TIP # 02B04-01
DATE ISSUED: May 15, 2002
Legislative Changes Affecting
Documentary Stamp Tax
Changes That Took Effect March 14, 2002
Certificate of Title Issued in a Foreclosure Proceeding
This new law provides that when real property is sold by judicial sale based on an order or final judgment issued in a foreclosure proceeding, documentary stamp tax must be calculated on the final bid amount received for the property at the foreclosure sale. This law also requires the Clerk of the Court to collect the tax from the highest bidder when he or she files and records the certificate of title.
This new law is intended to clarify existing law, and must be applied retroactively.
Notation on Recorded Documents
Every recorded document must include a notation indicating the amount of documentary stamp tax paid and the county where payment is made. A Clerk of the Court, a county comptroller, or a designated agent of the Clerk or comptroller can make this notation. This new law allows the notation to be signed, initialed, or stamped with the name or initials of the Clerk, comptroller, or agent. Previously, only a signature was acceptable.
Changes That Took Effect May 1, 2002
Tax on Unsecured Notes Limited to $2,450
The amount of documentary stamp tax imposed on unsecured notes and other written obligations to pay money that are made, executed, delivered, sold, transferred, or assigned in Florida, has been limited to a maximum of $2,450. The amount of tax imposed on mortgages or other liens filed or recorded in Florida continues to be due based on the total amount of the notes or other written obligations evidenced thereby.
Elimination of Tax on Original Issues of Stock
The original issuance in Florida of certificates of stock or shares, or certificates of profits or interests in property or accumulations is no longer subject to documentary stamp tax. This law change applies regardless of whether the issuance of such certificates is due to a business organization or reorganization.
Exemption for Employee Relocation Activity
The documentary stamp tax no longer applies to a contract, or documents related to the contract, to sell the residence of an employee relocating at the direction of the employer, if the sales contract is between the employee and employer, or between the employee and a person in the business of providing employee relocation services. Taxes on such transactions only apply to the transfer of the residence by deed that vests legal title in a named grantee.
References: Chapters 2002-8 and 2002-218, Laws of Florida; Sections 201.02(8), 201.05, and 201.08(1), Florida Statutes
FOR MORE INFORMATION
This document is intended to alert you to the requirements contained in Florida laws and administrative rules. It does not by its own effect create rights or require compliance.
For forms and other information, visit our site at www.myflorida.com/dor. Or call Taxpayer Services, Monday through Friday, 8:00 a.m., to 7:00 p.m., ET, at 800-352-3671 (for Florida residents only), or 850-488-6800
Hearing- or speech-impaired persons should call our TDD at 1-800-367-8331 or 850-922-1115.
For a detailed written response to your questions, write the Florida Department of Revenue, Taxpayer Services, 1379 Blountstown Highway, Tallahassee, FL 32304-2716.
To receive a fax copy of a form, call 850-922-3676 from your fax machine telephone.