SB 1422 - Communications Services Tax Summary

• Consolidates Florida's communications services tax into a unified state tax by increasing the rate from 6.65% to 10.65% and eliminating separate local communications services taxes previously authorized under former s. 202.19.

• Eliminates the separate 10.8% tax on direct-to-home satellite services and includes satellite service under the unified 10.65% tax rate.

• Removes the residential household exemption from communications services taxes that previously applied except to mobile services, video services, and satellite services.

• Reallocates tax revenues so that 55% of remaining proceeds go to local governments (after deducting gross receipts taxes) and 45% go to the state, requiring local governments receiving 110% or more of prior year revenue to reduce ad valorem tax rates or adopt a resolution to opt out of the offset.

• Repeals local authority to levy separate communications services taxes and removes permit fee authority for communications service providers using public roads and rights-of-way, with provisions for revenue replacement for bonded indebtedness previously secured by repealed taxes.