(1) Signature Required: Tax is on “”Promise to Pay”” and each renewal thereof and to be “”note or obligation”” it must be signed by the maker or obligor to be taxable. (Lee v. Quincy State Bank, 127 Fla. 765, 173 So. 909 (1937))

Terms Used In Florida Regulations 12B-4.053

  • Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
  • Bail: Security given for the release of a criminal defendant or witness from legal custody (usually in the form of money) to secure his/her appearance on the day and time appointed.
  • Contract: A legal written agreement that becomes binding when signed.
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Deed: The legal instrument used to transfer title in real property from one person to another.
  • Donee: The recipient of a gift.
  • Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
  • Lien: A claim against real or personal property in satisfaction of a debt.
  • Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • Personal property: All property that is not real property.
  • Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
    (2) Purported Lease:
    (a) An instrument which purports to be a lease, whereby title to tangible personal property remains vested in the seller, until the total of the payment of rentals equals the value of the property leased at which time “”lessee”” becomes the unconditional owner of the property, is a “”mortgage”” and is subject to tax, even though payment of the rentals is not an unconditional obligation to pay money.
    (b) A lease of tangible personal property containing a written unconditional obligation to pay money is subject to tax.
    (3) Note Executed in Florida: A note mailed to a bank in another state and payable in that state is taxable where the note is made in Florida, the loan is used in Florida, and the loan is in all essential factors a Florida transaction. (Plymouth Citrus Growers Ass’n v. Lee, 157 Fla. 893, 27 So. 2d 415 (1946))
    (4) Executed to Governmental Agencies or Instrumentalities: Instruments made payable to United States, its agencies or instrumentalities (Choctawhatchee Electric Cooperative, Inc. v. Green, 132 So. 2d 556 (Fla. 1961)) or to the state, counties, municipalities or any political subdivision of the state are taxable to the nonexempt party unless the instrument is exempt by federal or state law. (1962 Op. Att’y. Gen. Fla. 062-150 (Nov. 8, 1962); 1963 Op. Att’y. Gen. Fla. 063-131 (Nov. 4, 1963); 1968 Op. Att’y. Gen. Fla. 068-10 (Jan. 19, 1968); 1970 Op. Att’y. Gen. Fla. 070-169 (Dec. 4, 1970); 1970 Op. Att’y. Gen. Fla. 070-171 (Dec. 8, 1970); 1971 Op. Att’y. Gen. Fla. 071-100 (May 12, 1971))
    (5) Right to Rescind: Lot purchase contracts in existence beyond a stated period of time without having been rescinded by purchaser as provided for in the terms of the contract, constitute “”written obligations to pay money”” subject to documentary stamp tax, but contracts rescinded by purchasers within the stated time period are not subject to tax. (Gulf American Land Corporation v. Green, 157 So. 2d 70 (Fla. 1963))
    (6) “”Add-On”” or Supplemental Agreement: A written obligation to pay money whereby the purchaser promises to pay the vendor a certain sum of money to cover the purchase price of itemized merchandise purchased from the vendor requires documentary stamp tax for the full amount of the purchase. When a supplemental agreement, either separate or as part of the original agreement is used for the purchase of additional merchandise and the supplemental agreement embodies the terms of the original agreement by reference or otherwise to cover the additional merchandise purchased, then this supplemental agreement must bear documentary stamp tax in an amount to cover the amount of the original agreement plus the amount of the supplemental agreement. (1940 Op. Att’y. Gen. Fla. 0-1021, (Dec. 16, 1940))
    (7) Certified Check: The certification of a check by a bank is subject to tax. The certification is equivalent to an acceptance. The bank upon certification becomes liable to the holder. (1931 Op. Att’y. Gen. Fla. 1931-32 Biennial Report, Page 831 (Sept. 24, 1931); 1931 Op. Att’y. Gen. Fla. 1931-32 Biennial Reports, Page 845 (Oct. 15, 1931))
    (8) Chattel Mortgage: A chattel mortgage or conditional bill of sale, which contains in the body of the contract or mortgage the promise to pay not evidenced by a separate note or writing shall bear the required documentary stamp tax. If there is a separate promissory note evidencing the indebtedness, and a recorded chattel mortgage which is security for such note, the tax is to be paid on the recorded document at the time of recordation and a notation of the stamps and the amount thereof made on the promissory note.
    (9) Document Signed in Another State; Payable in Florida: Where a promissory note is signed by its maker in another state and mailed to the payee in this state, after which it is examined, approved and accepted and a loan in the principal amount of the note is made to the maker, such note is subject to tax. (1956 Op. Att’y. Gen. Fla. 056-339 (Dec. 7, 1956); (1958 Op. Att’y. Gen. Fla. 058-106 (March 25, 1958); (1962 Op. Att’y. Gen. Fla. 062-11 (Jan. 18, 1962))
    (10) Credit Unions: “”Promise to Pay”” given to either state or federally chartered credit unions is subject to tax. (1956 Op. Att’y. Gen. Fla. 056-247 (Aug. 22, 1956))
Cross Reference – subsection 12B-4.054(23), F.A.C.
    (11) Demand Loans: Forms used by banks in making so-called “”demand loans”” which contain a written obligation to pay money are subject to the documentary stamp tax based upon the full amount of the demand loan, with a maximum tax due of $2,450. (1941 Op. Att’y. Gen. Fla. 041-677 (Dec. 5, 1941))
    (12) Minimum Tax: All “”promises to pay””, unless the document is wholly exempt, must bear the minimum tax even though the debt is less than $100. (State v. Cook, 108 Fla. 157, 146 So. 223 (1933))
    (13) Banks, Savings and Loan Associations: Notes or other written obligations to pay money executed by national or state banks and state or federal chartered savings and loan associations are subject to tax.
    (14) Religious or Non-Profit Church Corporation: “”Promise to pay”” executed by religious bodies or non-profit corporations is subject to tax. (1932 Op. Att’y. Gen. Fla. 1931-32 Biennial Report, Page 396 (Jan. 7, 1932))
    (15) Retain Title Contracts: Where under a contract the purchaser agrees to pay a certain price upon certain terms, the title to the property to remain in the seller until the contract price is paid in full, such contract constitutes an obligation to pay money and is taxable. (1933 Op. Att’y. Gen. Fla. 1933-34 Biennial Report, Page 48 (Aug. 22, 1933))
    (16) Bankers or Trade Acceptances: Bankers or trade acceptances when payable on a date subsequent to acceptance are written obligations for the payment of money from the date of such acceptance and are taxable. However, when payable on demand or presentation and presentation is made after acceptance, they are not written obligations to pay money and are not taxable. (1966 Op. Att’y. Gen. Fla. 066-18, (March 11, 1966))
Cross Reference – subsection 12B-4.054(20), F.A.C.
    (17) Annuity Agreements: An annuity agreement issued by a party to an individual in consideration of gifts or donations is taxable as a written obligation to pay money, and the tax is determined by the value of the annuity based upon the life expectancy of the donee. (1960 Op. Att’y. Gen. Fla. 060-131 (Aug. 9, 1960))
    (18) Vendor’s Lien: Where a deed of conveyance recites the retention of a vendor’s lien and contains a provision that the vendee agrees to the reservation of such lien and to pay the unpaid balance of the purchase price, tax is due based upon the unpaid balance. (1961 Op. Att’y. Gen. Fla. 061-8 (Jan. 23, 1961))
    (19) Assumption of Note and Mortgage: Person assuming a mortgage (Note or written obligation to pay money) effectively renews or modifies the original note or mortgage, and would not be exempt from tax under Florida Statutes § 201.09, because it includes a person other than the original obligor. Therefore, an assumption of any note and mortgage, whether incorporated in a conveyance which is accepted by the purchaser, or assumed in a separate document, is a taxable renewal under Florida Statutes § 201.08(1), and not exempt under Sections 201.09(1) and (2), F.S. When a grantee takes title to real property subject to mortgage, the grantee is not responsible to the holder of the promissory note for the payment of any portion of the amount due, and such mortgage is not subject to tax under Florida Statutes § 201.09
Cross Reference – subsections 12B-4.052(6) and (12), Fl. Admin. Code R. 12B-4.053(33)(g)
    (20) Revolving Charge Account Agreements: Purchases made under a revolving charge account agreement where sales slips made in connection with the agreement contain a written obligation to pay money are taxable under Florida Statutes § 201.08(2), except those activated with the use of a credit card, charge card, or debit card. (1971 Op. Att’y. Gen. Fla. 071-116 (May 24, 1971))
Cross Reference – subsection (11) of Fl. Admin. Code R. 12B-4.054
    (21) Wage Assignments: Assignments of salaries or wages are taxable.
    (22) Payment in Full After Execution of Document: A document which constitutes a written obligation to pay money is taxable upon its execution even though payment may be made immediately after execution regardless of the period of time the obligation may be outstanding.
    (23) Contracts which Convey an Interest in Realty: A contract which contains a written obligation to pay money and which conveys an interest in realty, such as a timber contract, mineral contract, etc., is taxable as a conveyance of an interest in realty under Florida Statutes § 201.02, and is also taxable as a written obligation to pay money under Florida Statutes § 201.08 (1971 Op. Att’y. Gen. Fla. 071-30 (Feb. 19, 1971))
    (24) Agreement or Contract for Deed: An agreement or contract for deed that meets the statutory definition of a “”mortgage”” is subject to tax when filed or recorded in the state based upon the indebtedness secured, regardless of whether the indebtedness is contingent. Agreements or contracts for the sale of land, which are not recorded and contain no written obligation to pay money similar in nature to promissory notes and non-negotiable notes, are not subject to tax as a written obligation to pay money. If the agreement for deed provides that the seller will look only to the land itself for payment of the balance of the purchase price, there is no written obligation to pay money in the contract and it is not subject to tax unless recorded.
    (25) “”Wrap-Around”” Notes: Documentary stamp tax is due upon the face amount of a note (with a maximum tax due of $2450), under which a maker obligates himself to pay a sum certain, even though the payee obligates himself to use such payments to pay off a prior note. (Department of Revenue v. McCoy Motel, Inc., 302 So. 2d 440 (Fla. 1st DCA 1974))
    (26) Acceptances: Acceptances are obligations to pay according to the tenor of the document and are taxable under Section 201.08(1)(a), F.S. (1931 Op. Att’y. Gen. Fla. 1931-32 Biennial Report, Page 831 (Sept. 24, 1931); 1931 Op. Att’y. Gen. Fla. 1931-32 Biennial Report, Page 845 (Oct. 15, 1931))
Cross Reference – subsections (7) and (16) of Fl. Admin. Code R. 12B-4.053
    (27) Assignment of Mortgage: An assignment of a mortgage by a lender (mortgagee or owner of the asset) to a new lender who has purchased the note and mortgage and becomes the holder of the note and mortgage is not taxable (State v. Sweat, 113 Fla. 797, 152 So. 432 (1934)). However, where the assignment of a mortgage is given as collateral security for a new loan, the assignment is taxable (mortgage) when recorded in this state.
Cross Reference – subsection 12B-4.054(5), F.A.C.
    (28) Note Executed and Delivered: All notes or written obligations to pay money delivered to the lender, such as master notes and notes drawn in connection with a line of credit, letter of credit, bail bond, or otherwise, executed in Florida or approved and accepted in Florida, are subject to Florida documentary stamp tax. Tax is due based on the face amount of the note, with a maximum tax due of $2,450, whether or not funds are advanced at time of delivery. If the note is secured by a recorded mortgage, tax shall be paid on the mortgage at time of recording and a notation made on the note that tax has been paid on the mortgage. The $2,450 tax limit placed on a note or other written obligation to pay money, executed in Florida or approved and accepted in Florida, does not apply to a mortgage, security agreement, or other lien filed or recorded in Florida. Renewals are also taxable unless exempted under Florida Statutes § 201.09
Cross Reference – subsection (2) of Rule 12B-4.051 and paragraph (12)(e) of Fl. Admin. Code R. 12B-4.052
    (29) Student Loans: All notes executed by students for loans that are guaranteed by the Federal Government or the state are taxable, unless federal regulations prohibit the assessment of such taxes against the borrower.
Cross Reference – subsection 12B-4.054(25), F.A.C.
    (30) Foreign Notes and International Banking Transactions:
    (a) Notes, drafts and bills of exchange executed for financing the purchase or transfer of real property located in Florida, or secured by a mortgage, deed of trust or other lien upon real property located in Florida, are subject to stamp tax.
Cross Reference – subsection 12B-4.054(27), F.A.C.
    (b) Notes executed by foreign entities for financing the purchase of personal property for use in Florida are taxable unless such property is identifiable as being directly and solely in connection with the production, preparation, storage or transportation of tangible personal property for export or import, and the lender is a banking organization defined in Florida Statutes § 199.023(9)
Cross Reference – subsection 12B-4.054(28), F.A.C.
    (31) Out-of-State Notes – Secured by Florida Mortgage: A mortgage recorded in this state encumbering Florida real or personal property, which is security for an out-of-state note is subject to tax as follows:
    (a) Indebtedness Secured: The tax is based upon the full amount of the indebtedness secured, whether the indebtedness is contingent or not, unless paragraphs (b) and (c) of this rule apply. See also Sections 201.08(5) and (7), F.S.
    (b) Secured by Multi-State Mortgage: When a note is made in another state and is secured by a multi-state mortgage recorded in Florida which describes and pledges the Florida property and the out-of-state property, tax is due on the mortgage when filed or recorded in Florida based upon the percentage of indebtedness which the value of the mortgaged property located in Florida bears to the total value of all the mortgaged property. However, when the mortgage limits recovery to less than the amount of the indebtedness secured, the tax is due on the amount to which recovery is limited. The mortgage is required to state the value of the property in Florida and the other state(s); and also the percentage of the Florida property in relation to the total property. When the documentary stamp tax due is based upon the amount to which recovery is limited on a mortgage, then the mortgage is not required to state the value of the property in Florida and the other state(s); nor is the mortgage required to state the percentage of the Florida property in relation to the total property.
COMPUTATION OF TAX:
Value of Florida property/Total value of all property / Indebtedness = Amount
Example:
Value of Florida property