Florida Senate - 2025 SB 1352 By Senator Trumbull 2-01287A-25 20251352__ 1 A bill to be entitled 2 An act relating to communication services; amending s. 3 202.19, F.S.; revising the date after which a 4 specified tax may be increased; amending s. 212.08, 5 F.S.; creating a tax exemption for certain 6 communications and Internet equipment; defining terms; 7 providing applicability; providing construction; 8 specifying how the exemption may be obtained; creating 9 the Communications Services Tax Working Group; 10 specifying where the group is housed administratively; 11 providing membership; prohibiting members from 12 receiving reimbursement; providing an exception; 13 providing the groups purpose; requiring the group to 14 prepare and submit a report to the Governor and 15 Legislature by a specified date; authorizing the group 16 to hold meetings; providing for future repeal; 17 providing effective dates. 18 19 Be It Enacted by the Legislature of the State of Florida: 20 21 Section 1.Effective July 1, 2025, paragraph (d) of 22 subsection (2) and subsection (5) of section 202.19, Florida 23 Statutes, are amended to read: 24 202.19Authorization to impose local communications 25 services tax. 26 (2) 27 (d)The local communications services tax rate in effect on 28 January 1, 2023, may not be increased before January 1, 2031 29 2026. 30 (5)In addition to the communications services taxes 31 authorized by subsection (1), a discretionary sales surtax that 32 a county or school board has levied under s. 212.055 is imposed 33 as a local communications services tax under this section, and 34 the rate shall be determined in accordance with s. 202.20(3). 35 However, any increase to the discretionary sales surtax levied 36 under s. 212.055 on or after January 1, 2023, may not be added 37 to the local communications services tax under this section 38 before January 1, 2031 2026. 39 (a)Except as otherwise provided in this subsection, each 40 such tax rate shall be applied, in addition to the other tax 41 rates applied under this chapter, to communications services 42 subject to tax under s. 202.12 which: 43 1.Originate or terminate in this state; and 44 2.Are charged to a service address in the county. 45 (b)With respect to private communications services, the 46 tax shall be on the sales price of such services provided within 47 the county, which shall be determined in accordance with the 48 following provisions: 49 1.Any charge with respect to a channel termination point 50 located within such county; 51 2.Any charge for the use of a channel between two channel 52 termination points located in such county; and 53 3.Where channel termination points are located both within 54 and outside of such county: 55 a.If any segment between two such channel termination 56 points is separately billed, 50 percent of such charge; and 57 b.If any segment of the circuit is not separately billed, 58 an amount equal to the total charge for such circuit multiplied 59 by a fraction, the numerator of which is the number of channel 60 termination points within such county and the denominator of 61 which is the total number of channel termination points of the 62 circuit. 63 Section 2.Effective July 1, 2025, paragraph (vvv) is added 64 to subsection (7) of section 212.08, Florida Statutes, to read: 65 212.08Sales, rental, use, consumption, distribution, and 66 storage tax; specified exemptions.The sale at retail, the 67 rental, the use, the consumption, the distribution, and the 68 storage to be used or consumed in this state of the following 69 are hereby specifically exempt from the tax imposed by this 70 chapter. 71 (7)MISCELLANEOUS EXEMPTIONS.Exemptions provided to any 72 entity by this chapter do not inure to any transaction that is 73 otherwise taxable under this chapter when payment is made by a 74 representative or employee of the entity by any means, 75 including, but not limited to, cash, check, or credit card, even 76 when that representative or employee is subsequently reimbursed 77 by the entity. In addition, exemptions provided to any entity by 78 this subsection do not inure to any transaction that is 79 otherwise taxable under this chapter unless the entity has 80 obtained a sales tax exemption certificate from the department 81 or the entity obtains or provides other documentation as 82 required by the department. Eligible purchases or leases made 83 with such a certificate must be in strict compliance with this 84 subsection and departmental rules, and any person who makes an 85 exempt purchase with a certificate that is not in strict 86 compliance with this subsection and the rules is liable for and 87 shall pay the tax. The department may adopt rules to administer 88 this subsection. 89 (vvv)Certain communications and Internet equipment. 90 1.As used in this paragraph, the term: 91 a.Communications and Internet equipment means equipment, 92 machinery, software, or other tangible personal property used, 93 in whole or in part, by a provider of communications services, 94 Internet access services, or a combination thereof, to transmit, 95 convey, amplify, or route information such as images, text, 96 voice, video programming, other video content, or data. The term 97 includes, but is not limited to, cable modem termination system 98 components and WiFi equipment, headend and hub equipment, 99 monitoring equipment, fiber optic cable, coaxial cable, conduit, 100 distribution plants, customer connection or premises equipment, 101 telecommunications radio, routing and switching equipment, 102 software, equipment enclosures above and below ground, towers, 103 poles, mounts, electricity, transmitters, power equipment, 104 diagnostic equipment, storage devices, servers, multiplexers, 105 amplifiers, antennas, and related property and equipment, 106 including items used to monitor, test, maintain, enable, or 107 facilitate qualifying equipment, and includes charges to apply, 108 install, maintain, operate, or repair such tangible personal 109 property. The term does not include office furniture and 110 fixtures; general office equipment and machinery that is not 111 used to provide communications services or Internet access 112 services; or motor vehicles. 113 b.Communications services has the same meaning as in s. 114 202.11(1). 115 c.Disaster period means a time period that begins 10 116 days before the declaration of a state of emergency issued by 117 the Governor pursuant to s. 252.36 and ending 60 days after 118 termination of such emergency declaration. 119 d.Eligible area means any county that is subject to a 120 state of emergency declared by the Governor pursuant to s. 121 252.36 during the disaster period. 122 e.Eligible service provider includes a dealer as defined 123 in s. 202.11(2), a provider of Internet access services, and any 124 member of an affiliated group as defined in s. 202.37(1)(c)2. 125 f.Internet access service has the same meaning as in s. 126 202.11(6). 127 g.Unserved has the same meaning as in s. 288.9963(2)(e). 128 2.Communications and Internet equipment purchased, used, 129 or leased, including the installation or repair of such 130 equipment, in an unserved area or during a disaster period by an 131 eligible service provider within an eligible area is exempt from 132 the tax imposed by this chapter. 133 a.The exemption provided for a disaster period under this 134 paragraph is intended to apply to communications and Internet 135 equipment that was damaged by the natural disaster for which the 136 Governor declared a state of emergency pursuant to s. 252.36. 137 b.To the extent communications or Internet equipment is 138 used to provide communications or Internet access services 139 within an eligible area but such equipment is partly within and 140 partly outside the eligible area, or wholly outside the eligible 141 area, the exemption must be based on a reasonable allocation of 142 such equipments sales price or cost price, as applicable, which 143 reasonably reflects the location where the equipment is used. 144 3.Communications and Internet equipment acquired with 145 grants or matching contributions made pursuant to the federal 146 Broadband Equity, Access, and Deployment Program, as established 147 pursuant to 47 U.S.C. s. 1702, or a similar program established 148 under the laws of this state, is exempt from the tax imposed by 149 this chapter if the funds are expended for the purpose of making 150 investments in infrastructure to provide broadband Internet 151 access services. 152 4.The exemption provided by this paragraph may be obtained 153 only by a refund of previously paid taxes on a form prescribed 154 by the department. 155 Section 3.(1)The Communications Services Tax Working 156 Group is created and housed for administrative purposes within 157 the Department of Revenue. 158 (2)The working group shall be composed of 9 members as 159 follows: 160 (a)The executive director of the Department of Revenue, or 161 his or her designee, who shall serve as chair and as a nonvoting 162 member and who shall appoint the remaining members. 163 (b)Four members who may include, but are not limited to, 164 video service providers, direct-to-home satellite service 165 providers, local telephone service providers, and wireless 166 service providers who provide prepaid services. 167 (c)Two members who are representatives of county 168 governments. 169 (d)Two representatives who are representatives of 170 municipal governments. 171 (3)Members of the working group are not entitled to 172 receive reimbursement for per diem and travel expenses other 173 than reimbursement provided by their respective company, group, 174 office, or agency. 175 (4)The working group shall do all of the following: 176 (a)Review national and state tax policies relating to the 177 communications industry. 178 (b)Review the historical amount of tax revenue that has 179 been generated by the communications services taxes imposed or 180 administered pursuant to chapter 202, Florida Statutes. 181 (c)Review how local governments are spending the 182 communications services taxes collected, specifically whether 183 the taxes are being used to fund general obligations and to 184 secure bond indebtedness. 185 (d)Review the fairness of the states communications tax 186 laws and their administrative burdens, including whether the 187 applicability of the tax laws are reasonably clear to 188 communications services providers, retailers, customers, local 189 government entities, and state administrators. 190 (e)Identify options for streamlining the administrative 191 systems related to communication services taxes. 192 (f)Review the local communications services tax rates in 193 effect within municipalities, charter counties, and noncharter 194 counties. 195 (g)Identify options that remove the competitive advantage 196 within the industry as it relates to the states tax structure 197 without unduly reducing revenue to local governments, including, 198 but not limited to, a review of industry trends, developing 199 business models, and new entrants that provide services that 200 compete with traditional communications services providers. 201 (5)The working group shall prepare a report that addresses 202 the issues described in subsection (4) and submit such report to 203 the Governor, the President of the Senate, and the Speaker of 204 the House of Representatives by December 1, 2025. The working 205 group shall hold meetings as frequently as deemed necessary by 206 the chair to prepare the report. 207 (6)In accordance with s. 20.052(8), Florida Statutes, this 208 section is repealed October 2, 2028. 209 Section 4.Except as otherwise provided in this act, this 210 act shall take effect upon becoming a law.