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A bill to be entitled

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An act relating to the excise tax on documents; amending

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s. 201.02, F.S.; revising criteria determining liability

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for payment of the tax; providing an alternative

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methodology for payment of the tax under certain

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circumstances; providing requirements and procedures;

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providing for the deposit of revenues into a specified

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trust fund; providing for application; providing an

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effective date.

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

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     Section 1.  Subsection (1) of section 201.02, Florida

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Statutes, is amended to read:

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     201.02  Tax on deeds and other instruments relating to real

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property or interests in real property.--

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     (1)(a) Except as otherwise expressly exempted by this

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chapter, all deeds, instruments, writings, or other documents

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that transfer an interest in real property shall be subject to

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the tax imposed by this section. On deeds, instruments, or

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writings whereby any lands, tenements, or other real property, or

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any interest therein, shall be granted, assigned, transferred, or

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otherwise conveyed to, or vested in, the purchaser or any other

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person by his or her direction, on each $100 of the consideration

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therefor the tax shall be 70 cents. When the full amount of the

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consideration for the execution, assignment, transfer, or

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conveyance is not shown in the face of such deed, instrument,

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document, or writing, the tax shall be at the rate of 70 cents

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for each $100 or fractional part thereof of the consideration

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therefor. For purposes of this section, consideration includes,

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but is not limited to, the money paid or agreed to be paid; the

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discharge of an obligation; and the amount of any mortgage,

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purchase money mortgage lien, or other encumbrance, whether or

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not the underlying indebtedness is assumed; and any increase in

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the value of any ownership interest in a grantee entity or any

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other entity. If the consideration paid or given in exchange for

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real property or any interest therein includes property other

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than money or is not determinable at the time of transfer, it is

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presumed that the consideration is equal to the fair market value

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of the real property or interest therein and the burden of

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proving the contrary shall be on a person liable for payment of

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the tax.

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     (b) If:

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     1. A deed, instrument, writing, or other document grants,

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assigns, conveys, or otherwise transfers any interest in real

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property between an owner or owners of an artificial legal entity

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and that entity, or between two artificial legal entities if

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those entities are owned by the same person or persons;

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     2. There is a mere change in form of ownership without

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effecting any change in beneficial ownership interests; and

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     3. The only consideration given is an increase in the value

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of any ownership interests in the grantee entity or any other

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entity,

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in lieu of paying any tax due on that document the parties to the

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transfer may make an election on or before the date of the

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transfer on a form issued by the department to not make payment

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of the tax due on that document and instead pay the tax that

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becomes due upon a transfer of an ownership interest in the

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grantee artificial legal entity or pursuant to a subsequent

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document that transfers an interest in the real property,

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whichever occurs first. The form on which such election is made

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shall be attached to and recorded with the deed, instrument,

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writing, or other document that grants, assigns, conveys, or

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otherwise transfers any interest in the real property. If such

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election has been timely made, the tax shall be due only once

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upon the transfer of an ownership interest in the grantee

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artificial legal entity or a subsequent transfer of an interest

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in the real property, whichever occurs first. Upon the transfer

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of ownership interest in the artificial legal entity or a

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subsequent transfer of an interest in the real property, the

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amount of the consideration shall be the greater of the

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consideration as determined under paragraph (a) at the time of

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the transfer or the fair market value of the interest in the real

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property at the time of the transfer. However, this provision

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shall not apply if the transfer of an ownership interest in the

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artificial legal entity or subsequent transfer of an interest in

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the real property is a return of the interest in the real

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property from the artificial legal entity to the original owner

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or owners resulting in no change in the beneficial ownership

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interests previously held in the real property. All revenue

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received under the provisions of this paragraph shall be

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deposited into the Sadowski Affordable Housing Trust Fund.

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     Section 2.  This act shall take effect upon becoming a law

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and shall apply to transfers of property for which the first

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transfer to an artificial entity occurs after the effective date

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of this act.