1. (1) Signature Required. Tax is due on a document that contains a promise to pay, and on each renewal thereof. To be taxable, the document must be signed by the maker or obligor.
2. (2) Purported Lease. An instrument which purports to be a lease, whereby title to tangible personal property remains vested in the seller until the total of the payment of rentals equals the value of the property leased, at which time the “lessee” becomes the unconditional owner of the property, is a “mortgage” and is subject to tax, even though payment of the rentals is not an unconditional obligation to pay money.
3. (3) Executed to Governmental Agencies or Instrumentalities. Instruments made payable to the United States or its agencies, or to the state, counties, municipalities, or any political subdivision of the state, are taxable to the nonexempt party unless the instrument is exempt by federal or state law.
4. (4) Right to Rescind. Lot purchase contracts in existence beyond a stated period of time without having been rescinded by the purchaser as provided for in the terms of the contract, constitute “written obligations to pay money” subject to tax.
5. (5) Chattel Mortgage. A chattel mortgage or conditional bill of sale, which contains in the body of the contract or mortgage the promise to pay not evidenced by a separate note or writing must evidence the required tax. If there is a separate promissory note evidencing the indebtedness, and a recorded chattel mortgage which is security for such note, the tax is to be paid on the recorded document at the time of recordation and a notation of the tax and the amount on the promissory note.
6. (6) Document Signed in Another State; Payable in Florida. Where a promissory note is signed by its maker in another state and mailed to the payee in Florida, after which it is examined, approved, and accepted, and a loan in the principal amount of the note is made to the maker, such note is subject to tax.
7. (7) Credit Unions. A promise to pay given to either state or federally chartered credit unions is subject to tax.
8. (8) Demand Loans. Demand loans that contain a written obligation to pay money are subject to tax based upon the full amount of the demand loan.
9. (9) Banks, Savings and Loan Associations: Notes or other written obligations to pay money executed by national or state banks and state or federal chartered savings and loan associations are subject to tax.
10. (10) Religious or Nonprofit Organizations. A note or other obligation to pay money executed by a religious or nonprofit organization is subject to tax.
11. (11) Bankers or Trade Acceptances. Bankers 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.
12. (12) Annuity Agreements. An annuity agreement issued by a party to an individual in consideration of gifts or donations is taxable as a written obligation to pay money, and the tax is determined by the value of the annuity based upon the life expectancy of the donee.
13. (13) Vendor’s Lien. Where a deed of conveyance recites the retention of a vendor’s lien and contains a provision that the vendee agrees to the reservation of such lien and to pay the unpaid balance of the purchase price, tax is due based upon the unpaid balance.

14. (14) Assumption of Note and Mortgage. An assumption of any note, any mortgage, or both, whether incorporated in a conveyance which is accepted by the purchaser, or assumed in a separate document, is a taxable renewal under Section 201.08(1)(a), F.S., and not exempt under Section 201.09, F.S.

    Cross Reference – subsections 12B-4.052(5) and (11), F.A.C.

15. (15) Wage Assignments: Assignments of salaries or wages are taxable.
16. (16) Payment in Full After Execution of Document: A document which constitutes a written obligation to pay money is taxable upon its execution even though payment may be made immediately after execution regardless of the period of time the obligation may be outstanding.
17. (17) Contracts which Convey an Interest in Realty. A contract which contains a written obligation to pay money and which conveys an interest in realty, such as a timber contract or a mineral contract, is taxable as a conveyance of an interest in realty under Section 201.02(1)(a), F.S., and is also taxable as a written obligation to pay money under Section 201.08(1)(a), F.S.
18. (18) Agreement or Contract for Deed. An agreement or contract for deed that meets the statutory definition of a “mortgage” is subject to tax when filed or recorded in Florida based upon the indebtedness secured, even if the indebtedness is contingent. An agreement or contract for the sale of land that is not recorded and contains no written obligation to pay money is not subject to tax.
19. (19) “Wrap-Around” Notes. Tax is due upon the face amount of a note under which a maker obligates himself to pay a sum certain, even though the payee obligates himself to use such payments to pay off a prior note.

20. (20) Assignment of Mortgage. The assignment of a mortgage as collateral security is taxable when recorded in Florida.

    Cross Reference – subsection 12B-4.054(4), F.A.C.

21. (21) 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 tax. Tax is due based on the face amount of the note, with a maximum tax due of $2,450, whether or not funds are advanced at time of delivery. If the note is secured by a recorded mortgage, tax must be paid on the mortgage at time of recording and a notation made on the note that tax has been paid on the mortgage. The $2,450 tax limit placed on a note or other written obligation to pay money, executed in Florida or approved and accepted in Florida, does not apply to a mortgage, security agreement, or other lien filed or recorded in Florida. Renewals are also taxable unless exempted under Section 201.09, F.S.
22. (22) Student Loans. All notes executed by students for loans that are guaranteed by the federal government or the state are taxable, unless federal regulations prohibit the assessment of such taxes against the borrower.

23. (23) Out-of-State Notes – Secured by Florida Mortgage. A mortgage recorded in Florida encumbering Florida real or personal property which is security for an out-of-state note is subject to tax as follows:

    1. (a) Indebtedness Secured. The tax is based upon the full amount of the indebtedness secured, whether the indebtedness is contingent or not, unless paragraphs (b) and (c) apply. See also Sections 201.08(5) and (7), F.S.
    2. (b) Secured by Multi-State Mortgage. When a note is made in another state and is secured by a multi-state mortgage recorded in Florida which describes and pledges the Florida property and the out-of-state property, tax is due on the mortgage when filed or recorded in Florida, based upon the percentage of indebtedness which the value of the mortgaged property located in Florida bears to the total value of all the mortgaged property. However, when the mortgage limits recovery to less than the amount of the indebtedness secured, the tax is due on the amount to which recovery is limited. The mortgage is required to state the value of the property in Florida and the other state(s) and also the percentage of the Florida property in relation to the total property. When the tax due is based upon the amount to which recovery is limited on a mortgage, the mortgage is not required to state the value of the property in Florida and the other state(s), nor is the mortgage required to state the percentage of the Florida property in relation to the total property.

1. (1) $100,000/(2) $1,000,000 x (3) $1,000,000* = $100,000*

   *Tax would be calculated on $100,000.

2. (c) Secured by Florida Mortgage only. When a mortgage describing and pledging only the Florida property is recorded in Florida, which only partially secures an out-of-state loan, and the loan is also secured by a mortgage(s) on out-of-state property, only a pro rata portion of the indebtedness secured by the Florida mortgage is taxable. The tax will be based upon the percentage of indebtedness which the value of the mortgaged property located in Florida bears to the total value of all mortgaged property, unless the value of the Florida property exceeds this amount. In such case, the tax will be based upon the value of the Florida property. In no event will the tax be due on more than the indebtedness secured by the Florida mortgage or any other amount to which the mortgagee limits its recovery. The mortgage is required to state the value of the property in Florida and the other state(s) and also the percentage of the Florida property in relation to the total property. When the tax due is based upon the amount to which recovery is limited on a mortgage, the mortgage is not required to state the value of the property in Florida and the other state(s), nor is the mortgage required to state the percentage of the Florida property in relation to the total property.

1. (1) $400,000/(2) $500,000 x (3) $550,000 = $440,000*

   *Tax is calculated upon the pro rata amount of the loan in the amount $440,000, rather than the value of the Florida property, since the value of the Florida property is less than the pro rata amount of the indebtedness.

   Example 2:

1. (1) $600,000*/(2) $1,500,000 x (3) $1,200,000 = $480,000

   *Tax is calculated on value of Florida property in the amount of $600,000, rather than the pro rata amount of the loan, since the value of the Florida property is more than the pro rata amount of the indebtedness.

   Example 3:

1. (1) $800,000/(2) $1,000,000 x (3) $600,000* = $480,000

   *Tax is calculated on $600,000, since the amount of indebtedness is less than the value of the Florida property but more than the pro rata amount of the loan.

2. (24) In-State Notes-Secured by Florida Mortgage. A mortgage recorded in Florida encumbering Florida real or personal property, which is security for an in-state note, is subject to tax as follows:

   1. (a) Secured by Multi-State Mortgage. When a note is made in Florida and is secured by a multi-state mortgage recorded in Florida, the tax is due on the full amount of the note for notes up to $700,000. For notes larger than $700,000, the tax is due on at least $700,000, or the percentage of the indebtedness which the value of the mortgaged property located in Florida bears to the total value of all the mortgaged property, whichever is greater. However, where the mortgage limits recovery to less than the amount of the indebtedness secured, the tax is due on the full amount of the note, up to $700,000 (with a maximum tax due of $2,450), or the amount to which the mortgage limits recovery, whichever is greater. The mortgage is required to state the value of the property in Florida and the other state(s) and also the percentage of the Florida property in relation to the total property. When the tax due is based upon the amount to which recovery is limited on a mortgage, the mortgage is not required to state the value of the property in Florida and the other state(s), nor is the mortgage required to state the percentage of the Florida property in relation to the total property.
   2. (b) Secured by Florida Mortgage only. When a note is made in Florida and is secured by a mortgage on Florida property and is also secured by an out-of-state mortgage, the tax is due on the full amount of the note for notes up to $700,000. For notes larger than $700,000, the tax is due on $700,000, or the percentage of the indebtedness which the value of the mortgaged property located in Florida bears to the total value of all the mortgaged property, or the value of the property located in Florida, whichever is greater. However, where the mortgage limits recovery to less than the amount of the indebtedness secured, the tax is due on the full amount of the note, up to $700,000 (with a maximum tax due of $2,450), or the amount to which the mortgage limits recovery, whichever is greater. The mortgage is required to state the value of the property in Florida and the other state(s) and also the percentage of the Florida property in relation to the total property. When the tax due is based upon the amount to which recovery is limited on a mortgage, the mortgage is not required to state the value of the property in Florida and the other state(s), nor is the mortgage required to state the percentage of the Florida property in relation to the total property.

3. (25) Recorded Evidences of Obligations: Tax is required on a mortgage, trust deed, security agreement, or other evidence of indebtedness filed or recorded in this state. The tax shall be due on the full amount of the primary obligation secured by said mortgage, trust deed, security agreement, or other evidence of indebtedness. The tax is due only on the full amount of the primary obligation, whether the primary obligation is secured by one or more mortgages from the same obligor, or by an additional or supplemental mortgage from another party. All such mortgages are deemed to secure the primary obligation. For example, a mortgage given as additional collateral, to secure a cross-collateralization agreement or guaranty agreement, or given as substitution of collateral, will not require additional tax if proper tax is paid on the full amount of the primary obligation. However, where proper tax is not paid on the full amount of the primary obligation, the tax shall be paid on any additional or supplemental mortgage. A document recorded which renews or extends an existing obligation is subject to tax, unless it meets the requirements of Section 201.09, F.S. Some examples of documents on which tax may be required, within the limitations stated in this rule, when recorded in this state are:

   1. (a) Mortgage;
   2. (b) Trust Deed;
   3. (c) Indenture;
   4. (d) Supplemental Mortgage or Indenture;
   5. (e) Amendment to Mortgage or Indenture;
   6. (f) Mortgage Modification or Extension Agreement;
   7. (g) Assumption Agreement;
   8. (h) Mortgage Securing Guaranty;
   9. (i) Mortgage Securing Indemnification Agreement;
   10. (j) Mortgage Securing Bail Bond;
   11. (k) Mortgage Securing Letter of Credit; and,
   12. (l) Mortgage Securing Line of Credit.

4. (26) Promissory Notes, Nonnegotiable Notes, and Written Obligations to Pay Money Made, Executed, and Delivered in Another State, and not Secured by a Florida Mortgage: Promissory notes, nonnegotiable notes, and written obligations to pay money (hereinafter, called notes) made, executed, and delivered to a Florida lender in another state are not subject to Florida’s documentary stamp tax. If the notes then are brought into Florida for collection after they have been made, executed, and delivered to the Florida lender, or its agent, in another state, no tax is due. However, if a note is made and executed in another state and delivered to the lender in Florida, the note would be subject to tax. The Department will presume that if a note is made payable to a Florida lender and the note is held by the Florida lender in Florida, then tax will be due unless the lender can establish that the note was made, executed, and delivered to the lender outside the state. Proof sufficient to establish that a note is not subject to tax includes:

   1. (a) A sworn affidavit made before an out-of-state notary public at the time of the signing of the note by the borrower(s) and delivery of the note to the lender attesting that the signing and delivery of the note occurred in the presence of the out-of-state-notary, or
   2. (b) The note itself could bear a notarization and acknowledgment as to where the note was executed, together with an affidavit made before an out-of-state-notary by the lender attesting that the note was delivered to the lender, or its agent out-of-state. Execution and delivery need not occur in the same jurisdiction, provided that both execution and delivery occurred outside of Florida, or
   3. (c) Any other proof that the borrower made, executed, and delivered the note in another state to a Florida lender. Travel vouchers, airplane stubs, and hotel receipts corresponding with the signing and delivery of the note would be acceptable proof.

Rulemaking Authority 201.11(1), 213.06(1) FS. Law Implemented 201.01, 201.08 FS. History–New 8-18-73, Formerly 12A-4.53, Amended 2-21-77, 11-29-79, 4-11-80, 7-27-80, 12-23-80, 3-30-81, 12-30-82, 8-29-84, Formerly 12B-4.53, Amended 12-29-86, 12-5-89, 2-13-91, 10-18-94, 12-30-97, 7-28-98, 1-4-01, 5-4-03, 1-25-26.