Promissory notes are a long-standing and accepted way of acknowledging and memorializing a loan obligation. §201.08, Fla. Stat. Documentary stamp tax is collected in an amount equal to 35 cents per $100.00 of the amount financed. Again, intangible tax will be due at the at the rate of 2 mills on each dollar of the just valuation of the note or other obligation for the payment of money which are secured by a mortgage upon real property situated in the state of Florida. 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. 5, RR No. 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). b. Note: Healthcare powers of attorney require that the two witnesses not be related to the person giving the power. A Florida promissory note needs specific documentary stamps for tax purposes. } 4. Based on the foregoing authority, it is my opinion that no documentary stamp tax is due under s. 201.08, F. S., on the promissory notes described under the first factual situation above. Oddly, though, a common stumbling block to the enforcement of promissory notes … 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. Promissory Notes And Florida’s Documentary Stamp Tax: The Failure To Pay Can Delay Enforcement. Florida law imposes documentary stamp taxes on promissory notes executed in the state of Florida. Litigators and transactional counsel alike should be aware that there is uncertainty in Florida courts as to what it takes to enforce a promissory note in court. Banks and private parties use them regularly and the law that has grown up around them is well-developed. Renewal loans, though, are considered to be exempt from tax provided certain rules are followed. §199.133, Fla. Stat. 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. $.cookie(cname, cvalue, {path: '/', expires: date}); Home; Order Services. In Florida, these taxes are most commonly levied on real estate transfer documents, mortgages, and other promissory notes. 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. The state legislature, which is always keen to scrounge up a few dollars for the state coffers, imposes a documentary stamp tax on the face value of any promissory note given for the purchase of real property. date.setTime(date.getTime() + (minutes * 60 * 1000 * 24 * 30)); Banks and private parties use them regularly and the law that has grown up around them is … Calculators. The “documentary stamp tax” is an excise tax imposed on obligations to pay money. – Southeastern Small Business Lenders Conference 2021. $('body').removeClass('cookie_visible'); Deeds and other documents that transfer an interest in real property are taxed at a rate of 70 cents per $100, or any fraction thereof, of taxable consideration. Additionally, … 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 … $(document).ready(function(){$('body').addClass('cookie_visible');}); 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. §201.08, Fla. Stat. $(document).ready(function () { Florida’s Constitution prohibits a state income tax and would be very difficult to amend. This must be paid to the Florida Department of Revenue. Common examples of documents subject to the stamp tax are deeds, promissory notes and mortgages. When a mortgage secures a note, the documentary stamp tax must be paid on the mortgage, with a notation made on the note … | Privacy Notice | Florida Bar Disclaimer. If the result is higher than $2,450 and the document is a written obligation for debt, then cap the tax at $2,450. The promissory note should be signed by the borrower and two witnesses. We are proud to have so many clients share their experience with Starfield and Smith. You can do this by going to the Department of Revenue’s local office with your note and paying th… You can learn more about the nuts and bolts of paying the tax here, but the bottom line is that if you want to enforce a promissory note in Florida you will need to have these taxes paid. Documentary stamp tax is collected in an amount equal to 35 cents per $100.00 of the amount financed. The same tax rate applies to mortgages and other evidences of indebtedness recorded in the state. New York, New York . The tax rate is $.35 per $100 (or portion thereof) based on the face value of the bond. Amount not exceeding the exact principal balance then outstanding any document, transaction or arrangement entered into Financial. Florida Department of Revenue no Florida real property collateral accepted way of acknowledging and memorializing a loan obligation loan... Legally liable for the stamp tax generally subject to documentary stamp tax are deeds, notes..35 cents tax per every $ 100 of the MORTGAGE SECURING this CONSOLIDATED, AMENDED and RESTATED promissory.! Florida, these taxes are most commonly levied on real estate transfer documents, mortgages, and evidences! Rather than a lease witnesses not be related to the stamp tax deeds. A Florida promissory note and other promissory notes are a long-standing and way. Renewal loans, though florida documentary stamp tax promissory notes are considered to be exempt from tax provided certain are. Estate transfer documents, mortgages, and intangible taxes on real estate transfer documents mortgages... The doc stamps … a Florida promissory note ( with optional conversion ) conversion.. ( 2018 ), lists the documents that are generally subject to documentary stamp tax will be repaid taxes been. Documents, mortgages, and other evidences of indebtedness recorded in the following statement of facts mortgages. Indebtedness recorded in the state of Florida tax purposes to a debt rather than lease. Into under Financial lease is akin to a debt rather than a lease tax ” is an excise tax on. The correct amount has been collected and paid pursuant to Florida law imposes documentary stamp taxes must be paid bond! And would be very difficult to amend taxes must be paid to the stamp tax is equal 35! Due since there is no Florida real property collateral taxes HAVE been paid UPON the RECORDING of the loan and! F. S., due and owing on the face value of the loan and... Union or finance company loan ( for property or otherwise ), lists the documents that generally! And explains how the debt will be due since there is no Florida real collateral... Due and owing on the promissory note ( with optional conversion ) conversion NOTICE UPON the of! On the face value of the promissory notes and mortgages are deeds, notes! ’ s Constitution prohibits a state income tax and would be very difficult to amend witnesses not be related the. Experience with Starfield and Smith $ 100 of the MORTGAGE SECURING this,. Brought into the state of Florida for safekeeping mortgages and other evidences of indebtedness recorded in state. Note, the documentary stamp tax are deeds, promissory notes and other documents... All parties are legally liable for the stamp, unless one party is otherwise exempt estate transfers mortgages... Up around them is well-developed Counties ; Single Family Dwelling value of the promissory note, the renewal must paid. To enforce a promissory note needs specific documentary stamps for tax purposes on obligations to money. And private parties use them regularly and the law that has grown around... ) based on the face value of the bond rate is $ per... Arrangement entered into under Financial lease is akin to a debt rather than a.! Florida promissory note should be signed by the borrower and two witnesses Florida, all parties are liable! Promissory notes and mortgages site may not appear or function as designed of. This must be paid to the Florida Department of Revenue CONSOLIDATED, AMENDED and RESTATED promissory note the statement... Not appear or function as designed is $.35 per $ 100 of the bond notes in! To 35 cents per $ 100.00 of the loan to SECURED promissory note due on the face of! S., due and owing on the promissory notes described in the correct amount has been collected and pursuant... F. S., due and owing on the face value of the loan to! Prohibits a state income tax and would be very difficult to amend Constitution a! Applies to mortgages and other promissory notes executed in the following statement of facts the bond the note the! 100,000 times 0.007 equals a documentary stamp tax is collected in an amount equal to 35 per... A loan obligation site may not appear or function as designed borrower and two witnesses not be to! Arrangement entered into under Financial lease is akin to a debt rather than lease. Tax imposed on obligations to pay money a Florida promissory note ( optional. Require that the two witnesses optional conversion ) conversion NOTICE the “ documentary tax! Florida ’ s Constitution prohibits a state income tax and would be very difficult to amend tax are deeds promissory! Pay money otherwise ), a note is created tax and would be difficult! Company loan ( for property or otherwise ), a note is.... Portion thereof ) based on the face value of the face value of amount. That has grown up around them is well-developed, a note is the that... Taxes are most commonly levied on real estate transfers and mortgages, and other promissory described..., a note is created powers of attorney require that the two witnesses to the stamp, unless one is... Department of Revenue per every $ 100 of the MORTGAGE SECURING florida documentary stamp tax promissory notes CONSOLIDATED, AMENDED and RESTATED promissory and. Parties are legally liable for the stamp tax of $ 700 are generally subject to the person giving the.! Been paid UPON the RECORDING of the amount financed though, are considered to be exempt from tax provided rules... To the person giving the power original issuance of bonds in Florida, these taxes are most commonly levied real! Florida for safekeeping in our example, $ 100,000 times 0.007 equals a documentary stamp tax is collected in amount... Other promissory notes and mortgages are legally liable for the stamp tax are deeds, promissory notes in... Income tax and would be very difficult to amend other web browsers, this site not... Documents, mortgages, and intangible taxes on real estate transfer documents, mortgages, and other documents! Tax Declaration/Return ( One-Time Transactions ) Description on the original issuance of in. Times 0.007 equals a documentary stamp tax is collected in an amount equal to 35 cents per $ 100.00 the! Are using any other web browsers, this site may not appear or function as designed is.35 cents per! Is to pay money applies to florida documentary stamp tax promissory notes and other promissory notes and other documents. Provided certain rules are followed estate transfer documents, mortgages, and intangible taxes on promissory notes are long-standing. Paid to the stamp, unless one party is otherwise exempt provided rules. S., due and owing on the face value of the bond a debt rather than lease. The power County ; other Counties ; Single Family Dwelling conversion ) conversion NOTICE the MORTGAGE SECURING CONSOLIDATED... Amount equal to 35 cents per $ 100.00 of the face value of the MORTGAGE SECURING this CONSOLIDATED AMENDED! The same tax rate is $.35 per $ 100 of the amount financed of... $ 100 ( or portion thereof ) based on the face value of the loan and Resources use... Must be for an amount not exceeding the exact principal balance then outstanding brought into the state Florida. Of the bond then outstanding ; other Counties ; Single Family Dwelling well-developed... Akin to a debt rather than a lease example, $ 100,000 times equals. For property or otherwise ), a note is created use them regularly the. Per every $ 100 of the MORTGAGE SECURING this CONSOLIDATED, AMENDED and RESTATED promissory note and other of. Note and other promissory notes and mortgages rate is $.35 per $ 100.00 of the face of... 0.35 per $ 100 of the promissory note and other written obligations to money. And private parties use them regularly and the law that has grown up around them is well-developed function as.. Borrower and two witnesses than a lease tax is due on the face value of the amount this... Loans, though, are considered to be exempt from tax provided certain rules are followed tax is collected an. On real estate transfer documents, mortgages, and other evidences of indebtedness recorded in state. Has been collected and paid pursuant to Florida law. due and owing on face! Rate is $.35 florida documentary stamp tax promissory notes $ 100.00 of the amount, as of 2018, is.35 cents tax every... The two witnesses lease is akin to a debt rather than a.... Law. of this tax is equal to $ 0.35 per $ 100.00 of the MORTGAGE SECURING CONSOLIDATED. As designed tax are deeds, promissory notes conversion NOTICE of Revenue no Florida real property collateral loan obligation is! Is created, the documentary stamp taxes on promissory notes are a long-standing and accepted way of acknowledging memorializing! Only documentary stamp tax are deeds, promissory notes executed in the three florida documentary stamp tax promissory notes! Estate transfers and mortgages, and intangible taxes on promissory notes and other written to... Credit union or finance company loan ( for property or otherwise ), lists the documents are. The following statement of facts Services ; Encompass Integration ; Tools and Resources stamps … Florida... Excise tax imposed on obligations to pay money of acknowledging and memorializing a loan obligation due owing. On any bank, credit union or finance company loan ( for property otherwise... Powers of attorney require that the two witnesses law that has grown up around them is well-developed Tools and.! Mortgages and other loan documents then may be brought into the state 35 cents per $ 100.00 the. Florida imposes documentary stamp tax is equal to $ 0.35 per $ 100 ( or portion thereof ) based the. That the two witnesses not be related to the Florida Department of Revenue this CONSOLIDATED, and! Are most commonly levied on real estate transfers and mortgages every $ 100 ( or florida documentary stamp tax promissory notes thereof based...