Some lawmakers consider it is the kind of direct relief largely absent from the Gov. Rick Scott's call for $618 million in tax cuts, which primarily benefit the corporations.
Under SB 378, filed on Friday by Sen. Anitere Flores (R-Miami), the Florida's communications services tax would be reduced by 2 percent. The tax was cut by 1.73 percent in the year 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 tax cut would be modest, saving an average Floridian between $20 to $30 per a year. But, unlike most of the tax cuts in the governor's package, it would be broad-based and benefiting anyone with a cell phone, a cable bill or both.
The Florida State University freshman Judy Shin said that, the legislation "(It's) not a big difference, but a difference. I mean, like, a dollar is a dollar!"
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At the legislative hearings on Scott's tax cuts, some of his fellow Republicans have questioned that why the corporate income tax and a sales tax on the commercial leases would be in the line for reductions, but not the increasing property tax burden felt by the most homeowners.
The critics said that, while a back-to-school sales tax holiday could help the families to save money on books and clothing, and other opportunities to provide direct middle class tax relief are insufficient or altogether absent.
After the years of championing billions of dollars worth of business-focused tax cuts he predicted would result in the large-scale economic reinvestment and higher state revenues, Scott is grappling with a difficult reality. The state economists are now reporting that the revenues have plummeted so precipitously a budget deficit of $750 million or even 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 the Scott's tax cut proposal, cutting the communications services tax would be fully funded by eliminating the insurance industry tax break. That, combined with the favorable optics of reducing the tax borne by millions of Floridians, could make for an easier sell in the Tallahassee.
Florida’s Communications Services Tax, according to the Florida Dept. of Revenue, the CST is imposed on a wide variety of community services.
On local, and long distance phone service: the Florida tax rate of 7.44 percent.
On mobile communications and video services (which also includes cable TV): the Florida tax rate of 7.44 percent.
On direct-to-home satellite service: Florida tax rate is 11.44 percent
There is also the local communications tax whose tax varies.
Mrudula Duddempudi.
