CFR > Title 26 - Internal Revenue > CHAPTER I—INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY > SUBCHAPTER D—MISCELLANEOUS EXCISE TAXES (Parts 40–158) > PART 49—FACILITIES AND SERVICES EXCISE TAXES > SUBPART C—Communications (§49.4251-1 to §49.4254-2) > 49.4253-9—Exemption for certain interior communication systems.

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.