This year, a communications tax cut being proposed by lawmakers could make the wallets of Floridians a bit thicker.
The bills, filed by Sen. Travis Hutson (R-St. Augustine) and Rep. Jason Fischer (R-Jacksonville), aim to set the maximum communications services tax, starting Sept. 1, for charter counties and municipalities at 5 percent. Then at the beginning of 2022, it would sink to 4 percent. The rate for non-charter counties is slated to be 2 percent beginning Jan. 1, 2022.
These taxes, which often show up on cell phone, internet, and cable bills, disproportionately impact low-income families in Florida, which has the ninth-highest communications tax rate in the U.S. In total, the people and businesses of the state pay $1.76 billion annually in communications services taxes.
According to one particular study, every dollar saved on connectivity services improves economic welfare by $1.95.
Both cities and counties currently set their own communications tax rates, and this fact has led to the formation of more than 400 different jurisdictions. In many cases, communication tax rates are two-and-a-half times higher than sales taxes.
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