Prepaid wireless tax put on hold

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Tax on prepaid wireless services, even if it includes “communications” services like texting or email, would continue to be subject to the regular 6 percent sales tax instead of the much higher combination of communications services taxes, under an amendment tacked Friday onto a wide-ranging transportation bill (HB 7127) that also includes a process for the state to evaluate sports franchises’ requests for taxpayer money.

Prepaid cell phones used to be taxed with only the 6 percent sales tax, but the Department of Revenue recently determined that they should be subject to the communications services tax, which could be up to more than 16 percent. The amendment would enact a moratorium on collection of the communications services tax on prepaid cell phones. Industry officials say prepaid wireless may now represent over 25 percent of wireless purchases. The bill containing the amendment passed the Senate unanimously Friday afternoon and was awaiting a House vote.

Via The News Service of Florida.

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