Taxpayers in Florida might see an increase in their state sales tax as part of an overhaul of the state’s communications services tax, Marshall Stranburg, Executive Director of the Florida Department of Revenue, told Walt Nagel, Don Griswold, and Jeremy Abrams, all with Crowell and Moring’s state tax team. Stranburg’s comments were part of a larger interview in which he spoke candidly about current tax issues facing the state, including taxpayer confidentiality and affiliate nexus. [ full text of interview available here ].
The Department of Revenue, according to Stranburg, is part of a working group that is looking at ways to simplify the administration of the communications services tax and also remove any essentially differential treatment among like services but without harming local governments who receive a decent amount of revenue from this tax.
The option unanimously put forward by the group involves taking the communications services tax, eliminating it, moving services back into the sales tax, and then taxing them under the sales tax statutes, Stranburg said.
But in order to make it revenue neutral there would have to be a bump up in the rate on the general sales tax. And our best guess, because the working group asked the Department to try to come up with what they thought that number would be, would raise the sales tax rate by .34 percent. So the state rate would go from 6 percent to 6.34 percent, he said.
According to Stranburg, other legislative initiatives on the horizon also include the elimination of the sales tax on machinery and equipment and also a bump-up in the exemption amount for corporate income tax filers. The Governor's put forward another bump-up in the exemption amount for corporate income tax filers, Stranburg said. “We started out a few years back at a $5,000 exemption. He bumped it to $25,000, it's gone up to $50,000, and now he's proposing to take it from $50,000 up to $75,000.”
In other developments…
States Push to Get the Most Out of Marijuana Taxes , by the New York Times.
Sutherland issues its SALT Shaker : April 2013 Digest
Morrison & Foerster releases its May 2013 issue of New York Tax Insights .
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)