Documentary Stamp Tax: Florida

Navigating Florida’s Documentary Stamp Taxes: A Complete Guide to Understanding Rates, Requirements, Exemptions, and Proper Filing Procedures

Florida, like many other U.S. states, has specific tax requirements and regulations when it comes to real estate transactions. Florida’s real estate transfer tax system is called tax stamps. These stamps serve as a means to collect taxes on documents or transactions that are deemed taxable by the state.

Here we offer a comprehensive overview of documentary stamp taxes in Florida for title insurance agencies, explaining when and how they are due, the applicable rates, exemptions, and the process of remitting them. It covers various documents subject to the tax, such as deeds, mortgages, and bonds, and outlines considerations for determining the taxable value. Additionally, the article offers insight into exemptions, penalties for late payment, and guidance for registering with the Florida Department of Revenue to report and pay these taxes.

Quick Reference:

When is it due?

At the time you are recording your documents.

How much is it? How is it calculated?

Deed Documentary Stamps - $7.00 per thousand of the purchase price.

Mortgage Documentary Stamps - $3.50 per thousand of the loan amount.

Mortgage Intangible Tax - .002 x the loan amount.

How do you remit it?

Most counties here will record electronically. The electronic recording service pays for the recording; then they take those fees from an account we have set up for that purpose. If the County does not record electronically, then we send a check along with the original documents that need to be recorded.

Are there exemptions?

Yes, it is best to follow the instructions of the seller and/or lender; then question the particular County/State entity if unsure. Some exemptions though . . . CUs – exempt from Intangible Tax on their mortgage / Some State/County entities on the deed out and the mortgage.

What Are Florida Tax Stamps?

Florida tax stamps, also known as documentary stamps or doc stamps, are essentially a form of excise tax imposed on the transfer of certain documents. These documents generally include deeds, notes, bonds, mortgages, liens, and other written instruments that affect legal transactions, particularly in the real estate industry.

The name "stamp" comes from the physical or digital stamp placed on the document, signifying that the required tax has been paid. Originally, stamps were actual adhesive stamps that were affixed to documents. Today, they are often processed digitally, but the term “tax stamp” still applies.

Florida Doc Stamps: What Are They And Who Pays Them from Title Junction, LLC.

Purpose of Florida Tax Stamps

The revenue generated from these documentary stamp taxes goes into Florida’s general revenue fund, which is used for a variety of public services, including education, healthcare, transportation infrastructure, and environmental conservation.

In the context of real estate, tax stamps provide a way for the state to ensure that proper taxes are collected on significant financial transactions, making sure that real estate buyers and sellers pay their fair share toward public services. The tax also creates a paper trail that assists in keeping records for property transfers and financial transactions, which helps to clarify ownership and responsibilities.

How Are Florida Tax Stamps Paid?

The process for paying documentary stamp taxes in Florida can vary depending on the type of transaction:

• For real estate sales, the tax is usually paid at closing through the closing agent or title company. The title company will calculate the amount due and include it in the settlement statement.

• For mortgages and promissory notes, the lender typically ensures that the documentary stamp tax is paid when the loan is executed. The borrower may see the tax listed as part of their closing costs.

• For other documents, such as notes or bonds unrelated to real estate, the person executing the document may be responsible for paying the tax. Payment can be made through the Florida Department of Revenue.

Types of Florida Tax Stamps

There are two primary types of Florida tax stamps that are applied depending on the transaction.

Documents subject to the tax include:

• Deeds

• Bonds

• Notes and other written obligations to pay money

• Mortgages, liens, and other evidence of indebtedness