HB 303: Communications Services Tax

• Reduces the communications services tax rate from 10.65% to 6.65% on most retail communications services, with additional gross receipts tax at 2.37% for a combined rate change.

• Eliminates the separate tax on direct-to-home satellite services (previously 10.8%) by repealing sections 202.19, 202.20, and 202.22 relating to local communications services taxes.

• Deletes the exemption for communications services sold to residential households, making such services taxable alongside business services.

• Requires local governments receiving 110% or more of fiscal year 2012-2013 local communications tax revenues to reduce ad valorem tax mileage rates to offset increases, or adopt a resolution to opt out of the offset requirement by December 1, 2014.

• Takes effect October 1, 2013, applying to communications services reflected on bills dated on or after that date.