Florida Senate - 2009 CS for SB 2430
By the Committee on Judiciary; and Senator Lawson
590-03466A-09 20092430c1
1 A bill to be entitled
2 An act relating to the excise tax on documents;
3 amending s. 210.02, F.S.; revising criteria
4 determining liability for payment of the tax;
5 providing requirements and methods for making an
6 election regarding payment of tax under specified
7 circumstances; providing requirements; providing for
8 an application; providing an effective date.
9
10 Be It Enacted by the Legislature of the State of Florida:
11
12 Section 1. Subsection (1) of section 201.02, Florida
13 Statutes, is amended to read:
14 201.02 Tax on deeds and other instruments relating to real
15 property or interests in real property.—
16 (1)(a) On deeds, instruments, documents, or writings
17 whereby any lands, tenements, or other real property, or any
18 interest therein, shall be granted, assigned, transferred, or
19 otherwise conveyed to, or vested in, the purchaser or any other
20 person by his or her direction, on each $100 of the
21 consideration therefor the tax shall be 70 cents except as
22 otherwise provided herein. When the full amount of the
23 consideration for the execution, assignment, transfer, or
24 conveyance is not shown in the face of such deed, instrument,
25 document, or writing, the tax shall be at the rate of 70 cents
26 for each $100 or fractional part thereof of the consideration
27 therefor except as otherwise provided herein. For purposes of
28 this section, consideration includes, but is not limited to, the
29 money paid or agreed to be paid; the discharge of an obligation;
30 and the amount of any mortgage, purchase money mortgage lien, or
31 other encumbrance, whether or not the underlying indebtedness is
32 assumed; and any increase in the value of any ownership interest
33 in a grantee entity or any other entity. If the consideration
34 paid or given in exchange for real property or any interest
35 therein includes property other than money, it is presumed that
36 there is a purchaser and that the consideration is equal to the
37 fair market value of the real property or interest therein.
38 (b) If:
39 1. A deed, instrument, document, or writing grants,
40 assigns, transfers, or conveys, any interest in real property;
41 2. There is a mere change in form of ownership without
42 effecting any change in any beneficial ownership interests; and
43 3. The only consideration given is an increase in the value
44 of any ownership interests in the grantee entity or any other
45 entity,
46
47 in lieu of paying the tax due on such deed, instrument, document
48 or writing, the parties to the grant, assignment, transfer, or
49 conveyance may make an election, on or before the date of the
50 grant, assignment, transfer, or conveyance, on a form issued by
51 the department, to not make payment of the tax due on such deed,
52 instrument, document or writing and instead to pay tax on the
53 fair market value of the real property upon the subsequent
54 change in any ownership interest in the real property, or the
55 subsequent transfer of any interest in the real property. The
56 form on which such election is made shall be attached to and
57 recorded with the deed, instrument, document, or writing that
58 grants, assigns, conveys, or otherwise transfers any interest in
59 the real property. However, when an election has been made, no
60 tax shall apply to the subsequent transfer of the ownership
61 interest in the legal entity, or the subsequent transfer of an
62 interest in the real property, when the subsequent transfer is
63 limited to a return of the identical interest in the real
64 property by the grantee legal entity to the identical grantor or
65 grantors resulting in no change in the beneficial ownership
66 interests originally held in the real property.
67 Section 2. This act shall take effect upon becoming a law,
68 and applies to transfers of property for which the first
69 transfer to an artificial entity occurs on or after that date.