What is the Florida Communications Services Tax (CST)?

The Florida CST is a state and local tax imposed on communications services like phone, video, and data transmission. It includes a 4.92% state CST, 2.52% in gross receipts taxes, and a varying local CST rate.

What services are subject to Florida CST?

Services include traditional telephone, VoIP, mobile, streaming video, cable, satellite, and other transmissions of data or signals. CST applies to both business and residential customers, though some residential exemptions exist.

How much is the Florida CST rate?

The total state-level CST is 7.44%, made up of 4.92% state tax and 2.52% gross receipts tax. Local CST rates vary by jurisdiction and are added on top.

Do local CST rates change?

Local CST rates are currently frozen through January 1, 2026, under Florida law. Legislation is pending to extend the freeze further, ensuring continued rate stability.

Is streaming video subject to Florida CST?

Yes. Florida considers streaming video services, whether live, on-demand, or personalized, as taxable “video services” subject to CST.

Are influencer videos and paid video chats taxable?

Yes. According to TAA 23A19-001, personalized video greetings and real-time video chats with influencers are considered taxable video services under Florida CST.

What about cloud-based services or software platforms?

Yes. The repeal applies broadly to commercial leases throughout the state, including office, retail, industrial, warehouse, and certain self-storage units.

Can CST be absorbed by the seller?

No. Dealers are prohibited from absorbing CST. The tax must be added separately to the customer’s bill and clearly itemized.

How are communications services sourced for tax purposes?

CST is sourced to the customer’s service address or primary use location. ZIP code sourcing is not sufficient. Dealers must use accurate address databases and follow jurisdictional rules.

Are bundled services taxable under CST?

Yes. If a taxable communications service is bundled with exempt products and not separately itemized, the entire charge is subject to CST.

Florida Communications Services Tax: Expanded Scope, Recent Guidance, and Compliance Risks

By Moffa Tax Law | Florida State and Local Tax

What Is the Florida Communications Services Tax?

The Florida Communications Services Tax (CST) is a state and local tax imposed on the retail sale of voice, video, data, and similar communications services. Introduced in 2001 to unify prior taxes on telecom and cable services, CST now applies to a wide variety of modern services, including streaming video and digital content delivery.

How the CST Is Structured

State CST Rate: 4.92%
Gross Receipts Taxes: 0.15% (add-on) + 2.37% = 2.52%
Total State-Level CST: 7.44%
Local CST Rate: Varies by jurisdiction; separately imposed and itemized

Dealers may combine the 4.92% state CST and the 0.15% gross receipts add-on and list them as “state tax” (5.07%) on customer invoices. All components—state, gross receipts, and local CST—must be itemized separately, and providers are prohibited from absorbing any part of the tax.

Direct-to-Home Satellite Service Rates

Direct-to-home satellite services are taxed differently:

DTHS State CST Rate: 9.07%
Gross Receipts Tax: 2.37%
Total Rate: 11.44%
Local CST: Not applicable

Examples of CST Application

Local and VoIP phone services: 7.44% CST + local rate; residential exemption may apply
Mobile and video streaming: 7.44% CST + local rate; no exemption
Hotel phones and fax services: 7.44% CST + local rate; no exemption
Satellite TV: 11.44% CST total; no local rate; no exemption

Recent CST Guidance from the Florida DOR

TAA 23A-009 (April 2023): Streaming Courses Bundled with Devices

This TAA involved an online bar exam course that included access to streaming video and a bundled iPad. The Department found that since the iPad was not separately billed and was used to access taxable video content, the entire charge was subject to CST. Bundled pricing that includes taxable video services must be treated as a taxable communications service unless components are separately itemized.

TAA 23A19-001(October 2023): Influencer Videos and Live Chats

Florida DOR ruled that both prerecorded personalized celebrity messages and live, one-on-one video chats are taxable as “video services.” The interactive or customized nature of the content does not exempt it from CST. The ruling reinforced that services transmitting video—even for entertainment—fall within CST’s scope.

TAA 22A19-002R (2022 Revision): Communications vs. Information Services

This revised advisory clarified that communications services involve transmission of audio, video, or signals, while information services involve data storage or processing. Streaming platforms that transmit digital video are taxable under CST, regardless of how they are delivered. Cloud services focused solely on data manipulation may remain exempt.

TIP 22ADM-07 (2022): Registration and Sourcing Rules

This Technical Information Publication highlighted compliance procedures including registration requirements, sourcing of customer location, exemption documentation, and mandatory e-filing for businesses with over $5,000 in CST liability. It also noted that dealers using the DOR’s certified address database may retain a 0.75% collection allowance.

Update: HB 7063 (2023) froze local CST rates through January 1, 2026. Legislation currently pending in the Florida Legislature proposes extending this freeze further to ensure rate stability and prevent midstream changes by municipalities.

TAA 22A-022 (November 2022): Bundling, Sourcing, and Exemption Enforcement

This TAA emphasized that when taxable communications services are bundled with exempt products or services and not separately itemized, the full charge is subject to CST. It addressed sourcing for nomadic services like mobile and VoIP, reaffirming that billing or primary-use address determines the correct jurisdiction. The ruling also clarified that exemption documentation must be current and on file, and that ZIP code sourcing is not sufficient for compliance. Dealers are responsible for applying the correct jurisdictional tax rate per Rule 12A-19.071, F.A.C.

Final Thoughts: CST Compliance in a Digital Economy

Florida’s CST regime is increasingly being applied to modern, digital, and web-based services. As businesses shift toward remote, app-based, and video-rich offerings, the risk of misclassifying taxable communications services continues to grow. Providers must review their billing structures, service bundles, exemption documentation, and sourcing practices to avoid audit exposure and penalties.

Moffa Tax Law | Florida State and Local Tax Attorneys