Those Italian balance modifiers greatly increases AE at the higher levels. I think it's 50+ percent.
^ He is paying DIP which suggests that he's not getting a valid CB demand and likely not the 50% reduction. For excommunication I think you need claims to make it part of CB demand.
Base AE appears to be modified by prestige or some other factor a small amount.
For excommunication you need to border the province OR to have a claim.
What happened there is that florence probally elected someone else that is not excommunicated.