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 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.

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.

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.

SB 1632 – relating to Special Districts
On Friday, April 25th, SB 1632, by Senator Kelli Stargel (R-Lakeland) unanimously passed the Senate chamber. The bill now heads to the House for consideration.

The bill seeks to reorganize chapter 189, F.S., relating to special districts, into eight parts; revises duties of Legislative Auditing Committee; specifies applicability of procedures regarding suspension & removal of member of governing body of special district; revises when special district may be declared inactive; prohibits special districts declared inactive from collecting taxes, fees, or assessments; and provides for costs of litigation & reasonable attorney fees under certain conditions. These bills also require each special district to update and maintain an internet website on which the district must publish extensive information. In addition, the legislation clarifies a special district declared inactive on the unanimous vote of its governing body may be dissolved without a referendum and repeals a part of the Community Improvement Authority Act due to its irrelevance throughout the Act’s duration in statute.

AIF supports common-sense and transparent policy in regards to the creation and enforcement of special districts. In addition, AIF supports legislation that reduces uncertainty and red tape for Florida’s business community.