Was the property encumbered by a mortgage or other lien at the time of the transfer? Gen. Fla. 060-125 (July 29, 1960)) Note: There is no specific exemption for documents that transfer Florida real property for estate planning purposes. additional documents subject to tax. Registered taxpayers report and pay documentary stamp tax to the Department using a Documentary Stamp Tax Return for Registered If a deed is not recorded by the 20th day following A wife deeds her homestead Florida real property to herself and her husband. How Can Documentary Stamp Tax Be Avoided? Documentary stamp tax is due on a mortgage, lien, or other evidence of indebtedness filed or recorded in Florida. If there is no financing involved, then the documentary stamp tax will be calculated based upon the sales price of the property itself at a rate of $0.70 per $100 of value. 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. This tax applies to warranty deeds, quit claim deeds and similar documents. However, if the property is not sold upon the death of the grantor, the deed becomes subject to the full stamp tax fee. by Mark (Florida, USA) Ask Kate: Refinancing Advice - Documentary Stamp Tax Kate, I refinanced about 3 years ago in Florida. Florida Documentary Stamp Tax on documents began in November 1931. Consider that, pursuant to Florida Statutes §§193.1554 and 193.1555, certain non-homestead residential real property and non-residential real property may not exceed annual reassessments in excess of ten percent (10%). additional documents exempt from tax. However, the tax due on a note or other written obligation to pay money the Drop and Swap Documentary Stamp Tax Avoidance Technique August 12, 2009 Effective July 1, 2009, Florida Statutes Section 201.02 was modified to eliminate the so-called “drop and swap” technique frequently used to avoid Florida documentary stamp taxes on the transfer of Florida real property. For more information, visit the (b) Any person who is not required to register and has not elected to register is required to file a Documentary Stamp Tax Return For Nonregistered Taxpayers’ Unrecorded Documents (form DR-228, incorporated by reference in Rule 12B-4.003, F.A.C.) In our state, documents that transfer interest in Florida real property, are assessed what is known as a "documentary stamp tax." Temporary Suspension of Documentary Stamp Tax on Certain SBA Loans. Conclusion: On the sell-side of residential and commercial transactions alike, where the property is held by a business entity, the seller should carefully consider a sale of the equity interests in the entity rather than an outright sale of the land, as they maybe saved from paying substantial documentary stamp taxes. Department of Revenue Division 12B. In the state of Florida, transfer taxes are typically referred to as Documentary Stamps on the deed. A registered location that has moved from one Florida county to another. The clerk of court states I have to pay .70 on $100 taxes if I add my spouse to my home deed. Tax is due on the full amount of the The consideration for the transfer is $40,675. loan amount/100 x 0.35). Taxpayers' Unrecorded Documents, Documentary Stamp Tax Return for Nonregistered Taxpayers' "$10 or other good and valuable consideration," then $.70 tax is due. At the Unrecorded Documents (Form DR-228 Regardless of where the deed or other document is The only consideration for the transfer is the amount of a mortgage or other lien encumbering the homestead property. the mortgage, lien, or other encumbrance on the property, whether assumed or not. Florida imposes a transfer tax on the transfer of real property in Florida. The newlyweds had found one another later in life, after both were living comfortably in retirement. The property is encumbered by a mortgage and following the divorce and the property was their marital home or an interest therein at the time of divorce. Conveyance of property through an enhanced life estate deed is not considered to be a completed gift until the death of the grantor. Deed Documentary Stamps. The consideration for the transfer If Florida real estate is the only real estate involved in the transaction, then documentary stamp tax of 35 cents per $100.00, or portion thereof, of the indebtedness will be due (e.g. Multiply the amount subject to tax by 0.007 if the document transfers real property in Florida or 0.0035 if the document is executed or delivered in Florida. In days gone by, the tax was evidenced by affixing stamps to the deed. If the deed reflects nominal consideration, such as "love and affection and $1" or For a list of the electronic payment deadlines, visit the Department's Forms and Procedures. Is money to be paid for the property interest transferred? The Florida documentary stamp (“promise to pay”) tax is due in the amount of $.35 on every $100 (or fraction thereof) of indebtedness secured by a mortgage on Florida real property. (Form DR-1 You can register using the online liable for the tax regardless of which party agrees to pay the tax. 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