SB 712 – relating to Taxes on Prepaid Calling Arrangements
On Thursday, April 24th, SB 712, relating to Taxes on Prepaid Calling Arrangements, by Senator Bill Galvano (R-Bradenton) 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 revises the definition of the term “prepaid calling card” for purposes of the Communications Services Tax (CST) and the sales tax. The primary effect of the bill is to include mobile communications services that meet specified conditions. The bill also provides that if a purchaser of a prepaid calling arrangement has paid sales tax on the sale or recharge of such arrangement, no additional sales tax or CST tax is due or payable if the purchaser applies one or more units of the prepaid calling arrangement to obtain communications services that are provided to or through the same handset or other electronic device that is used by the purchaser to access mobile communications services, other services that are not communications services, or products.

AIF supports clarification that prepaid calling arrangements, such as wireless phones purchased at retail stores, should be taxed as tangible personal property.