Senate Bill sb0462c1
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Florida Senate - 2002 CS for SB 462
By the Committee on Finance and Taxation; and Senator Pruitt
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1 A bill to be entitled
2 An act relating to the excise tax on documents;
3 amending s. 201.08, F.S.; providing for the
4 maximum tax that must be paid on unsecured
5 obligations; conforming cross-references;
6 providing an effective date.
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8 Be It Enacted by the Legislature of the State of Florida:
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10 Section 1. Subsections (1), (2), (4), and (5) of
11 section 201.08, Florida Statutes, are amended to read:
12 201.08 Tax on promissory or nonnegotiable notes,
13 written obligations to pay money, or assignments of wages or
14 other compensation; exception.--
15 (1)(a) On promissory notes, nonnegotiable notes,
16 written obligations to pay money, or assignments of salaries,
17 wages, or other compensation made, executed, delivered, sold,
18 transferred, or assigned in the state, and for each renewal of
19 the same, the tax shall be 35 cents on each $100 or fraction
20 thereof of the indebtedness or obligation evidenced thereby.
21 The tax on any document described in this paragraph may not
22 exceed $2,450.
23 (b) On mortgages, trust deeds, security agreements, or
24 other evidences of indebtedness filed or recorded in this
25 state, and for each renewal of the same, the tax shall be 35
26 cents on each $100 or fraction thereof of the indebtedness or
27 obligation evidenced thereby. Mortgages, including, but not
28 limited to, mortgages executed without the state and recorded
29 in the state, which incorporate the certificate of
30 indebtedness, not otherwise shown in separate instruments, are
31 subject to the same tax at the same rate. When there is both
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Florida Senate - 2002 CS for SB 462
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1 a mortgage, trust deed, or security agreement and a note,
2 certificate of indebtedness, or obligation, the tax shall be
3 paid on the mortgage, trust deed, or security agreement at the
4 time of recordation. A notation shall be made on the note,
5 certificate of indebtedness, or obligation that the tax has
6 been paid on the mortgage, trust deed, or security agreement.
7 If a mortgage, trust deed, security agreement, or other
8 evidence of indebtedness is subsequently filed or recorded in
9 this state to evidence an indebtedness or obligation upon
10 which tax was paid under paragraph (a) or subsection (2), tax
11 shall be paid on the mortgage, trust deed, security agreement,
12 or other evidence of indebtedness on the amount of the
13 indebtedness or obligation evidenced which exceeds the
14 aggregate amount upon which tax was previously paid under this
15 paragraph and under paragraph (a) or subsection (2). If the
16 mortgage, trust deed, security agreement, or other evidence of
17 indebtedness subject to the tax levied by this section secures
18 future advances, as provided in s. 697.04, the tax shall be
19 paid at the time of recordation on the initial debt or
20 obligation secured, excluding future advances; at the time and
21 so often as any future advance is made, the tax shall be paid
22 on all sums then advanced regardless of where such advance is
23 made. Notwithstanding the aforestated general rule, any
24 increase in the amount of original indebtedness caused by
25 interest accruing under an adjustable rate note or mortgage
26 having an initial interest rate adjustment interval of not
27 less than 6 months shall be taxable as a future advance only
28 to the extent such increase is a computable sum certain when
29 the document is executed. Failure to pay the tax shall not
30 affect the lien for any such future advance given by s.
31 697.04, but any person who fails or refuses to pay such tax
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Florida Senate - 2002 CS for SB 462
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1 due by him or her is guilty of a misdemeanor of the first
2 degree. The mortgage, trust deed, or other instrument shall
3 not be enforceable in any court of this state as to any such
4 advance unless and until the tax due thereon upon each advance
5 that may have been made thereunder has been paid.
6 (2)(a) On promissory notes, nonnegotiable notes,
7 written obligations to pay money, or other compensation, made,
8 executed, delivered, sold, transferred, or assigned in the
9 state, in connection with sales made under retail charge
10 account services, incident to sales which are not conditional
11 in character and which are not secured by mortgage or other
12 pledge of purchaser, the tax shall be 35 cents on each $100 or
13 fraction thereof of the gross amount of the indebtedness
14 evidenced by such instruments, payable quarterly on such forms
15 and under such rules and regulations as may be promulgated by
16 the Department of Revenue. The tax on any document described
17 in this paragraph may not exceed $2,450.
18 (b) Any receipt, charge slip, or other record of a
19 transaction effected with the use of a credit card, charge
20 card, or debit card shall be exempt from the tax imposed by
21 this section.
22 (4) Notwithstanding paragraph (1)(b) subsection (1), a
23 supplement or an amendment to a mortgage, deed of trust,
24 indenture, or security agreement, which supplement or
25 amendment is filed or recorded in this state in connection
26 with a new issue of bonds, shall be subject to the tax imposed
27 by paragraph (1)(b) subsection (1) only to the extent of the
28 aggregate amount of the new issue of bonds or other evidence
29 of indebtedness and not to the extent of the aggregate amount
30 of bonds or other evidence of indebtedness previously issued
31 under the instrument being supplemented or amended. In order
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Florida Senate - 2002 CS for SB 462
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1 to qualify for the tax treatment provided for in this
2 subsection, the document which evidences the increase in
3 indebtedness must show the official records book and page
4 number in which, and the county in which, the original
5 obligation and any prior increase in that obligation were
6 recorded.
7 (5) For purposes of this section, a renewal shall only
8 include modifications of an original document which change the
9 terms of the indebtedness evidenced by the original document
10 by adding one or more obligors, increasing the principal
11 balance, or changing the interest rate, maturity date, or
12 payment terms. Modifications to documents which do not modify
13 the terms of the indebtedness evidenced such as those given or
14 recorded to correct error; modify covenants, conditions, or
15 terms unrelated to the debt; sever a lien into separate liens;
16 provide for additional, substitute, or further security for
17 the indebtedness; consolidate indebtedness or collateral; add,
18 change, or delete guarantors; or which substitute a new
19 mortgagee or payee are not renewals and are not subject to tax
20 pursuant to this section. If the taxable amount of a mortgage
21 is limited by language contained in the mortgage or by the
22 application of rules limiting the tax base when there is
23 collateral in more than one state, then a modification which
24 changes such limitation or tax base shall be taxable only to
25 the extent of any increase in the limitation or tax base
26 attributable to such modification. This subsection shall not
27 be interpreted to exempt from taxation an original mortgage
28 that which would otherwise be subject to tax pursuant to
29 paragraph (1)(b) subsection (1).
30 Section 2. This act shall take effect July 1, 2002.
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Florida Senate - 2002 CS for SB 462
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1 STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
COMMITTEE SUBSTITUTE FOR
2 SB 462
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4 This committee substitute provides that if a mortgage, trust
deed, security agreement, or other evidence of indebtedness is
5 subsequently filed in Florida to secure a transaction upon
which tax was capped, tax is due on the subsequent transaction
6 on the amount of indebtedness shown on the document which
exceeds the aggregate amount upon which tax was previously
7 paid.
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