A high-profile Miami senator wants to say “bye bye” to Florida’s high cell phone and TV taxes, filing legislation to cut both during this year’s legislative session and replace them with a smaller tax.
Senate President Pro Tempore Anitere Flores, R-Miami, filed a proposal, SB 378, Friday to to repeal the insurance premium tax credit on cell phones and TVs, which would be replaced by a two percent reduction in the communications service tax.
The CST is currently placed on cell phones, non-residential landline phone services and cable and satellite televisions. Tax rates vary around the state, with some cities in Florida having rates as high as 7 percent.
State lawmakers say providing the tax cut can help average Floridians. Since 1987, Florida has given a tax credit that insurance companies can take against their premium tax liability of up to 15 percent of salaries paid to employees located or based within Florida. Other industries are not given the same benefit.
“In 2015, we made great progress by permanently reducing Florida’s CST by 1.73 percent,” said Flores. “This year, we can reduce this burdensome tax even further and provide additional monthly savings to every Floridian with a cell phone or cable or satellite TV.”
Senate President Joe Negron, R-Stuart, said the time was now to alter the tax subsidy.
“Times have changed and we need to reprioritize,” Negron said.
Negron said Florida would take the revenue from eliminating the tax credit and could use it for a permanent tax for Florida businesses.
Flores agreed.
“This bill will rid our state of an antiquated government subsidy for a specific industry, and instead keep more money in the pockets of the hard-working Floridians who earn it,” she said, adding that reducing taxes would lead to private sector job creation.
“As Florida’s economy grows, we must continue to search for ways to reduce the tax burden on families and businesses across our state,” Negron said. “As just one component of a comprehensive tax relief package, this proposal alone could provide $300 million in recurring tax relief for families and businesses in addition to the significant savings generated by proposals advocated by Governor Scott and options filed in the Senate and the House.”
Reach reporter Allison Nielsen by email at allison@sunshinestatenews.com or follow her on Twitter: @AllisonNielsen.
