Wireless service tax cut to slice 1.73% off cellphone bills
Florida’s wireless customers are set to see a tax break on future bills as the state’s Legislature this week passed a $400 million tax plan that includes a stipulation that will see wireless phone bills drop by 1.73% per month.
The wireless service tax cut was part of a broader proposition by Gov. Rick Scott that also covered television services. Scott’s initial proposal called for $673 million in total tax cuts, with the current 6.65% wireless service tax cut to around $40 per year on a $100 per month average cellphone bill.
A report last year from Tax Foundation showed Florida had the fourth-highest tax rate on wireless services in 2013, with a combined rate of 22.38% when including federal, state and local taxes. The nation’s average tax rate was reported at 17.05%, which was down slightly from the 17.18% recorded in 2012. The figures all included a 5.82% federal universal services fund rate, with the difference made up of state and local taxes.
The report also found Florida was No. 3 in terms of the disparity between taxes charged for wireless services and a state’s general tax rate, with a difference of 9.3%.
Wireless trade association CTIA notes that on average, consumers pay more than double on taxes and fees for their wireless service than on other general goods and services.
“This excessive and discriminatory taxation hurts those who can least afford communications services, and is directly opposed to policymakers’ efforts to ensure affordable broadband access for all Americans,” CTIA stated. “That’s why we advocate for legislation that creates a reasonable and clearly defined wireless tax and fee structure.”
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