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Daily Legislative Brief from April 23, 2014

Taxation

HB 803 – relating to Communications Services Tax
On Wednesday, April 23rd, HB 803, relating to Communications Services Tax, by Representative Jim Boyd (R-Bradenton) unanimously passed the House chamber. The bill now heads to the Senate for consideration.

The bill seeks to clarify that the state’s Communications Service Tax (CST) is not applicable to communications between hotels and their franchises.  Recently, the state’s Department of Revenue (DoR) began auditing various hotels, large and small, and assessing the CST despite having no statutory direction to do so.  HB 803 is a consensus product between the state’s DoR and the hotel lodging industry that seeks to clarify that these charges are not applicable.  The bill was scored to be revenue neutral for the state.

AIF supports reducing communication services taxes on Florida’s businesses. Subsequently, businesses could utilize this tax savings to reinvest in their business.