Communications Services Tax Dead - For Now
We have just received word
that the Department of Revenue (DOR) will not be proceeding with its
proposed rule to impose the communications services tax on substitute
As you may recall from
AIF's previous reports, the rule was written in such a way that it
imposed a costly tax burden on virtually every business in the state.
Any company with a computer network or an in-house telephone system
fell into the grasp of the communications services tax collector.
Thanks to the outcry of
the business community, DOR has realized that the rule would create
an onerous burden on state employers that would ripple disastrously
throughout the economy.
Expect the Legislature
to reconsider the portion of the statutes that requires payment of
the communications services tax on substitute communications systems.
In the next session, lawmakers will be asked either to repeal the
language or redraft it in a way that eliminates the problem embedded
in the statute as it exists now.
The DOR staff deserves
thanks for their willingness to listen to the concerns of the business
community and take the appropriate action. And thank you to all AIF
members who responded to AIF's request for information on the impact
this tax would have had on your business.
516 North Adams Street ● Post Office Box 784 ● Tallahassee, Florida 32302-0784 ● Phone: (850) 224-7173 ● Fax: (850) 224-6532 ● www.aif.com