Florida Administrative Code › 12 - DEPARTMENT OF REVENUE › 12B - Miscellaneous Tax › Chapter 12B-4 - DOCUMENTARY STAMP TAX › Section 12B-4.054 - Exempt Transactions

Current through Reg. 50, No. 138; July 16, 2024
(1) Registered
				Security Dealers: Promissory notes for a duration of thirty days or less, made
				by a security dealer registered under the provisions of Chapter 517, F.S.,
				shall be exempt from tax, provided these promissory notes are secured by a
				collateral security as defined in Section
				517.021, F.S., and upon which
				the tax under Chapter 201, F.S., has been paid.
(2) Certificate of Deposit: Certificates of
				deposit issued by a bank, banking association, or trust company are
				exempt.
(3) Wholesale Warehouse
				Mortgage Agreements: All promissory notes, non-negotiable notes and other
				written obligations to pay money given pursuant to a wholesale warehouse
				mortgage agreement as provided under Section
				201.21, F.S., shall be exempt
				from the tax only when the amount of tax due on or in respect to the collateral
				obligation(s) given as security has been paid. The exemption does not apply to
				the amount of the indebtedness evidenced by a note or other written obligation
				to pay money that is in excess of the amount of the indebtedness evidenced by
				such collateral obligation(s) given as security. The maximum of tax due on any
				excess of the indebtedness is $2, 450.
(4) Contingent Obligations: A written promise
				to pay money which is not fixed and absolute at the time of execution is not
				subject to tax.
(5) 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, 152 So. 432
				(1934)). However, where the assignment of a mortgage is given as collateral
				security for a new loan, the assignment is a taxable mortgage when recorded in
				this state.
Cross Reference - subsection
				  12B-4.053(27),
				  F.A.C.
(6) Assignment of
				Conditional Sale Contract: An assignment of a conditional sale contract does
				not come within the terms of the Documentary Stamp Tax Act. Therefore, such
				assignments are not taxable. However, the assignment of contract as collateral
				security for a new loan, when recorded in the state, is taxable. (1931 Op.
				Att'y. Gen. Fla. 1931-32 Biennial Report, Page 853 (Oct. 23, 1931); 1931 Op.
				Att'y. Gen. Fla. 1931-32 Biennial Report, Page 854 (Oct. 23, 1931))
(7) Unsigned Documents: A note or written
				obligation to pay money which is not signed by maker or obligor is not taxable.
				(Lee v. Quincy State Bank, 127 Fla. 765, 173 So. 909 (1937))
(8) Leases: A lease of tangible personal
				property which does not contain an unconditional obligation to pay money is not
				subject to tax, unless the lease provides that the lessee will become the
				unconditional owner of the property when the total of the rental payments
				equals the value of the property being leased.
(9) Agreement for Deed: No Personal
				Liability: Contracts for sale of land, which contain no "written obligation to
				pay money" of the same nature of promissory notes and non-negotiable notes, are
				not to be deemed written obligations to pay money within the purview of Section
				201.08(1)(a),
				F.S. (State v. Green, 132 So. 2d 761 (Fla. 1961)). Attorney General Opinion
				059-244 is construed as extending to contracts for the sale of land which
				contain express obligations to pay money, of the same genus as promissory notes
				and non-negotiable notes. With this limitation, Opinion 059-244 is adhered to
				and confirmed (1961 Op. Att'y. Gen. Fla. 061-176 (Oct. 27, 1961)). If the
				following provision is incorporated in agreement for deed: ". . . as against
				the buyer or any subsequent purchaser from the buyer or any beneficiary for
				whom they may be acting, it being the understanding of the parties that the
				seller will look only to the land itself for payment of the balance of the
				purchase price, " there is no obligation to pay money in the contract and no
				documentary stamps are due. However, if such agreement for deed is filed or
				recorded in Florida, it would be subject to the documentary stamp tax under
				Section 201.08(1)(b),
				F.S.
(10) Rights 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))
Cross Reference - subsection
				  12B-4.053(5),
				  F.A.C.
(11) Revolving Charge
				Account - No "Promise to Pay" Contained in Sales Slip: Retailer's Flexible
				charge account application agreement which is dependent upon the happening of a
				contingency before any obligation is created, that is, the purchase of goods
				and the signing of a sales slip which is a mere acknowledgment of delivery of
				goods and does not in itself contain any promise to pay is not subject to tax.
				(Maas Brothers, Inc. v. Dickinson, 195 So. 2d 193 (Fla. 1967))
Cross Reference - subsection
				  12B-4.053(20),
				  F.A.C.
(12) Cashier's Check:
				A cashier's check is a check, draft, or other order for the payment of money
				drawn by the cashier of a bank upon either his own or some other bank, in which
				funds of his bank are deposited, and is not a written obligation for the
				payment of money as contemplated by the provisions and requirements of the
				Documentary Stamp Tax Act. Therefore, no tax is required on cashier's checks.
				(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))
(13) Documents Delivered in
				Another State - "Promise to Pay": Where a company sells merchandise under
				agreement or contract outside the State of Florida, and the merchandise is
				delivered outside the State. Subsequently the purchaser moves to Florida, and
				the unpaid balance due on such contract or agreement is forwarded to one of the
				company's stores in Florida. Such contracts are not Florida transactions even
				after the agreement is forwarded to one of the Florida stores for collection.
				Therefore, the documentary stamp is not required upon the balance due at the
				time the contracts are brought into Florida. (1944 Op. Att'y. Gen. Fla. 044-174
				(June 12, 1944))
(14) Conditional
				Sales Contracts - Executed Outside Florida and Assigned to Florida Finance
				Company: Conditional sales agreements, evidencing the sale of motor vehicles,
				from a customer to a motor vehicle dealer in Georgia, discounted and assigned
				to a finance company doing business in Florida, are not subject to documentary
				stamp taxes under Florida Statutes, when such agreements are entirely entered
				into and executed in Georgia, and the finance company enters into the matter
				after the conditional sales contract is binding. (1962 Op. Att'y. Gen. Fla.
				062-11 (Jan. 18, 1962))
(15) C. O.
				D. Order - Order and Purchase Contract From Out of State Vendor: Where a person
				doing business in the state sends an ordinary purchase order for the purchase
				of merchandise to a non-resident doing business in another state, which order
				is accepted in another state and the merchandise shipped interstate, such
				ordinary purchase order, when it contains no express promise to pay for the
				merchandise ordered and the same is shipped on open account or cash on delivery
				is not taxable. (1946 Op. Att'y. Gen. Fla. 046-357 (Aug. 10, 1946))
(16) Document Executed Outside the State to
				Florida Payee - Payable Outside This State: A promissory note made in another
				state, by a foreign corporation to a payee of this state, payable at a bank in
				another state is not taxable. (1960 Op. Att'y. Gen. Fla. 060-82 (April 21,
				1960))
(17) Contract Brought into
				State for Collection: Contracts for the purchase and sale of real property
				located in this state, made, executed and delivered in other states, and sent
				into this state for purposes of collection only are not subject to tax. (1960
				Op. Att'y. Gen. Fla. 060-209 (Dec. 30, 1960))
(18) Surety Bonds: Surety bonds which are to
				insure the doing of certain things required by the conditions of such bonds and
				which contain a promise to pay a sum only in the event of the happening of the
				named contingency are not taxable. (1944 Op. Att'y. Gen. Fla. 044-356 (Dec. 6,
				1944))
(19) Travel Checks: A travel
				check is issued by the bank and thereupon becomes an order for the payment of
				money by the bank when properly countersigned, much in the character of a
				cashier's check and is therefore not taxable. (1931 Op. Att'y. Gen. Fla.
				1931-32 Biennial Report, Page 893 (Dec. 22, 1931))
(20) Banker's or Trade Acceptances: Banker's
				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. The maximum tax due on a banker's or trade acceptance is $2,
				450. 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. (1961 Op. Att'y. Gen. Fla. 066-18 (Mar. 11, 1966))
Cross Reference - subsection (16) of Rule
				  12B-4.053,
				  F.A.C.
(21) Pawn Tickets:
				Transactions between pawnbrokers and their customers concerning pawns made
				between them are not "written obligations to pay money" within the purview of
				Section 201.08, F.S., unless the pawn
				ticket or a copy thereof contains a written promise to pay money, or is
				otherwise specifically within some section of Chapter 201, F.S. Whether a pawn
				ticket is a written promise to pay money must be determined from the face of
				that document. (1961 Op. Att'y. Gen. Fla. 061-12 (Jan. 25, 1961))
(22) Military Bases - Written Obligation to
				Pay Money: Written obligations to pay money executed on military bases are not
				taxable. However, any recorded documents evidencing such indebtedness will
				require tax. (1963 Op. Att'y. Gen. Fla. 063-136 (Nov. 13, 1963))
(23) Credit Unions - Written Obligations to
				Pay Money: Written obligations to pay money executed by state or federal
				chartered credit unions are exempt. (1957 Op. Att'y. Gen. Fla. 057-21 (Jan. 21,
				1957))
Cross Reference - subsection
				  12B-4.053(10),
				  F.A.C.
(24) Obligations
				Executed by Governmental Entities: No tax is required on obligations executed
				by the United States or its agencies, or by the state, counties, municipalities
				or any political subdivisions or agency of the state.
Cross Reference - subsection
				  12B-4.002(2)
				  and paragraph 12B-4.002(3)(b),
				  F.A.C.
(25) Student Loans:
				Documentary stamp tax is not required on promissory notes executed by students
				who are receiving financial aid from federal or state assistance programs, or
				any financial aid program administered by a state university or community
				college, or loans guaranteed by the Federal Government or the state when
				federal regulations prohibit the assessment of such taxes against the borrower.
Cross Reference - subsection
				  12B-4.053(29),
				  F.A.C.
(26) Industrial
				Development Authorities and Florida Housing Finance Corporation: Lease purchase
				agreements, agreements for sale, agreements or contracts for deeds, notes and
				mortgages securing a promise to pay money to an industrial development
				authority or the Florida Housing Finance Corporation by a private entity in
				connection with the issuance of bonds under Chapter 159 and 420, F.S., are
				exempt from tax under Chapter
				201.08, F.S.
Cross Reference - subsection
				  12B-4.013(17),
				  F.A.C.
(27) Foreign Notes:
(a) Notes and other written obligations to
				pay money are exempt from stamp tax if the makers or obligors are individuals
				residing outside the United States or business organizations or other persons
				located outside the United States, at the time of making or execution of the
				note or written obligation. This exemption does not apply to the following:
1. Mortgages, trust deeds, security
				agreements, or other evidences of indebtedness relating to the purchase or
				transfer of real property located in Florida and filed or recorded in this
				state.
2. If the purpose of the
				financing is to finance all or part of the purchase of personal property for
				use in Florida, unless such personal 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 Section
				199.023(9),
				F.S.
3. If at the date of the
				instrument, the individual obligor resides within the United States; or, if a
				majority of the equity securities of the maker of the document are owned by
				individuals residing within the United States or business organizations located
				within the United States.