Florida Senate Republicans are moving to slash the state's cell phone and cable TV taxes.
- Lawmakers to consider Florida communications services tax cut
- SB 378 would cut CST by 2 percent
Some lawmakers say it's the kind of direct relief largely absent from Gov. Rick Scott's call for $618 million in tax cuts, which primarily benefit corporations.
Under SB 378, filed Friday by Sen. Anitere Flores (R-Miami), Florida's communications services tax would be reduced by 2 percent. The tax was cut by 1.73 percent in 2015 but currently remains among the nation's highest.
"This tax relief package continues our commitment to reducing the tax burden facing Florida families and businesses," Flores said in a statement. "Reducing taxes leads to private sector job creation and a flourishing economy that benefits all Floridians."
The impact of the proposed cut would be modest, saving an average Floridian between $20 to $30 a year. But, unlike most of the cuts in the governor's package, it would be broad-based, benefiting anyone with a cell phone, a cable bill or both.
"(It's) not a big difference, but a difference," Florida State University freshman Judy Shin said of the legislation. "I mean, like, a dollar's a dollar!"
At legislative hearings on Scott's tax cuts, some of his fellow Republicans have questioned why the corporate income tax and a sales tax on commercial leases would be in line for reductions, but not the increasing property tax burden felt by most homeowners.
While a back-to-school sales tax holiday could help families save money on books and clothing, other opportunities to provide direct middle class tax relief are insufficient or altogether absent, critics say.
And after years of championing billions of dollars worth of business-focused tax cuts he predicted would result in large-scale economic reinvestment and higher state revenues, Scott is grappling with a difficult reality. State economists are now reporting that revenues have plummeted so precipitously a budget deficit of $750 million or more is on the immediate horizon.
For now, Scott is sticking to his talking points.
"They buy more equipment, put more money into research, marketing," he said of the anticipated supply side effects of tax cuts. "That ultimately adds up to more jobs."
But unlike Scott's tax cut proposal, cutting the communications services tax would be fully funded by eliminating an insurance industry tax break. That, combined with the favorable optics of reducing a tax borne by millions of Floridians, could make for an easier sell in Tallahassee.
"It's just, like, extra money!" Shin said with a smile.
Florida Communications Services Tax
According to the Florida Dept. of Revenue, the CST is imposed on a wide variety of community services.
- Local, long distance phone service: Florida tax rate of 7.44 percent
- Mobile communications and video services (which includes cable TV): Florida tax rate of 7.44 percent
- Direct-to-home satellite service: Florida tax rate of 11.44 percent