TaxWatch: Floridians could save $128 million from this one tax cut
A nonprofit research institute focused on Florida taxpayers is once again backing a decrease in the state’s communications services tax (CST) rate.
Florida TaxWatch highlighted a policy brief Monday that suggests the CST rate is a “burdensome and highly regressive tax on consumers.”
“Florida’s CST is very high, relative to both other states and the sales tax on the purchase of other goods,” reads the brief.
“This high rate makes the tax punitive and distortionary and makes the state less competitive than other states, including the potential for reducing investment in broadband network infrastructure.”
The report charges that “the CST is a tax on consumers, not communications services providers.”
TaxWatch is supporting two pieces of legislation that would reduce components of the CST, which varies across the state because local governments can levy different tax amounts on services from cell phones to satellite television.
Two bills currently moving through the Legislature would reduce the general communications services tax rate by a point, from 4.92 percent to 3.92 percent. The proposals would also reduce the direct-to-home satellite services tax from 9.07 percent to 8.07 percent.
TaxWatch said the proposed reductions in the CST rate would save