Senate Bill 2496er
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1999 Legislature CS for SB 2496, 1st Engrossed
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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; amending s. 199.185, F.S.;
6 amending the exemption that applies to certain
7 charitable trusts; amending s. 199.185, F.S.;
8 amending exemptions from taxes imposed under
9 ch. 199, F.S.; providing an effective date.
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11 Be It Enacted by the Legislature of the State of Florida:
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13 Section 1. Section 199.143, Florida Statutes, is
14 amended to read:
15 199.143 Future advances.--
16 (1) Except as provided in subsection (3), if the
17 mortgage, deed of trust, or other lien is recorded or executed
18 after December 31, 1985, and secures a line of credit or
19 otherwise secures future advances, as provided in s. 697.04,
20 the nonrecurring tax shall initially be paid on the initial
21 obligation secured, excluding future advances. Each time an
22 additional amount is borrowed or a future advance is made,
23 additional nonrecurring tax shall be paid on the amount of the
24 advance. However, any increase in the amount of original
25 indebtedness caused by interest accruing under an adjustable
26 interest rate obligation having an initial interest rate
27 adjustment interval of not less than 6 months shall be taxable
28 as a future advance only to the extent such increase is a
29 computable sum certain when the original indebtedness is
30 incurred.
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1999 Legislature CS for SB 2496, 1st Engrossed
1 (2) The trustee, if a deed of trust, or the owner of
2 the obligation, if a mortgage or other lien, making the
3 advance shall pay the additional tax to the clerk to whom the
4 initial tax was paid. The clerk shall note the amount
5 received upon the instrument, if one has been recorded, or
6 shall otherwise give a receipt.
7 (3) If the property subject to the mortgage, deed of
8 trust, or other lien which secures a line of credit is a
9 residence of the borrower at the time the mortgage, deed of
10 trust, or other lien is created, then the nonrecurring tax
11 shall be paid as provided in s. 199.135 on the maximum amount
12 of the line of credit, except as limited by s. 199.133, and no
13 further nonrecurring tax shall be due on any borrowing under
14 the line of credit. As used in this subsection, "residence"
15 includes only a dwelling unit that is a primary, secondary, or
16 vacation home of the borrower, who is a natural person, and
17 that has been primarily occupied for residential or
18 recreational purposes at any time during the immediately
19 preceding 1-year period by the borrower or by the borrower's
20 spouse or children. The term excludes any dwelling that is
21 used primarily as a rental unit. Use by a member of the
22 borrower's immediate family for consideration is deemed rental
23 of the dwelling unit. Notwithstanding the fact that title to
24 a dwelling unit is held by a trustee, the dwelling unit shall
25 be considered a residence of the borrower and may be used as
26 security for a line of credit under this subsection, as long
27 as the dwelling unit is a residence of the borrower, as
28 defined in this subsection.
29 Section 2. Effective January 1, 2000, subsection (4)
30 of section 199.185, Florida Statutes, 1998 Supplement, is
31 amended to read:
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1999 Legislature CS for SB 2496, 1st Engrossed
1 199.185 Property exempted from annual and nonrecurring
2 taxes.--
3 (4) Charitable trusts, 95 percent of the income of
4 which is paid to organizations exempt from federal income tax
5 pursuant to s. 501(c)3 of the Internal Revenue Code, shall be
6 exempt from 1 mill of the tax imposed in s. 199.032.
7 Section 3. Paragraph (j) of subsection (1) of section
8 199.185, Florida Statutes, 1998 Supplement, is amended to
9 read:
10 199.185 Property exempted from annual and nonrecurring
11 taxes.--
12 (1) The following intangible personal property shall
13 be exempt from the annual and nonrecurring taxes imposed by
14 this chapter:
15 (j) Units of a unit investment trust and shares or
16 units of, or other undivided interest in, a business trust
17 organized under an agreement, indenture, or declaration of
18 trust and registered under the Investment Company Act of 1940,
19 as amended, shall be exempt if at least 90 percent of the net
20 asset value of the portfolio of assets corresponding to such
21 shares, units, or undivided interests is invested in assets
22 that are exempt from the tax imposed by s. 199.032 whose
23 portfolio of assets consists solely of assets exempt under
24 this section.
25 Section 4. This act shall take effect July 1, 1999.
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