(1) Tax on Governmental Leasehold Estates – All leases of government-owned property are subject to an annual tax if rental payments are due as consideration for the lease, unless the lessee serves or performs a governmental, municipal, or public purpose or function as defined in Florida Statutes § 196.012

Terms Used In Florida Regulations 12C-2.004

  • Deed: The legal instrument used to transfer title in real property from one person to another.
  • 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)(a) A nonrecurring tax is imposed at the rate of $2.00 per thousand dollars (2 mills) of the value of a note or other obligation for payment of money that is secured by a mortgage, deed of trust, or other lien on Florida real property.
    (b) The following are examples of property subject to the nonrecurring tax:
    1. Agreements or contracts for deed.
    2. Agreements not to encumber real property if the agreement attaches as a lien on the real property.
    3. Future Advances – to the extent secured by a lien on Florida real property.
    4. Line of Credit – to the extent secured by a lien on Florida real property, as described in Florida Statutes § 199.143
    (c) Example: Note and mortgage given to secure loan with a principal amount of $1,000,000.
    Tax computation:

Principal
$1,000,000.00

Tax rate
x .002
____________

Tax due
$2,000.00
    (3)(a) Where a note, bond or other obligation for the payment of money is secured by realty located both inside and outside of the state and by personal property located both inside and outside of the state, the nonrecurring tax is required to be apportioned based on each type of property’s relative percentage of the principal amount of debt at the time the obligation is created.
    (b) Example: Note and mortgage given to secure a loan of $1,000,000. The mortgage includes real property located in and out of Florida as well as personal property located in and out of Florida.
Security
Value
Percentage
Tax
Value of Florida Real Property
$250,000.00
25%
$500.00(*)
Value of NonFlorida Real Property
250,000.00
25%
– 0 –
Total Value of All Real Property
500,000.00
50%
N/A
Value of Florida Personal Property
250,000.00
25%
0(**)
Value of NonFlorida Personal Property
250,000.00
25%
0(**)
Total Value of All Personal Property
500,000.00
50%
0(**)
Total Collateral
$1,000,000.00
100%

(*) Nonrecurring 2 mill tax
(**) There is no tax on personal property.
    (4)(a) Where the value of real property pledged to secure an obligation is less than the balance of the obligation, the amount of the obligation secured by the value of Florida real property is subject to the nonrecurring tax.
    (b) Example:
Principal Amount of Loan
$1,000,000.00
Less Value of Florida Real Property
Amount subject to nonrecurring tax
    -500,000.00
$ 500,000.00
Rulemaking Authority 199.202, 213.06(1) FS. Law Implemented 196.199(2)(a), (b), 199.133, 199.135 (2005), 199.143, 199.145, 199.155, 199.183 FS. History-New 4-17-72, Amended 12-20-73, 5-8-79, Formerly 12C-2.04, Amended 11-21-91, 5-18-93, 10-9-01, 1-28-08, 1-17-13.

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