Florida looking to lower taxes on cell phones

Plans to Cut Florida's Phone Usage Taxes

Florida cell phone customers would get relief from some of the taxes on their monthly bills under legislation filed by Representative Kim Berfield and Senator Dave Aronberg. 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.