The Communications Services Tax Working Group held its final meeting on Monday, January 28, 2013, via teleconference to finalize the report. The workgroup was created during the 2012 legislative session and charged with reviewing and studying tax issues related to the sale of the Communications Services Tax. The purpose of these meetings is to develop and submit a report that will be presented to the Governor, President of the Senate and the Speaker of the House of Representatives by February 1, 2013.
CST Working Group Report
After reviewing numerous options intended to improve the current system, the Working Group concluded that the best approach to modernize the tax structure would be to repeal the
Communications Services Tax and bring all communications services under an increased sales and use tax under Chapter 212, F.S. This approach, termed the “Holistic Replacement” option will:
1) Promote competitive neutrality between communications providers;
2) Tax like goods and services the same;
3) Resolve the current dispute over the taxation of prepaid wireless service;
4) Streamline the administrative system;
5) Be revenue neutral for the governmental entities;
6) Will reduce the tax burden for the “typical” Florida taxpayer and “typical” small business, and
7) Provide a more reliable and stable revenue stream.
The Holistic Replacement option represents the consensus option of the Working Group. All eight voting members supported this option, which include the four members representing industry and the four members representing local government. The members representing local governments conditioned their support upon the option being revenue neutral.
The Florida Association of Counties (FAC) has two representatives appointed to the workgroup. The representatives are:
- Davin J. Suggs, Senior Legislative Advocate, Florida Association of Counties
- Alan S. Rosenzweig, Deputy County Administrator, Leon County
FAC adopted a policy statement relating to CST in November at the Legislative Conference.
SUPPORT amending and/or revising current law in a manner that is:
1) revenue neutral;
2) simplifies administration and collection of the current tax;
3) provides for a broad and equitable tax base;
4) provides for the enhanced stability and reliability as an important revenue source for local government; and provides for the opportunity for market-based growth
FAC staff will continue to monitor any bills and legislation that relate to the CST during session.
For More Information
Please visit http://dor.myflorida.com/dor/cst_workgroup/ for more information on the workgroup including:
- A complete listing of Task Force and workgroup members;
- Meeting Agendas
- Meeting Materials;
- Meeting Transcripts;
- Future Meeting Dates and Times;
- CST Working Group Draft Report
To share any feedback regarding the materials and information on the CST website contact:
Andrea Moreland, Director Office of Legislative & Cabinet Services, Florida Department of Revenue at CST Working Group .