Documentary Stamp Tax Exemptions

Documentary Stamp Tax Exemptions Information

Florida's documentary stamp tax (§201.02) generally applies to all deeds and instruments transferring real property at $0.70 per $100 of consideration. However, certain transfers are exempt: transfers between governmental entities, transfers to charitable organizations, transfers resulting from court orders in dissolution of marriage, transfers of homestead property between spouses, transfers to or from certain trusts, transfers resulting from tax deed sales (the tax deed is subject to tax, but the original deed into the tax-delinquent owner is not retaxed), and certain corporate reorganizations. The exemptions must be specifically claimed on the deed when it is presented for recording.

Florida Legal Definition

Documentary stamp tax exemptions in Florida are established by Florida Statutes §201.02 and §201.24 and Florida Administrative Code Chapter 12B-4. Under §201.02(7), deeds to the United States, Florida, or any county or municipality are exempt. Under Florida Administrative Code 12B-4.014, certain intra-entity transfers are exempt, including: transfers between a corporation and its sole stockholder, transfers between a partnership and its partners (when the proportional ownership does not change), and transfers between an LLC and its sole member. Under §201.02(7)(b), transfers resulting from dissolution of marriage (pursuant to a court order) are exempt. The Department of Revenue has issued Technical Assistance Advisements (TAAs) providing guidance on additional exemption scenarios.

How It's Used in Practice

In practice, attorneys claim documentary stamp tax exemptions when eligible transfers occur. The attorney: identifies whether the transfer qualifies for an exemption (reviewing the specific exemption criteria), prepares the deed with the exemption notation (citing the statute or rule authority), prepares the affidavit of exemption (many counties require an affidavit explaining the basis for the exemption), and presents the deed for recording with the claimed exemption. If the clerk's office questions the exemption, the attorney provides the legal authority. Common exemption scenarios include: transferring property between a husband and wife (as part of estate planning), transferring property from an individual to their solely-owned LLC, and transferring property pursuant to a divorce court order. The attorney advises that improperly claiming an exemption may result in: penalties and interest on the unpaid tax, and potential liability for the recording agent.

Key Takeaways

• Certain transfers are exempt from Florida doc stamps.
• Government, charitable, and divorce-related transfers may be exempt.
• Intra-entity transfers (sole owner to LLC) may qualify.
• Exemption must be claimed on the deed at recording.
• Improperly claiming an exemption results in penalties and interest.

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Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC