| 1 | A bill to be entitled |
| 2 | An act relating to the excise tax on documents; amending |
| 3 | s. 201.02, F.S.; revising criteria determining liability |
| 4 | for payment of the tax; providing an alternative |
| 5 | methodology for payment of the tax under certain |
| 6 | circumstances; providing requirements and procedures; |
| 7 | providing application; providing an effective date. |
| 8 |
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| 9 | Be It Enacted by the Legislature of the State of Florida: |
| 10 |
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| 11 | Section 1. Subsection (1) of section 201.02, Florida |
| 12 | Statutes, is amended to read: |
| 13 | 201.02 Tax on deeds and other instruments relating to real |
| 14 | property or interests in real property.-- |
| 15 | (1)(a) Except as otherwise expressly exempted by this |
| 16 | chapter, all deeds, instruments, writings, or other documents |
| 17 | that transfer an interest in real property shall be subject to |
| 18 | the tax imposed by this section. On deeds, instruments, or |
| 19 | writings whereby any lands, tenements, or other real property, |
| 20 | or any interest therein, shall be granted, assigned, |
| 21 | transferred, or otherwise conveyed to, or vested in, the |
| 22 | purchaser or any other person by his or her direction, on each |
| 23 | $100 of the consideration therefor the tax shall be 70 cents. |
| 24 | When the full amount of the consideration for the execution, |
| 25 | assignment, transfer, or conveyance is not shown in the face of |
| 26 | such deed, instrument, document, or writing, the tax shall be at |
| 27 | the rate of 70 cents for each $100 or fractional part thereof of |
| 28 | the consideration therefor. For purposes of this section, |
| 29 | consideration includes, but is not limited to, the money paid or |
| 30 | agreed to be paid; the discharge of an obligation; and the |
| 31 | amount of any mortgage, purchase money mortgage lien, or other |
| 32 | encumbrance, whether or not the underlying indebtedness is |
| 33 | assumed; and any increase in the value of any ownership interest |
| 34 | in a grantee entity or any other entity. If the consideration |
| 35 | paid or given in exchange for real property or any interest |
| 36 | therein includes property other than money or is not |
| 37 | determinable at the time of transfer, it is presumed that the |
| 38 | consideration is equal to the fair market value of the real |
| 39 | property or interest therein and the burden of proving the |
| 40 | contrary shall be on a person liable for payment of the tax. |
| 41 | (b) If: |
| 42 | 1. A deed, instrument, writing, or other document grants, |
| 43 | assigns, conveys, or otherwise transfers any interest in real |
| 44 | property between an owner or owners of an artificial legal |
| 45 | entity and that entity, or between two artificial legal entities |
| 46 | if those entities are owned by the same person or persons; |
| 47 | 2. There is a mere change in form of ownership without |
| 48 | effecting any change in beneficial ownership interests; and |
| 49 | 3. The only consideration given is an increase in the |
| 50 | value of any ownership interests in the grantee entity or any |
| 51 | other entity, |
| 52 | |
| 53 | in lieu of paying any tax due on that document the parties to |
| 54 | the transfer may make an election on or before the date of the |
| 55 | transfer on a form issued by the department to not make payment |
| 56 | of the tax due on that document and instead pay the tax that |
| 57 | becomes due upon a transfer of an ownership interest in the |
| 58 | grantee artificial legal entity or pursuant to a subsequent |
| 59 | document that transfers an interest in the real property, |
| 60 | whichever occurs first. The form on which such election is made |
| 61 | shall be attached to and recorded with the deed, instrument, |
| 62 | writing, or other document that grants, assigns, conveys, or |
| 63 | otherwise transfers any interest in the real property. If such |
| 64 | election has been timely made, the tax shall be due only once |
| 65 | upon the transfer of an ownership interest in the grantee |
| 66 | artificial legal entity or a subsequent transfer of an interest |
| 67 | in the real property, whichever occurs first. Upon the transfer |
| 68 | of ownership interest in the artificial legal entity or a |
| 69 | subsequent transfer of an interest in the real property, the |
| 70 | amount of the consideration shall be the greater of the |
| 71 | consideration as determined under paragraph (a) at the time of |
| 72 | the transfer or the fair market value of the interest in the |
| 73 | real property at the time of the transfer. However, this |
| 74 | provision shall not apply if the transfer of an ownership |
| 75 | interest in the artificial legal entity or subsequent transfer |
| 76 | of an interest in the real property is a return of the interest |
| 77 | in the real property from the artificial legal entity to the |
| 78 | original owner or owners resulting in no change in the |
| 79 | beneficial ownership interests previously held in the real |
| 80 | property. |
| 81 | Section 2. This act shall take effect upon becoming a law |
| 82 | and shall apply to transfers of property for which the first |
| 83 | transfer to an artificial entity occurs after the effective date |
| 84 | of this act. |