Buyers and sellers of real estate in Florida have some familiarity with the documentary stamp tax as it invariably shows up on their settlement statements as a closing cost. Hank transfers a Florida beach house valued at $1 million with a $750,000 mortgage balance to a LLC that is 100% owned by him. Since the grantor is paying the income taxes on property that belongs to others for estate tax purposes, the effect is to allow a greater shift of assets to the next generation free of estate tax. But there isn’t a limit on the documentary stamp tax due for mortgages or liens filed or recorded in Florida. The documentary stamp tax is broad and could apply to any transfer of an interest in property. For example, a wife may want to add her new husband’s name to her home after they are married. Documentary Stamp Tax Rate History; Documentary Stamp Tax Rate History. Liens.For the first category (notes and other written obligations to pay), Florida law caps the total documentary stamp tax at $2,450.00. Florida Documentary Stamp Tax on documents began in November 1931. As with the documentary stamps on the deed, the party responsible for the payment of the tax is spelled out in the purchase agreement but the custom as to who pays which taxes seldom diverges from what we have described. Documentary Stamp Tax, at a rate of .75 per $500, must be paid on the purchase price of property or minerals at the time of recording. As described above, the documentary stamp tax will be an amount equal to 35 cents per $100.00 of the amount financed unless the loan amount is $700,000.00 or more, in which instance the maximum amount of tax payable is capped at $2,450.00. 1. By contrast, New York has the lowest doc fees, with an average of $75. The documentary stamp tax on a $150,000 home would equal $1,050.00. Other types of properties in Miami Dade County are charged slightly different rates of documentary stamp tax. Then there are the taxes. Certain renewal notes; 3. This tax applies to true home sales, not to simple changes in the mere form of ownership like transfers to a wholly-owned LLC. cities on the transfer of the title of real property from one person (or entity) to another within the jurisdiction Florida has the highest documentation fees in the United States, with an average doc fee of $670. of Revenue - Documentary Stamp Tax. Other states with unusually high doc fees include Alabama, Georgia and Tennessee. Only documentary stamp tax will be due since there is no Florida real property collateral. In Florida, no documentary stamp tax is owed on this type of transfer if (a) no money or other consideration is given in exchange for the property and (b) there is no mortgage on the property. This fee is charged by the recording offices in most counties. IDGTs are designed to exclude assets from the grantor’s estate for estate tax purposes but require the grantor to pay income tax on the assets. How Much Are Transfer Taxes in Florida? (1944 Op. However, the State of Florida imposes taxes on deeds, including quit claim deeds and deeds in lieu of foreclosure. Each deed filed must meet the requirements that are outlined in Section 695.26, Florida Statute. No legal services are provided on this site. Historical Documentary Stamp Tax Rates . The Department of Revenue is always keen to squash anyone wishing to trifle with their tax revenues so there is the possibility (however remote) that they would contest the stated value of the personal property and try to charge the $700 in saved tax plus any penalties and interest. These purchasers recorded the trust deed and paid doc stamp taxes on the money paid (70 cents per $100). Other states with unusually high doc fees include Alabama, Georgia and Tennessee. Date Increased: Rate: Nov. 1931 – June 1957 ; 10 cents per $100 : July 1957 – June 1963 ; 20 cents per $100 . In Florida, this fee is called the “Florida documentary stamp tax.”. Those who are tempted to skimp on paying the intangible tax and not record the mortgage should realize that lenders routinely oppose such plans because it prevents the obligation contained in the note from being collateralized by the underlying property. Florida Statutes. Copyright © 2020 DeedClaim LLC. Hank transfers a Florida beach house valued at $1 million with a $750,000 mortgage balance to a LLC that is 100% owned by him. The rate is $0.35 per $100 (or portion thereof) on documents that are executed or delivered in Florida. However, because the seller is required to provide marketable title to the property, the seller usually pays these taxes. There are not any additional transfer taxes for cash out, just use the new loan amount to calculate the doc stamps and intangible tax. First class stamps. The rate is equal to 70 cents per $100 of the deed's consideration. Florida Statutes. But if the document is recorded after the 20th day of the month following the date that the document is delivered, it must be paid directly to the Florida Department of Revenue. The Florida legislature decided that they needed to add an extra tax on the mortgage that secures the promissory note being given by the buyer to his lender. The actual tax must be paid to the clerk of the circuit court or similar authority in the county in which the real property itself is located before the deed can be recorded. Try out our calculator for documentary stamps. July 1963 – Sept. 1979 : 30 cents per $100 . Notes and other written obligations to pay. 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