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Senate Bill 378

Legislation to Cut Commercial Lease Sales Tax Passes First Senate Committee

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SB 378 eliminates narrow corporate subsidy, instead providing
dollar-for-dollar recurring tax relief for Florida businesses

The Senate Committee on Finance and Tax, chaired by Senator Kelli Stargel (R-Lakeland) today passed Senate Bill 378 by Senate President Pro Tempore Anitere Flores (R-Miami, Monroe). The legislation repeals the insurance premium tax credit and replaces it with a dollar-for-dollar reduction in the sales tax on commercial leases.
“When originally put in place thirty years ago, this narrow corporate subsidy for insurance companies was well intentioned, but times have changed and we need to reprioritize,” said Senate President Joe Negron (R-Stuart). “By replacing this outdated subsidy that benefits only one industry with revenue-neutral, meaningful, and permanent tax relief, we are continuing our commitment to reducing the tax burden facing Florida businesses.”
“Cutting this business tax will help the small, local businesses in our communities who lease property,” continued President Negron. “Florida is the only state in the country to tax businesses in this way. Reducing this burdensome tax promotes the private sector job creation we need to maintain a strong economy. I am hopeful that it will become a component of our comprehensive tax relief package for this session.”
Since 1987, Florida has provided a tax credit that insurance companies can take against their premium tax liability of up to 15 percent of salaries paid to employees located or based within Florida. The same benefit is not provided for other industries.
Senate Bill 378 is intended to be revenue neutral and provide a permanent reduction to the sales tax charged on commercial leases. The legislation revises distributions to ensure that local governments are not impacted by the rate changes in the bill.
 

Senate President Pro Tempore Files Legislation to Cut Cell Phone and TV Tax

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Senate Bill 378 eliminates narrow corporate subsidy, instead providing
dollar-for-dollar tax relief for Florida’s families and businesses

Senate President Pro Tempore Anitere Flores (R-Miami, Monroe) today filed Senate Bill 378, which repeals the insurance premium tax credit and replaces it with a two percent reduction in the communications services tax (CST).
“Florida’s CST is one of the highest in the nation. In 2015, we made great progress by permanently reducing Florida’s CST by 1.73 percent. This year, we can reduce this burdensome tax even further and provide additional monthly savings to every Floridian with a cell phone or cable or satellite TV,” said President Pro Tempore Flores.
Since 1987, Florida has provided a tax credit that insurance companies can take against their premium tax liability of up to 15 percent of salaries paid to employees located or based within Florida. The same benefit is not provided for other industries.
“When originally put in place thirty years ago, this taxpayer-funded subsidy for insurance companies was well intentioned, but times have changed and we need to reprioritize,” said Senate President Joe Negron (R-Stuart). “We can take the revenue we save from eliminating a tax credit that only benefits one industry and use it to provide a meaningful, monthly, and permanent tax cut for Florida’s families and businesses.”
“This bill will rid our state of an antiquated government subsidy for a specific industry, and instead keep more money in the pockets of the hard-working Floridians who earn it,” continued President Pro Tempore Flores. “This tax relief package continues our commitment to reducing the tax burden facing Florida families and businesses. Reducing taxes leads to private sector job creation and a flourishing economy that benefits all Floridians.”
“As Florida’s economy grows, we must continue to search for ways to reduce the tax burden on families and businesses across our state,” continued President Negron. “In recent years, we have lowered vehicle registration fees, providing a recurring tax cut for every Floridian who registers a car. This year we want to continue our efforts by providing additional tax relief for every Floridian with a cell phone or cable or satellite television. As just one component of a comprehensive tax relief package, this proposal alone could provide $300 million in recurring tax relief for families and businesses in addition to the significant savings generated by proposals advocated by Governor Scott and options filed in the Senate and the House.”