Senate Bill sb2140

CODING: Words stricken are deletions; words underlined are additions.
    Florida Senate - 2001                                  SB 2140

    By Senator Rossin





    35-903-01                                          See HB 1009

  1                      A bill to be entitled

  2         An act relating to the excise tax on documents;

  3         amending s. 201.08, F.S.; providing a limit on

  4         the amount of the tax on promissory or

  5         nonnegotiable notes, written obligations to pay

  6         money, and assignments of wages or other

  7         compensation and on certain promissory or

  8         nonnegotiable notes, written obligations to pay

  9         money, or other compensation made in connection

10         with sales made under retail charge account

11         services; providing an effective date.

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

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15         Section 1.  Subsection (1) and paragraph (a) of

16  subsection (2) of section 201.08, Florida Statutes, are

17  amended to read:

18         201.08  Tax on promissory or nonnegotiable notes,

19  written obligations to pay money, or assignments of wages or

20  other compensation; exception.--

21         (1)(a)  On promissory notes, nonnegotiable notes,

22  written obligations to pay money, or assignments of salaries,

23  wages, or other compensation made, executed, delivered, sold,

24  transferred, or assigned in the state, and for each renewal of

25  the same, the tax shall be 35 cents on each $100 or fraction

26  thereof of the indebtedness or obligation evidenced thereby.

27  The tax on any document described in this paragraph shall not

28  exceed $2,450.

29         (b)  On mortgages, trust deeds, security agreements, or

30  other evidences of indebtedness filed or recorded in this

31  state, and for each renewal of the same, the tax shall be 35

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






    Florida Senate - 2001                                  SB 2140
    35-903-01                                          See HB 1009




  1  cents on each $100 or fraction thereof of the indebtedness or

  2  obligation evidenced thereby.  Mortgages, including, but not

  3  limited to, mortgages executed without the state and recorded

  4  in the state, which incorporate the certificate of

  5  indebtedness, not otherwise shown in separate instruments, are

  6  subject to the same tax at the same rate.  When there is both

  7  a mortgage, trust deed, or security agreement and a note,

  8  certificate of indebtedness, or obligation, the tax shall be

  9  paid on the mortgage, trust deed, or security agreement at the

10  time of recordation.  A notation shall be made on the note,

11  certificate of indebtedness, or obligation that the tax has

12  been paid on the mortgage, trust deed, or security agreement.

13  If the mortgage, trust deed, security agreement, or other

14  evidence of indebtedness subject to the tax levied by this

15  section secures future advances, as provided in s. 697.04, the

16  tax shall be paid at the time of recordation on the initial

17  debt or obligation secured, excluding future advances; at the

18  time and so often as any future advance is made, the tax shall

19  be paid on all sums then advanced regardless of where such

20  advance is made. Notwithstanding the aforestated general rule,

21  any increase in the amount of original indebtedness caused by

22  interest accruing under an adjustable rate note or mortgage

23  having an initial interest rate adjustment interval of not

24  less than 6 months shall be taxable as a future advance only

25  to the extent such increase is a computable sum certain when

26  the document is executed.  Failure to pay the tax shall not

27  affect the lien for any such future advance given by s.

28  697.04, but any person who fails or refuses to pay such tax

29  due by him or her is guilty of a misdemeanor of the first

30  degree.  The mortgage, trust deed, or other instrument shall

31  not be enforceable in any court of this state as to any such

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






    Florida Senate - 2001                                  SB 2140
    35-903-01                                          See HB 1009




  1  advance unless and until the tax due thereon upon each advance

  2  that may have been made thereunder has been paid.

  3         (2)(a)  On promissory notes, nonnegotiable notes,

  4  written obligations to pay money, or other compensation, made,

  5  executed, delivered, sold, transferred, or assigned in the

  6  state, in connection with sales made under retail charge

  7  account services, incident to sales which are not conditional

  8  in character and which are not secured by mortgage or other

  9  pledge of purchaser, the tax shall be 35 cents on each $100 or

10  fraction thereof of the gross amount of the indebtedness

11  evidenced by such instruments, payable quarterly on such forms

12  and under such rules and regulations as may be promulgated by

13  the Department of Revenue. The tax on any document described

14  in this paragraph shall not exceed $2,450.

15         Section 2.  This act shall take effect July 1, 2001.

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18                          HOUSE SUMMARY

19
      Provides a $2,450 limit on the amount of the documentary
20    stamp tax on promissory or nonnegotiable notes, written
      obligations to pay money, and assignments of wages or
21    other compensation and on certain promissory or
      nonnegotiable notes, written obligations to pay money, or
22    other compensation made in connection with sales made
      under retail charge account services.
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CODING: Words stricken are deletions; words underlined are additions.