HB 93

1
A bill to be entitled
2An act relating to the excise tax on documents; amending
3s. 201.02, F.S.; revising criteria determining liability
4for payment of the tax; providing an alternative
5methodology for payment of the tax under certain
6circumstances; providing requirements and procedures;
7providing application; providing an effective date.
8
9Be It Enacted by the Legislature of the State of Florida:
10
11     Section 1.  Subsection (1) of section 201.02, Florida
12Statutes, is amended to read:
13     201.02  Tax on deeds and other instruments relating to real
14property or interests in real property.--
15     (1)(a)  Except as otherwise expressly exempted by this
16chapter, all deeds, instruments, writings, or other documents
17that transfer an interest in real property shall be subject to
18the tax imposed by this section. On deeds, instruments, or
19writings whereby any lands, tenements, or other real property,
20or any interest therein, shall be granted, assigned,
21transferred, or otherwise conveyed to, or vested in, the
22purchaser or any other person by his or her direction, on each
23$100 of the consideration therefor the tax shall be 70 cents.
24When the full amount of the consideration for the execution,
25assignment, transfer, or conveyance is not shown in the face of
26such deed, instrument, document, or writing, the tax shall be at
27the rate of 70 cents for each $100 or fractional part thereof of
28the consideration therefor. For purposes of this section,
29consideration includes, but is not limited to, the money paid or
30agreed to be paid; the discharge of an obligation; and the
31amount of any mortgage, purchase money mortgage lien, or other
32encumbrance, whether or not the underlying indebtedness is
33assumed; and any increase in the value of any ownership interest
34in a grantee entity or any other entity. If the consideration
35paid or given in exchange for real property or any interest
36therein includes property other than money or is not
37determinable at the time of transfer, it is presumed that the
38consideration is equal to the fair market value of the real
39property or interest therein and the burden of proving the
40contrary shall be on a person liable for payment of the tax.
41     (b)  If:
42     1.  A deed, instrument, writing, or other document grants,
43assigns, conveys, or otherwise transfers any interest in real
44property between an owner or owners of an artificial legal
45entity and that entity, or between two artificial legal entities
46if those entities are owned by the same person or persons;
47     2.  There is a mere change in form of ownership without
48effecting any change in beneficial ownership interests; and
49     3.  The only consideration given is an increase in the
50value of any ownership interests in the grantee entity or any
51other entity,
52
53in lieu of paying any tax due on that document the parties to
54the transfer may make an election on or before the date of the
55transfer on a form issued by the department to not make payment
56of the tax due on that document and instead pay the tax that
57becomes due upon a transfer of an ownership interest in the
58grantee artificial legal entity or pursuant to a subsequent
59document that transfers an interest in the real property,
60whichever occurs first. The form on which such election is made
61shall be attached to and recorded with the deed, instrument,
62writing, or other document that grants, assigns, conveys, or
63otherwise transfers any interest in the real property. If such
64election has been timely made, the tax shall be due only once
65upon the transfer of an ownership interest in the grantee
66artificial legal entity or a subsequent transfer of an interest
67in the real property, whichever occurs first. Upon the transfer
68of ownership interest in the artificial legal entity or a
69subsequent transfer of an interest in the real property, the
70amount of the consideration shall be the greater of the
71consideration as determined under paragraph (a) at the time of
72the transfer or the fair market value of the interest in the
73real property at the time of the transfer. However, this
74provision shall not apply if the transfer of an ownership
75interest in the artificial legal entity or subsequent transfer
76of an interest in the real property is a return of the interest
77in the real property from the artificial legal entity to the
78original owner or owners resulting in no change in the
79beneficial ownership interests previously held in the real
80property.
81     Section 2.  This act shall take effect upon becoming a law
82and shall apply to transfers of property for which the first
83transfer to an artificial entity occurs after the effective date
84of this act.


CODING: Words stricken are deletions; words underlined are additions.