James Call
Gov. Rick Scott’s call for to cut in half the Communications Services Tax got a unanimous send off at its first committee stop Tuesday; a Senate committee approved a 3.6 percent cut dropping it to 3 percent. Sen. Dorothy Hukill is sponsoring SB 110.
Scott called for the cut in his budget recommendation last month, saying it would save consumers $470 million.
“I am proud to have the support of my colleague in the Senate Communications, Energy and Public Utilities Committee in providing broad-base tax relief that will put money back into the pockets of Florida families and businesses,” said Hukill. “With Floridians relying greatly on cellphone to stay connected to one another, reducing this tax will deliver monthly relief to all citizens across our state.”
Economists estimated the cut will save the average household about $43-a-year. The CST is a mixture of federal, state and local taxes. It differs across the state and can be as high as 22.5 percent. It is levied on cell phone, cable and satellite television.
Florida TaxWatch entered the debate Tuesday on the governor’s side. The government spending watchdog group issued a report concluding Scott’s proposal would help attract business to the state.
“For years we have recommended that the Legislature reduce this highly burdensome and regressive tax on consumers and businesses,” said Dominic M. Calabro, TaxWatch CEO. “Florida’s unfairly high Communications Services Tax is punitive and makes the state less attractive to businesses the state is trying to recruit to provide high-skill, high-wage jobs to its residents.”
Associated Industries of Florida cheered the committee vote on Hukill’s bill.
“AIF applauds the passage of this good legislation that will reduce the communications services tax and have a positive financial impact on all consumers in Florida who pay for a cell phone, cable or satellite service,” Brewster Bevis, an AIF vice president, said.
Scott applauded the release of the TaxWatch report.
“We understand that Florida families know how to spend their money better than government, and cutting taxes gives Floridians and businesses more opportunities to help our economy thrive,” Scott said in a prepared statement. “As Florida TaxWatch’s report demonstrates, our cell phone and TV tax cut will save money for families across the state.”
Hukill’s bill now heads to the Finance and Tax Committee.
You can read the TaxWatch report here.
