Who Pays Documentary Stamp Tax in Florida

By April 19, 2022No Comments

John buys a vacant property in Miami-Dade County for $500,000. In addition to the payroll tax of $0.60 per 100 documentary stamps, Miami-Dade County also charges a voluntary additional tax of $0.45 per 100. Since there is no other consideration for the transfer, the tax is calculated at $500,000. In all counties except Miami-Dade County, the Florida documentary stamp tax rate is $0.70 per $100 paid for the property. The documentary stamp tax of $150,000 on a $150,000 house would be equivalent to $1,050.00. In Miami-Dade County, the tax rate is $0.60 per $100 for single-family homes, with an additional $0.45 to $100 each for other types of real estate. Buyers and sellers of real estate in Florida are familiar with the document stamp tax because it invariably appears as a closing cost on their billing statements. Whether the seller alone or both the seller and the buyer pay the receipt stamp taxes depends on the type of transaction. If financing is not required, the stamp tax on documents is calculated based on the sale price of the property itself at the rate of $0.70 per $100 value. The only Florida county with a different schedule is Miami Dade County, where the price is $0.60 per $100 if the property is a single-family residence.

Other types of real estate in Miami Dade County are charged at slightly different rates than documentary stamp tax. The Treasury Department always strives to crush anyone who wants to be frivolous with their tax revenues, so it`s possible (regardless of its removal) that it will challenge the declared value of personal property and try to charge the $700 in taxes saved plus penalties and interest. To protect the seller, the seller must obtain a written assessment of the personal property included in the sale, indicating that the personal property is worth at least $100,000. This does not guarantee that the Ministry of Finance will leave the seller alone, but it does give the seller a credible defense if they have to respond to an audit. Whether the stamp duty savings are worth the cost of valuation is another issue that needs to be assessed. The Florida Documentary Stamp Tax is an excise duty collected, exported, or delivered in Florida on certain documents. Therefore, whether granted by a Florida lender or a non-Florida lender with an imprint in Florida, the following types of loans are subject to payment of the Florida Documentary Stamp Tax: Stamp tax on documents is usually paid to the clerk or clerk of the county when the deed is registered. However, if the document is seized after the 20th day of the month following the date of delivery of the document, it must be paid directly to the Florida Department of Revenue. Many states impose some sort of tax on transfers of ownership. Florida calls its tax the documentary stamp tax. Individual counties are responsible for collecting the tax, which is then passed on to the state treasury for proper use. In Florida, the tax is due when the deed is presented to the county official for filing.

But what if the loan is not secured by real estate in Florida? An unregistered document, such as a promissory note or other written obligation to pay money, is also taxable, and it is the lender who is responsible for paying the Florida Documentary Stamp Tax directly to the Florida Department of Revenue. Stamp tax on documents is payable on the total amount of the debt or bond proven by the tax document, in the amount of 35 cents per $100 or part thereof, but the tax is limited to $2,450.00. See §201.08, Fla. Stat. (2020) In Florida, no stamp tax on documents is due for this type of transfer if (a) no amount of money or other consideration is paid in exchange for the property and (b) there is no mortgage on the property. Otherwise, the stamp tax on the documents will be levied on the outstanding balance of the mortgage or on the value specified for the property. Documentary stamp duty is levied on documents that transfer interests in florida real estate, such as.B, warranty deeds and termination deeds. Additional taxes are levied on fuel, tobacco, communication services and more. For a complete account of taxes levied in Florida, visit the Florida Department of Revenue website.

There are also document stamps and intangible taxes on bonds such as debt securities and mortgages. Stamp tax on promissory notes (buyer`s cost) is imposed at a rate of 0.35 cents per $100 or part thereof. which is capped at $2,450. See, Fla. Stat. § 201.08 (1) (a) Sherry buys a boat briefs reserved in the marina of her Bay County Condo Association, and she pays $5,000 for the panties. Since there is no other consideration for the transfer, the tax is calculated at $5,000. Note: There are a number of other means of transportation that are exempt from Florida`s documentary stamp tax.

These are set out in Florida Administrative Rule 12B-4.014. For unregistered documents, businesses or individuals who conduct an average of five (5) or more taxable transactions per month must register to report and pay stamp tax. .