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TIP #98(B)4-02
Date Issued: 06/12/98

Legislative Changes Affecting Documentary Stamp Tax.

Beginning July 1, 1998, documentary stamp tax on renewal notes will change as follows:

Term Obligation

A renewal note evidencing a term obligation that increases the unpaid balance of the original note is subject to documentary stamp tax only on the increased amount.  The renewal note must have no new obligors and must evidence tax was paid on the original note.

The tax is now due on the difference between the unpaid balance of the original note and the face amount of the renewal note.  A ``sandwich" note or separate side note is no longer required.

Revolving Obligation

A renewal note evidencing a revolving obligation that increases the original face amount of the obligation is subject to documentary stamp tax only on the increased amount. The renewal note must have no new obligors and must evidence tax was paid on the original note.

The tax is now due on the difference between the face amount of the original obligation and the face amount of the renewal.  A ``sandwich"  note or separate side note is no longer required.


References:
Ch. 98-187, L.O.F.
s. 201.09(1), F.S.

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