Florida Senate - 2009 COMMITTEE AMENDMENT Bill No. SB 728 Barcode 345254 LEGISLATIVE ACTION Senate . House Comm: FAV . 02/18/2009 . . . . ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— The Committee on Judiciary (Baker) recommended the following: 1 Senate Amendment (with title amendment) 2 3 Delete lines 9 - 35 4 and insert: 5 Section 1. Section 201.02, Florida Statutes, is amended to 6 read: 7 201.02 Tax on deeds and other instruments relating to real 8 property or interests in real property.— 9 (1) On deeds, instruments, or writings whereby any lands, 10 tenements, or other real property, or any interest therein, 11 shall be granted, assigned, transferred, or otherwise conveyed 12 to, or vested in, the purchaser or any other person by his or 13 her direction, on each $100 of the consideration therefor the 14 tax shall be 70 cents. When the full amount of the consideration 15 for the execution, assignment, transfer, or conveyance is not 16 shown in the face of such deed, instrument, document, or 17 writing, the tax shall be at the rate of 70 cents for each $100 18 or fractional part thereof of the consideration therefor. For 19 purposes of this section, consideration includes, but is not 20 limited to, the money paid or agreed to be paid; the discharge 21 of an obligation; and the amount of any mortgage, purchase money 22 mortgage lien, or other encumbrance, whether or not the 23 underlying indebtedness is assumed. If the consideration paid or 24 given in exchange for real property or any interest therein 25 includes property other than money, it is presumed that the 26 consideration is equal to the fair market value of the real 27 property or interest therein. 28 (2) The tax imposed by subsection (1) shall also be payable 29 upon documents by which the right is granted to a tenant 30 stockholder to occupy an apartment in a building owned by a 31 cooperative apartment corporation or in a dwelling on real 32 property owned by any other form of cooperative association as 33 defined in s. 719.103. 34 (3) The tax imposed by subsection (2) shall be paid by the 35 purchaser, and the document recorded in the office of the clerk 36 of the circuit court as evidence of ownership. 37 (4) The tax imposed by subsection (1) shall also be payable 38 upon documents which convey or transfer, pursuant to s. 689.071, 39 any beneficial interest in lands, tenements, or other real 40 property, or any interest therein, even though such interest may 41 be designated as personal property, notwithstanding the 42 provisions of s. 689.071(6). The tax shall be paid upon 43 execution of any such document. 44 (5) All conveyances of real property to a partner from a 45 partnership which property was conveyed to the partnership after 46 July 1, 1986, are taxable if: 47 (a) The partner receiving the real property from the 48 partnership is a partner other than the partner who conveyed the 49 real property to the partnership; or 50 (b) The partner receiving the real property from the 51 partnership is the partner who conveyed the real property to the 52 partnership and there is a mortgage debt or other debt secured 53 by such real property for which the partner was not personally 54 liable prior to conveying the real property to the partnership. 55 For purposes of this subsection, the value of the consideration 56 paid for the conveyance of the real property to the partner from 57 the partnership includes, but is not limited to, the amount of 58 any outstanding mortgage debt or other debt which the partner 59 pays or agrees to pay in exchange for the real property, 60 regardless of whether the partner was personally liable for the 61 debts of the partnership prior to the conveyance to the partner 62 from the partnership. 63 (6) Taxes imposed by this section shall not apply to any 64 assignment, transfer, or other disposition, or any document, 65 which arises out of a transfer of real property from a nonprofit 66 organization to the Board of Trustees of the Internal 67 Improvement Trust Fund, to any state agency, to any water 68 management district, or to any local government. For purposes of 69 this subsection, “nonprofit organization” means an organization 70 whose purpose is the preservation of natural resources and which 71 is exempt from federal income tax under s. 501(c)(3) of the 72 Internal Revenue Code. The Department of Revenue shall provide a 73 form, or a place on an existing form, for the nonprofit 74 organization to indicate its exempt status. 75 (7) Taxes imposed by this section do not apply to a deed, 76 transfer, or conveyance between spouses or former spouses 77 pursuant to an action for dissolution of their marriage wherein 78 the real property is or was their marital home or an interest 79 therein. Taxes paid pursuant to this section shall be refunded 80 in those cases in which a deed, transfer, or conveyance occurred 81 1 year before a dissolution of marriage. This subsection applies 82 in spite of any consideration as defined in subsection (1). This 83 subsection does not apply to a deed, transfer, or conveyance 84 executed before July 1, 1997. 85 (8) Taxes imposed by this section do not apply to a 86 contract to sell the residence of an employee relocating at his 87 or her employer's direction or to documents related to the 88 contract, which contract is between the employee and the 89 employer or between the employee and a person in the business of 90 providing employee relocation services. In the case of such 91 transactions, taxes apply only to the transfer of the real 92 property comprising the residence by deed that vests legal title 93 in a named grantee. 94 (9) A certificate of title issued by the clerk of court 95 under s. 45.031(5) in a judicial sale of real property under an 96 order or final judgment issued pursuant to a foreclosure 97 proceeding is subject to the tax imposed by subsection (1). 98 However, the amount of the tax shall be computed based solely on 99 the amount of the highest and best bid received for the property 100 at the foreclosure sale. This subsection is intended to clarify 101 existing law and shall be applied retroactively. 102 (10)(a) In recognition of the special escrow requirements 103 that apply to sales of timeshare interests in timeshare plans 104 pursuant to s. 721.08, tax on deeds or other instruments 105 conveying any interest in Florida real property which are 106 executed in conjunction with the sale by a developer of a 107 timeshare interest in a timeshare plan is due and payable on the 108 earlier of the date on which: 109 1. The deed or other instrument conveying the interest in 110 Florida real property is recorded; or 111 2. All of the conditions precedent to the release of the 112 purchaser's escrowed funds or other property pursuant to s. 113 721.08(2)(c) have been met, regardless of whether the developer 114 has posted an alternative assurance. Tax due pursuant to this 115 subparagraph is due and payable on or before the 20th day of the 116 month following the month in which these conditions were met. 117 (b)1. If tax has been paid to the department pursuant to 118 subparagraph (a)2., and the deed or other instrument conveying 119 the interest in Florida real property with respect to which the 120 tax was paid is subsequently recorded, a notation reflecting the 121 prior payment of the tax must be made upon the deed or other 122 instrument conveying the interest in Florida real property. 123 2. Notwithstanding paragraph (a), if funds are designated 124 on a closing statement as tax collected from the purchaser, but 125 a default or cancellation occurs pursuant to s. 721.08(2)(a) or 126 (b) and no deed or other instrument conveying interest in 127 Florida real property has been recorded or delivered to the 128 purchaser, the tax must be paid to the department on or before 129 the 20th day of the month following the month in which the funds 130 are available for release from escrow unless the funds have been 131 refunded to the purchaser. 132 (c) The department may adopt rules to administer the method 133 for reporting tax due under this subsection. 134 (11) The documentary stamp tax imposed by this section 135 applies to a deed, instrument, or writing that transfers any 136 interest in real property pursuant to a short sale, as defined 137 in this subsection. The taxable consideration for a short sale 138 transfer does not include unpaid indebtedness that is forgiven 139 or released by a mortgagee holding a mortgage on the grantor’s 140 interest in the property. A short sale is a purchase and sale of 141 real property in which: 142 (a) The grantor’s interest in the real property is 143 encumbered by a mortgage or mortgages securing indebtedness in 144 an aggregate amount greater than the purchase price paid by the 145 grantee; 146 (b) A mortgagee releases the real property from its 147 mortgage in exchange for a partial payment of less than all of 148 the outstanding mortgage indebtedness owing to the releasing 149 mortgagee; 150 (c) Neither the releasing mortgagee nor any person related 151 to the releasing mortgagee receives any interest in the property 152 transferred; and 153 (d) The releasing mortgagee is not controlled by or related 154 to the grantor or the grantee, and the grantor and the grantee 155 are not controlled by or related to each other. 156 157 ================= T I T L E A M E N D M E N T ================ 158 And the title is amended as follows: 159 Delete lines 3 - 5 160 and insert: 161 amending s. 201.02, F.S.; imposing the tax on deeds, 162 instruments, and other writings on the consideration for a 163 transfer of real property pursuant to a short sale; providing 164 that the consideration subject to the tax does not include 165 unpaid indebtedness that is forgiven by a mortgagee; defining 166 the term “short sale”; providing an effective date.