James CallA measure that could help Gov. Rick Scott fulfill his promise to cut taxes by $670 million continues to roll through the Legislature. The Senate Finance and Tax Committee on Monday approved on a 7-0 vote to reduce a communications tax by 3.6%.
“This is broad-based and consumer friendly,” said Sen. Dorothy Hukill who is sponsoring the $431 million tax cut. “Florida has the highest (communication) tax rate in the nation.”
SB 110 would reduce the communications services tax consumers play on cellphone, cable and satellite dish services. Florida’s combination of state and local taxes on those services ranks fourth in the nation, according to the Tax Foundation.
“Is there any guarantee the savings will be passed on to consumers?” said Democratic Minority Whip Darren Soto of Orlando.
“It is my understanding the providers are going to be very excited about tax relief to the people who purchase their services,” Hukill said. “This is the tax portion. It is not the company who pays the tax. The company collects the tax; we, the consumer, pays the tax.”
State economists determined the measure would reduce the General Revenue Fund by $431 million in 2015-2016. It would cost local governments about $200,000, statewide.
“Can we afford it?” Soto asked.
“That’s a good question,” said Hukill, adding that she intends to make sure a cut in the communications tax is part of any tax relief package approved this year.
