House Bill 4373er

    ENROLLED

    1998 Legislature                      HB 4373, First Engrossed



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  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         that s. 3, ch. 97-123, Laws of Florida, which

  8         exempts from tax a renewal note evidencing a

  9         revolving obligation which does not increase

10         the original face amount of the original

11         contract and obligation, applies retroactively

12         to certain renewal notes; providing effective

13         dates.

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

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

18  Statutes, is amended to read:

19         201.09  Renewal of existing promissory notes and

20  mortgages; exemption.--

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

22  any existing promissory note, which renewal note only extends

23  or continues the identical contractual obligations of the

24  original promissory note and evidences part or all of the

25  original indebtedness evidenced thereby, not including any

26  accumulated interest thereon and without enlargement in any

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

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

29  renewal note has attached to it the original promissory note

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

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


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




    ENROLLED

    1998 Legislature                      HB 4373, First Engrossed



  1  renewal note evidencing a term obligation shall not be

  2  executed by any person other than the original obligor and

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

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

  5  under this section, a renewal note evidencing a revolving

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

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

  8  original face amount of the original contract and obligation.

  9  A renewal note evidencing a term obligation which increases

10  the unpaid balance of the original contract and obligation but

11  which otherwise meets the exemption criteria of this section

12  is taxable only on the face amount of the increase.  A renewal

13  note evidencing a revolving obligation which increases the

14  original face amount of the original contract and obligation

15  but which otherwise meets the exemption criteria of this

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

17         Section 2.  (1)  Section 3 of chapter 97-123, Laws of

18  Florida, applies retroactively to the renewal of any

19  promissory note evidencing a revolving obligation executed on

20  or after January 1, 1990, for which the tax under s. 201.09,

21  Florida Statutes, has not been paid and which is the subject

22  of a pending protest that was initiated prior to January 1,

23  1998.

24         (2)  This section shall take effect upon this act

25  becoming a law.

26         Section 3.  Except as otherwise provided herein, this

27  act shall take effect July 1 of the year in which enacted.

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