In a move sure to ire the insurance industry, state Sen. Anitere Flores is proposing a cut in the state tax on mobile phone and satellite and cable TV service by repealing a tax break to insurers.
Flores, the Senate President pro Tempore, on Friday said she was filing legislation (SB 378) to swap the insurance break for a 2 percent reduction in the state’s communications services tax (CST). The proposal is a priority of Senate President Joe Negron, a Stuart Republican.
The move also aligns with Gov. Rick Scott‘s and the Florida House’s appetite for continued tax relief. Flores’ proposal “could provide $300 million in recurring tax relief for families and businesses,” according to a news release.
“Florida’s CST is one of the highest in the nation,” said Flores, a Miami-Dade Republican. “In 2015, we made great progress by permanently reducing Florida’s CST by 1.73 percent. This year, we can reduce this burdensome tax even further and provide additional monthly savings to every Floridian with a cell phone or cable or satellite TV.”
The state’s communications services tax charges “direct-to-home satellite service” at a total rate of 11.44 percent. Cable TV, however, is taxed at a total of 7.44 percent; the state reduced the CST on that two years ago.
In 2013, Negron tried to get rid of the now 30-year-old tax break to insurance companies, at the time was worth around $225 million, to decrease automobile fees.
The insurance industry helped kill that effort in the House. Fees were later reduced without scuttling the tax break.
But Negron earlier this year said he was again looking to eliminate the insurance deal this year, a 15 percent tax credit on the salaries that insurers give their full-time workers here in the state. “The same benefit is not provided for other industries.” he said in a statement.
“When originally put in place thirty years ago, this taxpayer-funded subsidy for insurance companies was well intentioned, but times have changed and we need to reprioritize,” Negron said. “We can take the revenue we save from eliminating a tax credit that only benefits one industry and use it to provide a meaningful, monthly, and permanent tax cut for Florida’s families and businesses.”
We’ll add reaction from the state’s insurers when we receive it.