Florida's Documentary Stamp Tax
Which Documents Require Documentary Stamp Tax?
Documentary stamp tax is levied on documents as provided under Chapter 201, Florida Statutes. Documents subject to the tax include, but are not limited to:
- Deeds
- Stocks and bonds
- Notes and written obligations to pay money
- Mortgages, liens, and other evidences of indebtedness
Deeds
The tax rate for documents that transfer an interest in real property is $.70 per $100 (or portion thereof) of the total consideration paid, or to be paid, for the transfer. An exception is Miami-Dade County, where the rate is $.60 per $100 (or portion thereof) when the property is a single-family residence. If the Miami-Dade property is anything other than a single-family residence, the tax rate is $.60 plus $.45 surtax per $100 (or portion thereof).
Prior to recording a deed or other instrument transferring interest in Florida real property, a Return for Transfers of Interest in Florida Real Property (Form DR-219) must be filed with the clerk of the circuit court in the county where the property is located.
Examples of documents that may include a transfer of interest in real property include:
- Warranty deeds
- Quit claim deeds
- Contracts for timber, gas, oil, or mineral rights
- Easements
- Contracts or agreements for deed
- Assignments of contract or agreement for deed
- Gifts
- Assignments of leasehold interest
- Assignments of beneficial interest in a trust
- Deeds in lieu of foreclosure
Consideration generally consists of:
- Money paid or to be paid
- Discharge of an obligation
- Mortgage or other lien encumbering the property
- Stock or an increase in stock value
- Exchange of property
- Interest in an artificial entity
- Any other monetary consideration or consideration which has value
When the consideration paid or exchanged for real property is property other than money, the consideration is equal to the fair market value of the real property.
A deed transferring an interest in real property between a husband and wife may be subject to documentary stamp tax. If the property is mortgaged, tax is due in many cases, but is usually based on half of the amount of the mortgages on the property. Tax is generally not due if the property is unmortgaged or if the marital home is transferred due to a divorce.
Bonds and Stocks
Bonds - Documentary stamp tax is due upon the original issuance of bonds in this state. The tax rate is $.35 per $100 (or portion thereof) based upon the face value of the bond.
Stocks - Effective May 1, 2002, the tax on the original issue of stock was repealed.
Notes and Other Written Obligations to Pay Money
The tax rate on a written obligation to pay money is $.35 for each $100 (or portion thereof) of the obligation evidenced by the document. Tax is due on a document that contains a promise to pay a specific amount of money and is signed, executed, or delivered in Florida. Effective May 1, 2002, the maximum amount of documentary stamp tax due on unsecured notes or other written obligations is $2,450.
Examples include:
- Demand notes
- Term notes
- Retail installment sale contracts
- Leases with an unconditional promise to pay
- Certain renewal notes
- Title loans
Mortgages, Liens, and Other Evidences of Indebtedness
Documentary stamp tax is due on a mortgage, lien, or other evidence of indebtedness filed or recorded in Florida. The tax rate is $.35 per $100 (or portion thereof) and is based on the amount of the indebtedness or obligation secured, even if the indebtedness is contingent. When a mortgage, lien, or other evidence of indebtedness is given to secure a previously unsecured indebtedness or obligation upon which the maximum tax of $2,450 was paid, tax is due on the full amount of the indebtedness or obligation secured, minus the $2,450 already paid.
Exemptions
Documentary stamp tax is generally payable by any of the parties to a taxable transaction. If one party is exempt, the tax is required of the nonexempt party. United States government agencies; Florida government agencies; and Florida's counties, municipalities, and political subdivisions are exempt from documentary stamp tax.
Certain documents are specifically exempted from documentary stamp tax by Florida Statutes or federal law. If you are unsure whether a document is exempt, contact Taxpayer Services (See "Whom to Call").
Collecting and Paying the Tax
Nonregistered persons who have less than five (5) taxable transactions per month should use Form DR-228, Documentary Stamp Tax Return for Nonregistered Taxpayers' Unrecorded Documents, to remit tax.
Any person with five (5) or more taxable transactions per month must register with the Department. You can register to collect and/or report tax via the Department's Internet site; click on e-Services. If you do not have Internet access, you can complete a paper Application to Collect and/or Report Tax in Florida (Form DR-1).
Registered taxpayers should use their personalized Documentary Stamp Tax Return for Registered Taxpayers' Unrecorded Documents (Form DR-225) to remit tax.
See below for information on obtaining forms.
Penalty and Interest
Any document that, upon audit or when recorded, does not contain evidence of the proper amount of the tax paid is assessed a penalty of 10 percent of the amount of tax owed per month, not to exceed 50 percent of the tax not paid. A minimum penalty is assessed on late returns, even if no tax is due.
A floating rate of interest applies to underpayments and late payments of tax. The rate is updated January 1 and July 1 of each year by using the formula established in section 213.235, Florida Statutes. For current and prior period interest rates, contact Taxpayer Services.
Reference Material
Tax Laws - Call Taxpayer Services to request a copy of Rule 12B-4, Florida Administrative Code and Chapter 201, Florida Statutes. Tax laws are also available on the Department's Internet site; look for the Florida Tax Law Library.
For Information and Forms
Information and forms are available on our Internet site at www.myflorida.com/dor
http://www.myflorida.com/dor/
To receive forms by
mail:
- Order multiple copies of forms from our Internet
site at
http://www.myflorida.com/dor/forms/
or
- Fax your form request to the DOR Distribution Center
at
850-922-2208 or
- Call the DOR Distribution Center at
850-488-8422 or
- Mail your form request
to:
DISTRIBUTION CENTER
FLORIDA DEPARTMENT OF
REVENUE
168A BLOUNTSTOWN HWY
TALLAHASSEE FL 32304-3702
To receive a fax copy
of a form, call 850-922-3676 from your fax machine
telephone.
|
