Telecommunication Tax Relief In Florida

Florida cell phone customers would get relief from some of the taxes on their monthly bills under legislation filed by Representative Kim Berfield (R-Clearwater) and Senator Dave Aronberg (D-Greenacres). The legislation would lower the state communications services tax from 9.17% to 6%, the same rate as the state sales tax, over a three-year period. The reduction would cut state taxes on wireless, long distance, and business telecommunications services as well as cable and satellite television services.

"This bipartisan bill will benefit almost every household and business in Florida by rolling back the excessive taxes imposed on services that are such an important part of our daily lives," said Representative Berfield.

"Communications services in Florida are subject to a combination of federal, state, and local taxes that reach 20% in some parts of the state," Senator Aronberg said. "That's a regressive tax, and it's way too high. Our bill brings fairness to our confusing telecommunications tax formulas."

Senator Aronberg said that Greenacres wireless customers pay 19.91% total in taxes on their monthly wireless bill when state and local taxes are combined with the federal tax, as compared to a 6.5% state and local sales tax when they make general retail purchases.

In addition to lowering costs for consumers, the bill's sponsors also hope to benefit Florida businesses faced with high taxes in the state. "This legislation will reduce the cost of doing business and help make Florida a more attractive place to locate and grow a business," according to Berfield.

Representative Berfield's bill, HB 1339, is pending in the House of Representatives. Senator Aronberg's bill, SB 2008, is pending in the Senate.

Consumer advocacy organization MyWireless.orgis supporting these efforts to reduce consumers' wireless taxes.