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Florida TaxWatch Supports Cable, Cell Phone Tax Cuts
February 18, 2015
Easing the tax burden for Florida families and businesses would also attract business investment, create Florida jobs and grow the state’s information-based economy, according the latest Florida TaxWatch Economic Commentary. The report highlights the state’s Communications Services Tax, which is the fourth highest in the nation.
The Communications Services Tax is levied on cell phone, cable and satellite television and non-residential landline phone service, and can be as high as 22.59 percent for Floridians. The tax differs across the state, and is comprised of a standard federal fee, a uniform statewide tax and a varying local tax.
However, Florida taxpayers may soon have lower bills if the Governor’s proposal to reduce the state’s communications services tax is accepted by the Legislature. Governor Rick Scott plans to reduce the state portion of the tax to 5.57 percent from 9.17 percent. The 3.6 percent reduction would result in $470.9 million in annual savings for taxpayers.
“I applaud the Governor for his leadership and commitment to reducing taxes for all Floridians, especially those families, seniors and residents on very modest incomes,” said Dominic M. Calabro, President and CEO of Florida TaxWatch. “For years we have recommended that the Legislature reduce this highly burdensome and regressive tax on consumers and businesses. 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.”
The Communications Services Tax is more than twice the highest state and local general sales tax rate in Florida. This year, it is expected to bring more than $2.1 billion in revenue to Florida’s state and local governments.
Comments
2 Responses to “Florida TaxWatch Supports Cable, Cell Phone Tax Cuts”
I believe the taxes on cell phone and cable are
to high. I support lowering them.
I believe that Florida taxes on cell phone and cable are too high and support efforts to lower them.