SB 110 – relating to Communications Services Tax
On Tuesday, February 17th, SB 110, relating to Taxes by Senator Dorothy Hukill (R-Port Orange) unanimously passed the Senate Committee on Communications, Energy, and Public Utilities.
The bill now heads to its second of three stops in the Senate Appropriations Subcommittee on Finance and Tax. AIF’s Senior Vice President, Brewster Bevis, spoke in support of the legislation.
AIF released the following press release Tuesday regarding SB 110’s passage.
AIF Applauds Passage of Legislation to Reduce Communications Services Tax
Tallahassee, Fla. – The Associated Industries of Florida (AIF) today released the following statement attributable to its Senior Vice President of State & Federal Affairs, Brewster Bevis, regarding the advancement of Senate Bill 110, which would reduce the tax rate applied to the sale of communications services, as well as the retail sale of direct-to-home satellite services, sponsored by Senator Dorothy Hukill (R-Port Orange).
“AIF applauds the passage of this good legislation that will reduce the communications services tax and have a positive financial impact on all consumers in Florida who pay for a cell phone, cable or satellite service.
“Broad-based tax cuts, like these, keep money in Floridians’ pockets, and this proposal, championed by Governor Scott, will achieve cost savings for a substantial number of Florida families.
“We look forward to seeing this good policy that cuts taxes succeed this session.”
SB 110, which passed the Senate Committee on Communications, Energy, and Public Utilities, is now slated to be heard in the Senate Committee on Finance and Tax.
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The bill is one of Governor Scott’s priorities for the upcoming session. It reduces the tax rate on the sale of communications services, such as cell phones and satellite television. Currently, Floridians pay a state cell phone and TV tax (CST) rate of 9.17 percent on nonresidential landlines, cell phone, and cable services, and a back-breaking 13.17 percent on satellite services. The bill reduces the state portion of the communications services tax (CST) rate by 3.6 percent from 6.65 percent to 3.05 percent, and the tax rate on direct-to-home satellite services, from 10.8 percent to 7.2 percent. These cuts would save Floridians a combined $470 million annually.
AIF SUPPORTS the Governor’s proposal to reduce the state portion of the communications service tax by 3.6% which applies to business and wireless phone service and cable and satellite television services. The tax rate on communications services is higher than on general sales and makes the communications services expense a significant deterrent for businesses to locate here. The reduction of the state portion is good for Florida businesses and makes Florida more attractive to companies looking to relocate.