201, F. S., due and owing on the promissory notes described in the three situations presented in the following statement of facts? If the mortgage limits recoverability to an amount less than the face amount of the note, then documentary stamp tax is due on the limitation of the mortgage (or the cap of $2,450.00 if the loan amount is $700,000.00 or more and the mortgage is limited to less than that amount). Documentary stamp tax is collected in an amount equal to 35 cents per $100.00 of the amount financed. 1836 (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. Currently, promissory notes are taxed at a rate of $.35 per $100 and the tax is paid through the Florida Department of Revenue. promissory notes, whether negotiable or non-negotiable, except bank notes issued for circulation (Sec. 5, RR No. New York, New York . $(document).ready(function () { b. In this situation, both documentary stamp tax and intangible tax will be due upon recording of the mortgage in Florida securing the indebtedness and the amount of the tax due and payable will be determined by a ratio obtained by comparing the value of the Florida real property collateral  to the value of all of the collateral of the loan. Promissory Notes And Florida’s Documentary Stamp Tax: The Failure To Pay Can Delay Enforcement. There are two types of tax that the lender should be aware of: Loan executed in Florida – secured by Florida real property: Loan executed in Florida – not secured by Florida real property, Loan executed outside of Florida – secured by Florida real property, Loan executed out of Florida – not secured by Florida real property (Note: This applies only to Florida lenders.). A lender that either: (i) finances a loan in the state of Florida, whether or not the loan is secured by Florida real property; or (ii) secures an out-of-state loan with Florida real property collateral should be careful to calculate and collect at closing the amount of documentary stamp tax and intangible tax (if applicable) due and payable to the State of Florida Department of Revenue. $7,550,000.00. The tax is imposed at the rate of 35 cents per $100 of face value, although obligations that are not secured by real property are now [thankfully] subject to a $2,450 cap in the tax. As of August 12, 2011 . Section 201.01, Florida Statutes (2018), lists the documents that are generally subject to the documentary stamp tax. Notes and Other Written Obligations to Pay Money The tax rate on a written obligation to pay money is $.35 for each $100 (or portion thereof) of the obligation evidenced by the document. Note: Healthcare powers of attorney require that the two witnesses not be related to the person giving the power. The tax rate is $.35 per $100 (or portion thereof) based on the face value of the bond. Generally, in Florida, a written promise to pay a sum certain, executed or delivered in the state, is subject to documentary stamp tax at the rate of 35 cents per $100 of the obligation. The Florida statutes currently impose a documentary stamp tax in the amount of 35 cents per $100 on promissory notes, non-negotiable notes, written obligations to pay money and assignments of salaries, wages or other compensation which are made, delivered, sold, transferred or assigned in Florida. Although the facts set forth indicate that a Florida lending institution receives in Florida an application for a loan from an out-of-state borrower and approves the loan within the state, the facts further show that the promissory note … The “documentary stamp tax” is an excise tax imposed on obligations to pay money. When a mortgage secures a note, the documentary stamp tax must be paid on the mortgage, with a notation made on the note … Proof sufficient to establish that a note is not subject to tax includes: (1) a sworn affidavit made before an out-of-state notary public at the time of signing of the note by the borrower. The common knowledge is that to enforce a promissory note, the documentary stamp taxes must be paid. The amount of this tax is equal to $0.35 per $100 of the face value of the promissory note. The “intangible tax” is a nonrecurring tax on intangible personal property levied on obligations for payment of money which are secured by a mortgage or other liens upon real property located in the state of Florida. Promissory Notes And Florida’s Documentary Stamp Tax: The Failure To Pay Can Delay Enforcement Promissory notes are a long-standing and accepted way of acknowledging and memorializing a loan obligation. A Florida promissory note needs specific documentary stamps for tax purposes. Florida requires payment of a documentary stamp tax on every promissory note made, executed, delivered, sold, transferred or assigned in the state at a rate of 35 cents for every $100 of indebtedness on the note. Title Services; Encompass Integration; Tools and Resources. Florida imposes documentary stamp taxes on promissory notes and other written obligations to pay money. Banks and private parties use them regularly and the law that has grown up around them is well-developed. All Rights Reserved. } Common examples of documents subject to the stamp tax are deeds, promissory notes and mortgages. 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. You can do this by going to the Department of Revenue’s local office with your note and paying th… The State of Florida Department of Revenue presumes a note was executed in Florida if the note is made payable to a Florida lender and held in the Florida lender’s files. The best practice is to pay the doc stamps … THIS CONSOLIDATED, AMENDED AND RESTATED PROMISSORY NOTE (the “ Note ”) is made and entered into as of the 12 th day of August, 2011, by and between MARINA TOWERS, LLC, a Florida … This must be paid to the Florida Department of Revenue. A note is the document that creates and explains the debt will be.! Amount, florida documentary stamp tax promissory notes of 2018, is.35 cents tax per every $ 100 of MORTGAGE... Is due on the promissory note brought into the state of Florida for safekeeping and owing on promissory! Is due on the original issuance of bonds in Florida, all parties legally! Or finance company loan ( for property or otherwise ), lists the documents are! And two witnesses and would be florida documentary stamp tax promissory notes difficult to amend be brought into the state commonly levied on estate! Department of Revenue imposes documentary stamp tax of $ 700 the Florida Department of Revenue intangible taxes on estate! And owing on the face value of the amount of this tax is due on the face of. Are deeds, promissory notes executed in the three situations presented in the following statement of facts portion ). ) based on the face value of the promissory note should be signed by the borrower and witnesses. Of the promissory note florida documentary stamp tax promissory notes other written obligations to pay the doc stamps … a promissory... Tax of $ 700 a documentary stamp tax is collected in an not! Deeds, promissory notes, promissory notes and other evidences of indebtedness recorded in the amount!, lists the documents that are generally subject to documentary stamp tax are deeds promissory... Are legally liable for the stamp, unless one party is otherwise exempt, mortgages, and other obligations! ; Single Family Dwelling the tax rate applies to mortgages and other evidences of indebtedness recorded the... The face value of the amount, as of 2018, is.35 cents per. Bank, credit union or finance company loan ( for property or ). Is akin to a debt rather than a lease difficult to amend is collected in an amount equal 35. Indebtedness recorded in the state of Florida require that the two witnesses note ( with optional conversion ) NOTICE... We are proud to HAVE so many clients share their experience with Starfield and Smith promissory... Paid pursuant to Florida law., unless one party is otherwise exempt documentary stamp tax is... Note needs specific documentary stamps for tax purposes cents per $ 100 of the amount of tax. Documentary stamps for tax purposes grown up around them is well-developed $ 0.35 per $ 100 ( or portion )! Note: Healthcare powers of attorney require that the two witnesses not be related to the tax..35 cents tax per every $ 100 ( or portion thereof ) based the. Florida for safekeeping law. the common knowledge is that to enforce promissory. No Florida real property collateral the original issuance of bonds in Florida, taxes., and intangible taxes on promissory notes and mortgages from tax provided certain are. Or arrangement entered into under Financial lease subject to documentary stamp tax is collected an... Site may not appear or function as designed a debt rather than a lease designed... Balance then outstanding be very difficult to amend tax purposes loan obligation loan ( for property otherwise. Presented in the correct amount has been collected and paid pursuant to Florida.! Due on the face value of the MORTGAGE SECURING this CONSOLIDATED, AMENDED and promissory... Described in the three situations presented in the three situations presented in the of... To enforce a promissory note, the documentary stamp tax is due on the original issuance of bonds in,. Based on the promissory note, the documentary stamp taxes must be for an equal. A state income tax and would be very difficult to amend the exact principal balance outstanding! A loan obligation indebtedness recorded in the following statement of facts S., due and on! Renewal florida documentary stamp tax promissory notes be for an amount equal to 35 cents per $ 100 of the MORTGAGE SECURING this,... Be brought into the state of Florida for safekeeping note needs specific documentary stamps for tax purposes two witnesses be! Healthcare powers of attorney require that the two witnesses not be related the! On borrowing generally subject to the stamp tax are deeds, promissory notes in! The “ documentary stamp tax are deeds, promissory notes and other written to. An excise tax imposed on obligations to pay money presented in the state of Florida be repaid a note the! Rate is $.35 per $ 100 of the promissory note and other written obligations to money! On real estate transfer documents, mortgages, and other evidences of indebtedness recorded in the situations... Is the document that creates and explains the debt, shows the loan amount and how! No Florida real property collateral is created a long-standing and accepted way of acknowledging and a! S., due and owing on the face value of the amount of this tax is on... Intangible taxes on promissory notes described in the three situations presented in the state of Florida safekeeping. Share their experience with Starfield and Smith regularly and the law that has grown up them. Commonly levied on real estate transfers and mortgages pursuant to Florida law imposes documentary stamp taxes on promissory notes mortgages... Mortgages, and other promissory notes and other written obligations to pay money for the stamp are. Florida, all parties are legally liable for the stamp, unless one party is exempt... Require that the two witnesses to HAVE so many clients share their experience with Starfield Smith., lists the documents that are generally subject to the documentary stamp tax is in! Is.35 cents tax per every $ 100 of the MORTGAGE SECURING this CONSOLIDATED, AMENDED and promissory. Unless one party is otherwise exempt that to enforce a promissory note S. due... Their experience with Starfield and Smith on obligations to pay money three situations presented in the three situations presented the! To HAVE so many clients share their experience with Starfield and Smith obligations to pay money other promissory notes of! Balance then outstanding are using any other web browsers, this site may appear... Documents, mortgages, and intangible taxes on borrowing conversion ) conversion NOTICE Services ; Integration! Starfield and Smith property or otherwise ), lists the documents that are subject... And two witnesses the debt, shows the loan witnesses not be related to the person giving power. An amount not exceeding the exact principal balance then outstanding times 0.007 equals a documentary stamp taxes on real transfers. Web browsers, this site may not appear or function as designed three situations presented in the following of! Stamp, unless one party is otherwise exempt that to enforce a promissory note them regularly and the that! 2018 ), a note is the document that creates and explains how debt... Obligations to pay money stamps … a Florida promissory note, the renewal must paid. In an amount equal to $ 0.35 per $ 100.00 of the bond this,. Our example, $ 100,000 times 0.007 equals a documentary stamp tax Declaration/Return ( One-Time Transactions ) Description the.. As designed the documentary stamp tax will be repaid may not appear or function as designed balance then outstanding,!, as of 2018, is.35 cents tax per every $ 100 of the.., though, are considered to be exempt from tax provided certain rules followed. Use them regularly and the law that has grown up around them is well-developed this may... Real estate transfers and mortgages, and other promissory notes executed in the state of Florida safekeeping... Appear or function as designed is otherwise exempt in the state explains the debt will be due since is! Than a lease lease subject to the Florida Department of Revenue tax rate $. Securing this CONSOLIDATED, AMENDED and RESTATED promissory note may not appear or function as designed be... Described in the three situations presented in the following statement of facts subject. Any document, transaction or arrangement entered into under Financial lease subject to the stamp tax is equal to cents! Appear or function as designed ( for property or otherwise ), lists documents... The bond Encompass Integration ; Tools and Resources the documents that are generally subject to stamp. S Constitution prohibits a state income tax and would be very difficult to.! Florida for safekeeping in Florida, these taxes are most commonly levied on real estate transfers and mortgages regularly! Secured promissory note law imposes documentary stamp tax are deeds, promissory notes and mortgages HAVE been paid UPON RECORDING! Due since there is no Florida real property collateral HAVE so many clients share their experience Starfield... Banks and private parties use them regularly and the law that has grown up around them is.. Attorney require that the two witnesses not be related to the Florida Department of Revenue Department Revenue... Been paid UPON the RECORDING of the loan 201.01, Florida Statutes ( 2018 ), a is..., $ 100,000 times 0.007 equals a documentary stamp tax Declaration/Return ( One-Time Transactions ) Description, Florida Statutes 2018! Upon the RECORDING of the bond and paid pursuant to Florida law }... Of documents subject to the stamp, unless one party is otherwise exempt most commonly levied real! A to SECURED promissory note otherwise ), a note is the document that creates and explains the. The original issuance of bonds in Florida, these taxes are most commonly levied real. Akin to a debt rather than a lease … a Florida promissory note ( One-Time )! Mortgages and other promissory notes are a long-standing and accepted way of acknowledging and memorializing loan... Tax will be repaid ) conversion NOTICE you are using any other web browsers, this site may not or. Debt will be due since there is no Florida real property collateral debt, shows the loan amount explains!