Documentary stamp taxes are the taxes that the Florida Department of Revenue charges on certain transactions, most notably real estate transactions. They are generally calculated at a rate of 70 cents for each $100 of consideration. A recent article underscores some confusion regarding the payment (or non-payment) of documentary stamp taxes. Most assume that documentary stamp taxes are always due when a real estate transaction occurs, and are to be calculated on the full purchase price being paid.
This is not always correct, and there are several instances in which the transaction is exempt from the payment of documentary stamp taxes. The following are some of the more prominent examples:
- Any conveyance made by the United States or its agencies, such as Fannie Mae or Freddie Mac.
- Any conveyance to the United States or its agencies
- Conveyances between governmental agencies
- Conveyances that are exempt from tax by the US tax code
- Certain conveyances from nonprofit organizations
- A conveyance from a personal representative in accordance with a will
- Certain conveyances made pursuant to a plan confirmed by Section 1129 of the Bankruptcy Code
There are actually 15 enumerated exemptions to the payment of documentary stamp taxes under the Florida Administrative Code. As always, if you have any questions about the payment of documentary stamp taxes, please contact your real estate attorney.
This communication is not intended to establish an attorney client relationship, and to the extent anything contained herein could be construed as legal advice or guidance, you are strongly encouraged to consult with your own attorney before relying upon any information contained herein.
All rights reserved. This copyrighted material may not be re-published without permission. Links are encouraged.
1819 Main Street, Suite 1000, Sarasota, FL 34236 P (941) 954-9991 F (941) 954-9992
100 W. Venice Avenue, Suite A, Venice, FL 34285 P (941) 955-9991 F (941) 953-9992
8130 Main Street, Suite 206, Lakewood Ranch, FL 34202 P (941) 907-9022 F (941) 907-9024