“Local governments rely on revenue sources like the Communications Services Tax to provide critical municipal services and keep communities safe, which is why it was disappointing today to see the Senate Innovation, Industry, and Technology Committee unanimously pass SB 1174 and potentially put Floridians at risk.
This bill would reduce the local CST rate to 4 percent, eliminate the local option sales taxes on communications services that may have been approved by local voters for specific purposes, and deprive cities of a vital funding source for police, fire and more.
The League has supported revenue-neutral modernization of this tax for several years, however, this bill would cut local revenues by $190 million without any plan to recoup the lost dollars. This bill is a wolf in sheep’s clothing and will provide a minimal amount of savings to consumers. Meanwhile, it gives the communications providers cover to raise the rates for their services, potentially exceeding the savings the bill promises to consumers.”