Florida Senate - 2009 SB 1510
By Senator Lawson
6-00832-09 20091510__
1 A bill to be entitled
2 An act relating to the excise tax on documents;
3 amending s. 201.02, F.S.; permitting an election to
4 forego the payment of the tax on certain deeds,
5 instruments, and documents for transfers of real
6 property which change the form of ownership of real
7 property without effecting a change in the beneficial
8 ownership interest; requiring the election to be made
9 on forms issued by the Department of Revenue and
10 recorded in the official records; providing an
11 effective date.
12
13 Be It Enacted by the Legislature of the State of Florida:
14
15 Section 1. Section 201.02, Florida Statutes, is amended to
16 read:
17 201.02 Tax on deeds, and other instruments, or documents
18 relating to real property or interests in real property.—
19 (1)(a) On deeds, instruments, or documents in which
20 writings whereby any lands, tenements, or other real property,
21 or any interest therein, is shall be granted, assigned,
22 transferred, or otherwise conveyed to, or vested in, the
23 purchaser or any other person by his or her direction, the tax
24 on each $100 of the consideration therefor the tax shall be 70
25 cents except as otherwise provided in this subsection. When the
26 full amount of the consideration for the execution, assignment,
27 transfer, or conveyance is not shown in the face of such deed,
28 instrument, document, or writing, the tax shall be at the rate
29 of 70 cents for each $100, or fractional part thereof, of the
30 consideration therefor except as otherwise provided in this
31 subsection. For purposes of this section, consideration
32 includes, but is not limited to, the money paid or agreed to be
33 paid; the discharge of an obligation; and the amount of any
34 mortgage, purchase money mortgage lien, or other encumbrance,
35 whether or not the underlying indebtedness is assumed; and any
36 increase in the value of any ownership interest in a grantee
37 entity or other entity. If the consideration paid or given in
38 exchange for real property or any interest therein includes
39 property other than money, it is presumed that a purchaser
40 exists and that the consideration is equal to the fair market
41 value of the real property or interest therein.
42 (b)1. The parties to a grant, assignment, transfer, or
43 conveyance of an interest in real property may elect to forego
44 payment of the tax due under paragraph (a) if:
45 a. The grant, assignment, transfer, or conveyance results
46 in a change in the form of ownership without effecting a change
47 in a beneficial ownership interest; and
48 b. The only consideration given is an increase in the value
49 of any ownership interest in the grantee entity or any other
50 entity.
51 2. If the election is made under this paragraph, the tax
52 under paragraph (a) shall be due on the full market value of the
53 real property upon the next change in an ownership interest in
54 the real property. However, the tax is not due upon a change in
55 an ownership interest which returns the identical interest in
56 the real property to the original grantor or grantors.
57 3. The election to forego payment of the tax must be made
58 on or before the date of the grant, assignment, transfer, or
59 conveyance on a form issued by the department. The form must be
60 attached to and recorded with the deed, instrument, or document.
61 (2) The tax imposed by subsection (1) shall also be payable
62 upon documents by which the right is granted to a tenant
63 stockholder to occupy an apartment in a building owned by a
64 cooperative apartment corporation or in a dwelling on real
65 property owned by any other form of cooperative association as
66 defined in s. 719.103.
67 (3) The tax imposed by subsection (2) shall be paid by the
68 purchaser, and the document recorded in the office of the clerk
69 of the circuit court as evidence of ownership.
70 (4) The tax imposed by subsection (1) shall also be payable
71 upon documents which convey or transfer, pursuant to s. 689.071,
72 any beneficial interest in lands, tenements, or other real
73 property, or any interest therein, even though such interest may
74 be designated as personal property, notwithstanding the
75 provisions of s. 689.071(6). The tax shall be paid upon
76 execution of any such document.
77 (5) All conveyances of real property to a partner from a
78 partnership which property was conveyed to the partnership after
79 July 1, 1986, are taxable if:
80 (a) The partner receiving the real property from the
81 partnership is a partner other than the partner who conveyed the
82 real property to the partnership; or
83 (b) The partner receiving the real property from the
84 partnership is the partner who conveyed the real property to the
85 partnership and there is a mortgage debt or other debt secured
86 by such real property for which the partner was not personally
87 liable prior to conveying the real property to the partnership.
88 For purposes of this subsection, the value of the consideration
89 paid for the conveyance of the real property to the partner from
90 the partnership includes, but is not limited to, the amount of
91 any outstanding mortgage debt or other debt which the partner
92 pays or agrees to pay in exchange for the real property,
93 regardless of whether the partner was personally liable for the
94 debts of the partnership prior to the conveyance to the partner
95 from the partnership.
96 (6) Taxes imposed by this section shall not apply to any
97 assignment, transfer, or other disposition, or any document,
98 which arises out of a transfer of real property from a nonprofit
99 organization to the Board of Trustees of the Internal
100 Improvement Trust Fund, to any state agency, to any water
101 management district, or to any local government. For purposes of
102 this subsection, “nonprofit organization” means an organization
103 whose purpose is the preservation of natural resources and which
104 is exempt from federal income tax under s. 501(c)(3) of the
105 Internal Revenue Code. The Department of Revenue shall provide a
106 form, or a place on an existing form, for the nonprofit
107 organization to indicate its exempt status.
108 (7) Taxes imposed by this section do not apply to a deed,
109 transfer, or conveyance between spouses or former spouses
110 pursuant to an action for dissolution of their marriage wherein
111 the real property is or was their marital home or an interest
112 therein. Taxes paid pursuant to this section shall be refunded
113 in those cases in which a deed, transfer, or conveyance occurred
114 1 year before a dissolution of marriage. This subsection applies
115 in spite of any consideration as defined in subsection (1). This
116 subsection does not apply to a deed, transfer, or conveyance
117 executed before July 1, 1997.
118 (8) Taxes imposed by this section do not apply to a
119 contract to sell the residence of an employee relocating at his
120 or her employer's direction or to documents related to the
121 contract, which contract is between the employee and the
122 employer or between the employee and a person in the business of
123 providing employee relocation services. In the case of such
124 transactions, taxes apply only to the transfer of the real
125 property comprising the residence by deed that vests legal title
126 in a named grantee.
127 (9) A certificate of title issued by the clerk of court
128 under s. 45.031(5) in a judicial sale of real property under an
129 order or final judgment issued pursuant to a foreclosure
130 proceeding is subject to the tax imposed by subsection (1).
131 However, the amount of the tax shall be computed based solely on
132 the amount of the highest and best bid received for the property
133 at the foreclosure sale. This subsection is intended to clarify
134 existing law and shall be applied retroactively.
135 (10)(a) In recognition of the special escrow requirements
136 that apply to sales of timeshare interests in timeshare plans
137 pursuant to s. 721.08, tax on deeds or other instruments
138 conveying any interest in Florida real property which are
139 executed in conjunction with the sale by a developer of a
140 timeshare interest in a timeshare plan is due and payable on the
141 earlier of the date on which:
142 1. The deed or other instrument conveying the interest in
143 Florida real property is recorded; or
144 2. All of the conditions precedent to the release of the
145 purchaser's escrowed funds or other property pursuant to s.
146 721.08(2)(c) have been met, regardless of whether the developer
147 has posted an alternative assurance. Tax due pursuant to this
148 subparagraph is due and payable on or before the 20th day of the
149 month following the month in which these conditions were met.
150 (b)1. If tax has been paid to the department pursuant to
151 subparagraph (a)2., and the deed or other instrument conveying
152 the interest in Florida real property with respect to which the
153 tax was paid is subsequently recorded, a notation reflecting the
154 prior payment of the tax must be made upon the deed or other
155 instrument conveying the interest in Florida real property.
156 2. Notwithstanding paragraph (a), if funds are designated
157 on a closing statement as tax collected from the purchaser, but
158 a default or cancellation occurs pursuant to s. 721.08(2)(a) or
159 (b) and no deed or other instrument conveying interest in
160 Florida real property has been recorded or delivered to the
161 purchaser, the tax must be paid to the department on or before
162 the 20th day of the month following the month in which the funds
163 are available for release from escrow unless the funds have been
164 refunded to the purchaser.
165 (c) The department may adopt rules to administer the method
166 for reporting tax due under this subsection.
167 Section 2. This act shall take effect upon becoming a law.