Florida documentary stamp taxes and the intangible tax on mortgages

Three taxes, two bases

Florida closing computations distinguish the deed's taxable consideration from the debt secured by the mortgage. Deed documentary stamps generally use $0.70 for each $100 or fraction of $100 of consideration. Miami-Dade uses $0.60 per $100 or fraction, plus a $0.45 surtax per $100 or fraction for transfers other than a single-family residence. These deed rates do not apply to mortgage debt.

Documentary stamps on a taxable mortgage obligation use $0.35 for each $100 or fraction of $100. Divide the taxable debt by 100, round the number of units upward to a whole unit, and multiply by $0.35. A note and mortgage evidencing the same debt do not create two full stamp taxes: Florida provides for payment on the recorded mortgage and a notation on the note.

Florida's nonrecurring intangible tax is two mills: $0.002 per taxable dollar, or $2 per $1,000. It applies to obligations secured by Florida real property. For an ordinary new loan fully secured by sufficient Florida real estate, multiply the taxable principal by 0.002. Do not round that principal upward to a $100 unit. The statutory base is the just valuation of the secured obligation; mixed collateral and limited collateral value can affect it.

Work a closing

Assume a taxable Orange County sale for $300,050 and a new, fully taxable $240,050 mortgage loan secured entirely by sufficient Florida real estate. Deed: $300,050 / $100 = 3,000.5 units; round up to 3,001; multiply by $0.70 = $2,100.70. Mortgage stamps: $240,050 / $100 = 2,400.5; round up to 2,401; multiply by $0.35 = $840.35. Intangible tax: $240,050 × 0.002 = $480.10. Total: $2,100.70 + $840.35 + $480.10 = $3,421.15.

Payment and previously taxed debt

Sellers customarily pay deed stamps, and borrowers customarily pay loan stamps and the intangible tax as closing charges; the contract can allocate costs differently. Customary allocation is distinct from statutory liability. Section 199.135 makes the intangible taxpayer solely liable but permits passing the charge to the borrower. It generally requires payment when the instrument is presented for recording, or within 30 days after creation of the obligation if no instrument is recorded within that period.

Do not assume every replacement instrument triggers tax on its full face amount. Florida provides conditional renewal relief for documentary stamps and relief for certain previously taxed assignments, assumptions, and refinancings for intangible tax. Check the applicable conditions separately for each tax. These examples assume fully taxable transactions; exemptions, collateral allocation, and prior tax payments can change the result.