Florida Senate - 2009                        COMMITTEE AMENDMENT
       Bill No. SB 728
       
       
       
       
       
       
                                Barcode 345254                          
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: FAV            .                                
                  02/18/2009           .                                
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       The Committee on Judiciary (Baker) recommended the following:
       
    1         Senate Amendment (with title amendment)
    2         
    3         Delete lines 9 - 35
    4  and insert:
    5         Section 1. Section 201.02, Florida Statutes, is amended to
    6  read:
    7         201.02 Tax on deeds and other instruments relating to real
    8  property or interests in real property.—
    9         (1) On deeds, instruments, or writings whereby any lands,
   10  tenements, or other real property, or any interest therein,
   11  shall be granted, assigned, transferred, or otherwise conveyed
   12  to, or vested in, the purchaser or any other person by his or
   13  her direction, on each $100 of the consideration therefor the
   14  tax shall be 70 cents. When the full amount of the consideration
   15  for the execution, assignment, transfer, or conveyance is not
   16  shown in the face of such deed, instrument, document, or
   17  writing, the tax shall be at the rate of 70 cents for each $100
   18  or fractional part thereof of the consideration therefor. For
   19  purposes of this section, consideration includes, but is not
   20  limited to, the money paid or agreed to be paid; the discharge
   21  of an obligation; and the amount of any mortgage, purchase money
   22  mortgage lien, or other encumbrance, whether or not the
   23  underlying indebtedness is assumed. If the consideration paid or
   24  given in exchange for real property or any interest therein
   25  includes property other than money, it is presumed that the
   26  consideration is equal to the fair market value of the real
   27  property or interest therein.
   28         (2) The tax imposed by subsection (1) shall also be payable
   29  upon documents by which the right is granted to a tenant
   30  stockholder to occupy an apartment in a building owned by a
   31  cooperative apartment corporation or in a dwelling on real
   32  property owned by any other form of cooperative association as
   33  defined in s. 719.103.
   34         (3) The tax imposed by subsection (2) shall be paid by the
   35  purchaser, and the document recorded in the office of the clerk
   36  of the circuit court as evidence of ownership.
   37         (4) The tax imposed by subsection (1) shall also be payable
   38  upon documents which convey or transfer, pursuant to s. 689.071,
   39  any beneficial interest in lands, tenements, or other real
   40  property, or any interest therein, even though such interest may
   41  be designated as personal property, notwithstanding the
   42  provisions of s. 689.071(6). The tax shall be paid upon
   43  execution of any such document.
   44         (5) All conveyances of real property to a partner from a
   45  partnership which property was conveyed to the partnership after
   46  July 1, 1986, are taxable if:
   47         (a) The partner receiving the real property from the
   48  partnership is a partner other than the partner who conveyed the
   49  real property to the partnership; or
   50         (b) The partner receiving the real property from the
   51  partnership is the partner who conveyed the real property to the
   52  partnership and there is a mortgage debt or other debt secured
   53  by such real property for which the partner was not personally
   54  liable prior to conveying the real property to the partnership.
   55  For purposes of this subsection, the value of the consideration
   56  paid for the conveyance of the real property to the partner from
   57  the partnership includes, but is not limited to, the amount of
   58  any outstanding mortgage debt or other debt which the partner
   59  pays or agrees to pay in exchange for the real property,
   60  regardless of whether the partner was personally liable for the
   61  debts of the partnership prior to the conveyance to the partner
   62  from the partnership.
   63         (6) Taxes imposed by this section shall not apply to any
   64  assignment, transfer, or other disposition, or any document,
   65  which arises out of a transfer of real property from a nonprofit
   66  organization to the Board of Trustees of the Internal
   67  Improvement Trust Fund, to any state agency, to any water
   68  management district, or to any local government. For purposes of
   69  this subsection, “nonprofit organization” means an organization
   70  whose purpose is the preservation of natural resources and which
   71  is exempt from federal income tax under s. 501(c)(3) of the
   72  Internal Revenue Code. The Department of Revenue shall provide a
   73  form, or a place on an existing form, for the nonprofit
   74  organization to indicate its exempt status.
   75         (7) Taxes imposed by this section do not apply to a deed,
   76  transfer, or conveyance between spouses or former spouses
   77  pursuant to an action for dissolution of their marriage wherein
   78  the real property is or was their marital home or an interest
   79  therein. Taxes paid pursuant to this section shall be refunded
   80  in those cases in which a deed, transfer, or conveyance occurred
   81  1 year before a dissolution of marriage. This subsection applies
   82  in spite of any consideration as defined in subsection (1). This
   83  subsection does not apply to a deed, transfer, or conveyance
   84  executed before July 1, 1997.
   85         (8) Taxes imposed by this section do not apply to a
   86  contract to sell the residence of an employee relocating at his
   87  or her employer's direction or to documents related to the
   88  contract, which contract is between the employee and the
   89  employer or between the employee and a person in the business of
   90  providing employee relocation services. In the case of such
   91  transactions, taxes apply only to the transfer of the real
   92  property comprising the residence by deed that vests legal title
   93  in a named grantee.
   94         (9) A certificate of title issued by the clerk of court
   95  under s. 45.031(5) in a judicial sale of real property under an
   96  order or final judgment issued pursuant to a foreclosure
   97  proceeding is subject to the tax imposed by subsection (1).
   98  However, the amount of the tax shall be computed based solely on
   99  the amount of the highest and best bid received for the property
  100  at the foreclosure sale. This subsection is intended to clarify
  101  existing law and shall be applied retroactively.
  102         (10)(a) In recognition of the special escrow requirements
  103  that apply to sales of timeshare interests in timeshare plans
  104  pursuant to s. 721.08, tax on deeds or other instruments
  105  conveying any interest in Florida real property which are
  106  executed in conjunction with the sale by a developer of a
  107  timeshare interest in a timeshare plan is due and payable on the
  108  earlier of the date on which:
  109         1. The deed or other instrument conveying the interest in
  110  Florida real property is recorded; or
  111         2. All of the conditions precedent to the release of the
  112  purchaser's escrowed funds or other property pursuant to s.
  113  721.08(2)(c) have been met, regardless of whether the developer
  114  has posted an alternative assurance. Tax due pursuant to this
  115  subparagraph is due and payable on or before the 20th day of the
  116  month following the month in which these conditions were met.
  117         (b)1. If tax has been paid to the department pursuant to
  118  subparagraph (a)2., and the deed or other instrument conveying
  119  the interest in Florida real property with respect to which the
  120  tax was paid is subsequently recorded, a notation reflecting the
  121  prior payment of the tax must be made upon the deed or other
  122  instrument conveying the interest in Florida real property.
  123         2. Notwithstanding paragraph (a), if funds are designated
  124  on a closing statement as tax collected from the purchaser, but
  125  a default or cancellation occurs pursuant to s. 721.08(2)(a) or
  126  (b) and no deed or other instrument conveying interest in
  127  Florida real property has been recorded or delivered to the
  128  purchaser, the tax must be paid to the department on or before
  129  the 20th day of the month following the month in which the funds
  130  are available for release from escrow unless the funds have been
  131  refunded to the purchaser.
  132         (c) The department may adopt rules to administer the method
  133  for reporting tax due under this subsection.
  134         (11)The documentary stamp tax imposed by this section
  135  applies to a deed, instrument, or writing that transfers any
  136  interest in real property pursuant to a short sale, as defined
  137  in this subsection. The taxable consideration for a short sale
  138  transfer does not include unpaid indebtedness that is forgiven
  139  or released by a mortgagee holding a mortgage on the grantor’s
  140  interest in the property. A short sale is a purchase and sale of
  141  real property in which:
  142         (a)The grantor’s interest in the real property is
  143  encumbered by a mortgage or mortgages securing indebtedness in
  144  an aggregate amount greater than the purchase price paid by the
  145  grantee;
  146         (b)A mortgagee releases the real property from its
  147  mortgage in exchange for a partial payment of less than all of
  148  the outstanding mortgage indebtedness owing to the releasing
  149  mortgagee;
  150         (c)Neither the releasing mortgagee nor any person related
  151  to the releasing mortgagee receives any interest in the property
  152  transferred; and
  153         (d)The releasing mortgagee is not controlled by or related
  154  to the grantor or the grantee, and the grantor and the grantee
  155  are not controlled by or related to each other.
  156         
  157  ================= T I T L E  A M E N D M E N T ================
  158         And the title is amended as follows:
  159         Delete lines 3 - 5
  160  and insert:
  161  amending s. 201.02, F.S.; imposing the tax on deeds,
  162  instruments, and other writings on the consideration for a
  163  transfer of real property pursuant to a short sale; providing
  164  that the consideration subject to the tax does not include
  165  unpaid indebtedness that is forgiven by a mortgagee; defining
  166  the term “short sale”; providing an effective date.