Rev. Rul. 64-321

Section 4251 of the Internal Revenue Code of 1954 imposes a tax on amounts paid for certain enumerated communication services, including `wire mileage service' and `wire and equipment service.' The term `wire mileage service' is defined by section 4252(e) of the Code (as amended by the Tax Rate Extension Act of 1962, Public Law 87-508, C.B. 1962-3, 58, effective January 1, 1963) so as to exclude specified services `used in the conduct of a trade or business.' However, in defining the term `wire and equipment service,' section 4252(f) of the Code does not exclude services `used in the conduct of a trade or business.' Therefore, on and after January 1, 1963, a musical program service transmitted by radio channels does not come within the scope of the term `wire mileage service' if the service is used in the conduct of a trade or business. On the other hand, a musical program service which is transmitted from a distribution center to a subscriber's premises wholly or in part by wire or cable continues to come within the scope of the term `wire and equipment service,' as defined by section 4252(f) of the Code, irrespective of whether that service is used in the conduct of a trade or business.