Communications Services Tax Protection Talking Points

The communications services tax (CST) is a vital source of general revenue that is used to assist in funding essential municipal services such as zoning, permitting, code enforcement, and police and fire services.

Many cities have pledged CST revenues for debt to fund projects that benefit businesses and citizens. 

When the Legislature consolidated seven different state and local taxes into the CST, the intent was to provide a fair, efficient, and uniform method for taxing communications services sold in Florida - including a competitively neutral tax policy.

The Florida League of Cities recognizes that because technology has evolved over the past two decades, it is important to take a comprehensive look at how we tax communication services and modernize the revenue stream.

HB 1245 and SB 1210 would remove video streaming from the CST; creating a competitive disadvantage for traditional providers. 

This will reduce the tax base upon which the CST is levied and collected, thus it will have a negative fiscal impact on the state and local governments.

The Florida League of Cities is opposed to any additional erosion of the CST tax base.