Senate Bill 2496c1

    Florida Senate - 1999                           CS for SB 2496

    By the Committee on Fiscal Resource and Senator Horne





    314-1983-99

  1                      A bill to be entitled

  2         An act relating to the tax on intangible

  3         personal property; amending s. 199.143, F.S.;

  4         revising the method of calculating the tax on

  5         future advances; providing an effective date.

  6

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

  8

  9         Section 1.  Section 199.143, Florida Statutes, is

10  amended to read:

11         199.143  Future advances.--

12         (1)  Except as provided in subsection (3), if the

13  mortgage, deed of trust, or other lien is recorded or executed

14  after December 31, 1985, and secures a line of credit or

15  otherwise secures future advances, as provided in s. 697.04,

16  the nonrecurring tax shall initially be paid on the initial

17  obligation secured, excluding future advances.  Each time an

18  additional amount is borrowed or a future advance is made,

19  additional nonrecurring tax shall be paid on the amount of the

20  advance.  However, any increase in the amount of original

21  indebtedness caused by interest accruing under an adjustable

22  interest rate obligation having an initial interest rate

23  adjustment interval of not less than 6 months shall be taxable

24  as a future advance only to the extent such increase is a

25  computable sum certain when the original indebtedness is

26  incurred.

27         (2)  The trustee, if a deed of trust, or the owner of

28  the obligation, if a mortgage or other lien, making the

29  advance shall pay the additional tax to the clerk to whom the

30  initial tax was paid.  The clerk shall note the amount

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






    Florida Senate - 1999                           CS for SB 2496
    314-1983-99




  1  received upon the instrument, if one has been recorded, or

  2  shall otherwise give a receipt.

  3         (3)  If the property subject to the mortgage, deed of

  4  trust, or other lien which secures a line of credit is a

  5  residence of the borrower at the time the mortgage, deed of

  6  trust, or other lien is created, then the nonrecurring tax

  7  shall be paid as provided in s. 199.135 on the maximum amount

  8  of the line of credit, except as limited by s. 199.133, and no

  9  further nonrecurring tax shall be due on any borrowing under

10  the line of credit.  As used in this subsection, "residence"

11  includes only a dwelling unit that is a primary, secondary, or

12  vacation home of the borrower, who is a natural person, and

13  that has been primarily occupied for residential or

14  recreational purposes at any time during the immediately

15  preceding 1-year period by the borrower or by the borrower's

16  spouse or children.  The term excludes any dwelling that is

17  used primarily as a rental unit.  Use by a member of the

18  borrower's immediate family for consideration is deemed rental

19  of the dwelling unit.  Notwithstanding the fact that title to

20  a dwelling unit is held by a trustee, the dwelling unit shall

21  be considered a residence of the borrower and may be used as

22  security for a line of credit under this subsection, as long

23  as the dwelling unit is a residence of the borrower, as

24  defined in this subsection.

25         Section 2.  This act shall take effect July 1, 1999.

26

27          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
28                             SB 2496

29

30  This committee substitute removes sections of the bill which
    repeal the intangibles tax on trusts held by Florida trustees.
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