SB 898 – relating to Communications Services Tax
On Tuesday, April 22nd, SB 898, relating to Communications Services Tax, by Senator Joseph Abruzzo (D-Wellington) unanimously passed the Senate Committee on Appropriations. AIF Senior Vice President of State and Federal Affairs, Brewster Bevis, stood in support of the bill during the committee. The bill now heads to the Senate floor.

This bill, brought to the attention of the legislature by the hotel and lodging industry, intends to relieve hoteliers, both large and small, from erroneous application of the Communications Services Tax (CST) by the Florida Department of Revenue on hotels, their franchises and properties. Specifically, the bill provides clarification that certain communications over the internet do not make a hotel a provider of communications services and thus those communications are not subject to the CST.  

AIF supports this bill because the impact of the state’s tourism industry, along with the lodging industry, affects every corner of the state and further and erroneous taxation of the hotel and lodging industry can only harm local economies.

SB 294 – relating to Emergency Communication System
On Tuesday, April 22nd, SB 294, relating to Emergency Communication System, by Senator Alan Hays (R-Umatilla) unanimously passed the Senate Committee on Appropriations. AIF Senior Vice President of State and Federal Affairs, Brewster Bevis, stood in support of the bill during the committee. The bill now heads to the Senate floor.

The bill would reduce the current charge for 911 services on all phone lines, including mobile. In addition, the legislation implements the findings of the E911 Board, allowing for the collection of the 911 fee at the retail point of sale for prepaid wireless phone plans. Implementing a point of sale collection method for prepaid plans and enabling the fee to be collected from everyone with access to 911 may make it possible to reduce the fee for all consumers. The bill would also put priority on allowing counties to use funds to upgrade and replace 911 systems for next generation.

AIF supports lessoning the 911 surcharge on Florida’s phone users as well as supports a robust and modern emergency communications system vital to the welfare of Florida’s business community.

HB 5601 – relating to Economic Development
On Tuesday, April 22nd, HB 5601, relating to Economic Development, by House Finance & Tax Subcommittee, Senator Dorothy Hukill (R-Port Orange), and Representative Ritch Workman (R-Melbourne) unanimously passed the Senate Committee on Appropriations. AIF stood in support of the bill during the committee. The bill now heads to the Senate floor.

The bill provides a broad range of tax cuts and spending aimed at either directly or indirectly encouraging economic development. The bill incorporates provisions from a handful of other bills AIF has been advocating this session. Specifically, the bill includes tax holidays for consumers, an increase in the corporate tax exemption, a sales tax exemption for machinery and equipment, modernization of communication services taxes, and the Commissioner of Agriculture’s priority of reducing the sales tax on electrical usage for businesses while increasing revenues for the Public Education Capital Outlay fund. AIF has been advocating for all of these provisions individually throughout the 2014 legislative session.

AIF supports reducing the tax burden on Florida’s businesses and any measure that will make the state more attractive for conducting business.