House Bill 4373

    Florida House of Representatives - 1998                HB 4373

        By Representative Flanagan






  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         an effective date.

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

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

12  Statutes, is amended to read:

13         201.09  Renewal of existing promissory notes and

14  mortgages; exemption.--

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

16  any existing promissory note, which renewal note only extends

17  or continues the identical contractual obligations of the

18  original promissory note and evidences part or all of the

19  original indebtedness evidenced thereby, not including any

20  accumulated interest thereon and without enlargement in any

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

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

23  renewal note has attached to it the original promissory note

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

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

26  renewal note evidencing a term obligation shall not be

27  executed by any person other than the original obligor and

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

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

30  under this section, a renewal note evidencing a revolving

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

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






    Florida House of Representatives - 1998                HB 4373

    570-147-98






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

  2  original face amount of the original contract and obligation.

  3  A renewal note evidencing a term obligation which increases

  4  the unpaid balance of the original contract and obligation but

  5  which otherwise meets the exemption criteria of this section

  6  is 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  but which otherwise meets the exemption criteria of this

10  section is taxable only on the amount of the increase.

11         Section 2.  This act shall take effect July 1 of the

12  year in which enacted.

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15                          SENATE SUMMARY

16    Provides that a renewal note that increases the unpaid
      balance or the original face amount of the original
17    contract and obligation and that otherwise meets criteria
      for exemption is subject to the documentary stamp tax for
18    the amount of the increase only.

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