Senate tax cut proposal, as is, may be on the ropes

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A tax cut that’s a priority of Senate President Joe Negron is running into resistance from his fellow senators.

Sen. Anitere Flores, a Miami-Dade Republican and Negron’s right hand in the chamber, is running the bill (SB 378) to pay for a cut in the state’s tax on mobile phone, satellite and cable TV service by repealing a tax break to insurers.

On Friday evening, Flores said “there have been conversations” among some senators—she didn’t say whom—who want to  restructure the bill, still taking the tax credits from the insurance industry but instead applying them to another cost driver.

School funding was one example bandied about this week, she added.

“My point is, many senators—if not the majority of senators—are still in favor of getting rid of this break that benefits only one industry to provide (tax) relief for more Floridians,” she said in a phone interview.

The bill was to be discussed Wednesday by the Senate Appropriations Subcommittee on Finance and Tax, but was pulled off the agenda by chair Kelli Stargel, who later said she didn’t want to take up the bill because only three of the panel’s five members were there.

“That’s a decision that was made by the chair,” Negron told reporters later Wednesday. “I wasn’t involved in that decision but I think it’s perfectly reasonable and I support (it).” No one said a lack of votes was the problem.

Flores, however, still is advocating the original tax swap, taking away a 15 percent tax credit on the salaries that insurers give their full-time workers here in the state for a reduction in the state’s communications services tax (CST).

Other colleagues of hers aren’t sure that’s the best use of the money.

When asked if a compromise could be struck, Flores said she wanted the legislation “to be a collaborative bill, so right now this is a work in progress.”

A coalition of Florida business groups—including Associated Industries of Florida (AIF), the Florida Chamber of Commerce, and the Florida Insurance Council (FIC)—already has publicly opposed taking away the insurance industry’s tax credit.

In 2013, Negron tried to get rid of the now 30-year-old tax break to insurance companies, now worth around $435 million, to decrease automobile fees. The insurance industry helped kill that effort in the House. Fees were later reduced without scuttling the tax break.

Earlier this year, the Stuart Republican said he was again looking to eliminate the insurance deal.

“Those funds would much be much better spent providing tax relief to Floridians, to businesses, rather than subsidizing the labor cost of one particular industry,” he said Wednesday.

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Before joining Florida Politics, journalist and attorney James Rosica was state government reporter for The Tampa Tribune. He attended journalism school in Washington, D.C., working at dailies and weekly papers in Philadelphia after graduation. Rosica joined the Tallahassee Democrat in 1997, later moving to the courts beat, where he reported on the 2000 presidential recount. In 2005, Rosica left journalism to attend law school in Philadelphia, afterwards working part time for a public-interest law firm. Returning to writing, he covered three legislative sessions in Tallahassee for The Associated Press, before joining the Tribune’s re-opened Tallahassee bureau in 2013. He can be reached at jim@floridapolitics.com.