CS/CS/HB 55

1
A bill to be entitled
2An act relating to the excise tax on documents; amending
3s. 201.02, F.S.; imposing the tax on the consideration for
4short sale transfers of real property; excluding certain
5unpaid indebtedness from such consideration; defining the
6term "short sale"; authorizing the Department of Revenue
7to adopt rules establishing arm's length criteria for
8short sale purposes; providing an effective date.
9
10Be It Enacted by the Legislature of the State of Florida:
11
12     Section 1.  Subsection (11) is added to section 201.02,
13Florida Statutes, to read:
14     201.02  Tax on deeds and other instruments relating to real
15property or interests in real property.--
16     (11)  The tax imposed by this section applies to any deed,
17instrument, or writing that transfers any interest in real
18property pursuant to a short sale. The taxable consideration for
19a short sale transfer does not include unpaid indebtedness that
20is forgiven or released by a mortgagee holding a mortgage on the
21grantor's interest in the property. For purposes of this
22subsection, the term "short sale" means a purchase and sale of
23real property in which all of the following apply:
24     (a)  The grantor's interest is encumbered by a mortgage or
25mortgages securing indebtedness in an aggregate amount greater
26than the purchase price paid by the grantee.
27     (b)  A mortgagee releases the real property from its
28mortgage in exchange for a partial payment of less than the
29total of the outstanding mortgage indebtedness owed to the
30releasing mortgagee.
31     (c)  The releasing mortgagee does not receive, directly or
32indirectly, any interest in the property transferred.
33     (d)  The releasing mortgagee, grantor, and grantee are
34dealing with each other at arm's length.
35     Section 2.  The Department of Revenue may adopt rules
36establishing criteria governing whether parties to a short sale
37are dealing with each other at arm's length.
38     Section 3.  This act shall take effect July 1, 2009.


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