- March 28, 2024
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Economic development officials statewide tout Florida's low taxes in many areas, usually for good reason, but they missed the call on this latest levy: Florida, at 16.55%, has the fourth-highest average state-local cell phone tax in the country, according to a Tax Foundation report.
The report adds that Floridians, on average, actually pay 22.38% of their wireless bill in taxes and fees. The U.S. average combined federal, state and local rate, the foundation says, is 17.05%.
The high taxes, say the authors of the report, Scott Mackey and Joseph Henchman, matter for more than state rankings. For one, excessive taxes, especially regressive ones like some phone fees, hit low-income consumers the hardest.
“Wireless consumers continue to face excessive tax burdens when compared to the tax burden on other goods and services purchased in the competitive marketplace,” the report states. “The average rates of taxes and fees on wireless telephone services are more than two times higher than the average sales tax rates that apply to most other taxable goods and services.”
Here are some other nuggets from the report:
Consumers in seven states — Washington, Nebraska, New York, Florida, Illinois, Rhode Island and Missouri — pay total taxes and fees in excess of 20% of their bills.
Four cities — Chicago, Baltimore, Omaha and New York City — have effective tax rates in excess of 25% of a customer's bills.
The five states with the highest state-local rates are: Washington at 18.6%; Nebraska at 18.48%; New York at 17.74%; Florida at 16.55%; and Illinois at 15.81%.
The five states with the lowest state-local rates are: Oregon at 1.76%; Nevada at 1.86%; Idaho at 2.62%; Montana at 6%; and West Virginia at 6.15%.