of such person to the allowance of such credit or refund.

(b) [CREDIT IN LIEU OF REFUND.-JAny person entitled to refund of tax under this chapter paid, or collected and paid, to the United States by him may take credit therefor against taxes due upon any monthly return.

(c) [REFUNDED PAYMENTS.-]Any person making a refund of any payment on which tax under subchapter B, subchapter C, or subchapter E has been collected, may repay therewith the amount of tax collected on such payment, and the amount of tax so repaid may be credited against the tax under any subsequent return.

[Section 620 (b) of the Revenue Act of 1942 (56 Stat. 980) amends I. R. C. 3471 by substituting “Subchapter C, or Subchapter E" for "or Subchapter C" in "(a) and (b)." Since the words "or Subchapter C" do not appear in (b) but do appear in (c), it is believed that Congress intended to amend (a) and (c) rather than (a) and (b), and the text above follows the apparent intent of Congress rather than the actual words of the amending act.]

SEC. 3472. REGULATIONS.

The Commissioner, with the approval of the Secretary, shall prescribe and publish all needful rules and regulations for the enforcement of this chapter.

SEC. 3473. APPLICABILITY OF ADMINISTRATIVE PROVISIONS.

All provisions of law (including penalties) applicable in respect of the taxes imposed by section 1700 shall, in so far as applicable and not inconsistent with this chapter, be applicable in respect of the taxes imposed by this chapter.

SUBCHAPTER E-TRANSPORTATION OF PROPERTY

SEC. 3475. TRANSPORTATION OF PROPERTY.

(a) TAX.-There shall be imposed upon the amount paid within the United States after the effective date of this section for the transportation, on or after such effective date, of property by rail, motor vehicle, water, or air from one point in the United States to another, a tax equal to 3 per centum of the amount so paid, except that, in the case of coal, the rate of tax shall be 4 cents per short ton. Such tax shall apply only to amounts paid to a person engaged in the business of transporting property for hire, including amounts paid to a freight forwarder, express company, or similar person, but not including amounts paid by a freight forwarder, express company, or similar person for transportation with respect to which a tax has previously been paid under this section. In the case of property transported from a point without the United States to a point within the United States the tax shall apply to the amount paid within the United States for that part of the transportation which takes place within the United States. The tax on the transportation of coal shall not apply to the transportation of coal with respect to which there has been a previous taxable transportation.

[Section 3475 took effect on December 1, 1942.]

(b) EXEMPTION OF GOVERNMENT TRANSPORTATION.-The tax imposed under this section shall not apply to (1) amounts paid for the transportation of property to or from the government of a State, Territory of the United States, or political subdivision thereof, or the

District of Columbia, or an international organization, or any corporation created by act of Congress to act in matters of relief under the treaty of Geneva of August 22, 1864, (2) amounts paid to the Post Office Department for the transportation of property, or

* * *

[For power of the Secretary to authorize exemptions as to services purchased for the exclusive use of the United States, see section 307 (e) of the Revenue Act of 1943 (58 Stat. 66), as amended by section 303 of the Revenue Act of 1945 (59 Stat. 576).J

(c) RETURNS AND PAYMENT.-The tax imposed by this section shall be paid by the person making the payment subject to the tax. Each person receiving any payment specified in subsection (a) shall collect the amount of the tax imposed from the person making such payment, and shall, on or before the last day of each month, make a return, under oath, for the preceding month, and pay the taxes so collected to the collector in the district in which his principal place of business is located, or, if he has no principal place of business in the United States, to the collector at Baltimore, Maryland. Such returns shall contain such information and be made in such manner as the Commissioner with the approval of the Secretary may by regulations prescribe.

(d) EXTENSIONS OF TIME.-The Commissioner may extend the time for making returns and paying the taxes collected, under such rules and regulations as he shall prescribe with the approval of the Secretary, but no such extension shall be for more than 90 days. (e) REGISTRATION. Every person engaged in the business of transporting property for hire, including freight forwarders, express companies, and similar persons, shall, * * * within 60 days after first engaging in the business of transportation of property for hire, register his name and his place or places of business with the collector in the district in which is located the principal place of business of such person. Every such person who fails to register within the period specified shall be guilty of a misdemeanor and upon conviction thereof shall be fined not more than $50.