Senate Bill 1082c1

    Florida Senate - 1998                           CS for SB 1082

    By the Committee on Ways and Means; and Senator Ostalkiewicz





    301-2245-98

  1                      A bill to be entitled

  2         An act relating to the excise tax on documents;

  3         amending s. 201.09, F.S.; prescribing liability

  4         for the tax when a renewal note increases the

  5         unpaid balance or the original face amount of

  6         an original contract and obligation; providing

  7         a retroactive exemption for taxes on certain

  8         promissory notes; providing an effective date.

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10  Be It Enacted by the Legislature of the State of Florida:

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12         Section 1.  Subsection (1) of section 201.09, Florida

13  Statutes, is amended to read:

14         201.09  Renewal of existing promissory notes and

15  mortgages; exemption.--

16         (1)  When any promissory note is given in renewal of

17  any existing promissory note, which renewal note only extends

18  or continues the identical contractual obligations of the

19  original promissory note and evidences part or all of the

20  original indebtedness evidenced thereby, not including any

21  accumulated interest thereon and without enlargement in any

22  way of the original contract and obligation, such renewal note

23  shall not be subject to taxation under this chapter if such

24  renewal note has attached to it the original promissory note

25  with the proper notation thereon as required by s. 201.133.

26  In order to be exempt from taxation under this section, a

27  renewal note evidencing a term obligation shall not be

28  executed by any person other than the original obligor and

29  must renew and extend only the unpaid balance of the original

30  contract and obligation.  In order to be exempt from taxation

31  under this section, a renewal note evidencing a revolving

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






    Florida Senate - 1998                           CS for SB 1082
    301-2245-98




  1  obligation shall not be executed by any person other than the

  2  original obligor and must renew and extend no more than the

  3  original face amount of the original contract and obligation.

  4  A renewal note evidencing a term obligation which increases

  5  the unpaid balance of the original contract and obligation is

  6  taxable only on the face amount of the increase.  A renewal

  7  note evidencing a revolving obligation which increases the

  8  original face amount of the original contract and obligation

  9  is taxable only on the amount of the increase.

10         Section 2.  Section 3 of chapter 97-123, Laws of

11  Florida, applies retroactively to the renewal of any

12  promissory note evidencing a revolving line obligation

13  executed on or after January 1, 1990, for which the tax under

14  section 201.09, Florida Statutes, has not been paid and which

15  is the subject of a pending protest that was initiated prior

16  to January 1, 1998.

17         Section 3.  This act shall take effect July 1, 1998.

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19          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
20                             SB 1082

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22  This committee substitute adds a retroactive tax exemption for
    renewal of any promissory note evidencing a revolving line
23  obligation enacted on or after January 1, 1990, for which tax
    under s. 201.09, F.S., has not been paid and which is the
24  subject of a pending protest that was initiated prior to
    January 1, 1998.
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