Nonrecurring Intangible Tax
Chapter 199, Florida Statutes (F.S.), imposes nonrecurring intangible
tax on obligations to pay money to the extent the obligation is secured
by a mortgage or lien on Florida real property. The tax is due even if
the mortgage or lien is not recorded or filed in Florida. In no event
will the tax be calculated on an amount greater than the fair market
value of the collateralized Florida real property.
The tax is due only to the extent the obligation is secured by Florida
real property. Thus, if Florida real property and other properties
secure an indebtedness, with neither property required to be looked to
first for collection, the tax may be prorated.
The lender is the taxpayer liable for the nonrecurring intangible tax,
but the lender may pass the amount of the tax to the borrower. The
nonrecurring intangible tax is paid at the time the mortgage is filed or
recorded in Florida. If the mortgage is not recorded within 30 days of
the date the obligation is secured by the mortgage, the tax payment is
to be made directly to the Florida Department of Revenue. Any tax
payment made directly to the Department is delinquent after the 30th day
following the date the obligation is secured by the Florida real
property.
Generally, only unconditional obligations to pay money are subject to
the tax. However, pursuant to section 199.143(3), F.S., a line of credit
obligation is also subject to the nonrecurring intangible tax to the
extent secured by a mortgage on Florida real property. Once the tax has
been paid on the full amount of the line of credit, no additional tax is
due.
The nonrecurring intangible tax rate is 2 mills. The tax is calculated
by multiplying the amount of the obligation secured by Florida real
property by 0.002.
Examples of tax calculation:
-
The amount of an obligation solely secured by a mortgage on Florida
real property is $151,250. The value of the property is $200,000.
$151,250 x 0.002 = $302.50 tax due.
-
The amount of an obligation solely secured by a mortgage on Florida
real property is $151,250. The value of the property is $150,000.
$150,000 x 0.002 = $300 tax due.
-
The amount of an obligation secured by a mortgage on Florida real
property and property located outside Florida is $151,250. The value
of the Florida property is $100,000 and the value of the property
located outside Florida is $100,000. Neither property is to be
looked to first for collection. The portion of the obligation
secured by Florida real property is subject to tax. Since neither
property securing the obligation is to be looked to first for
collection, then the tax may be prorated between the properties.
Thus, the amount of the obligation secured by the Florida real
property is equal to the amount secured by the property located
outside Florida. The tax base is one-half of $151,250 or $75,625,
since the value of the Florida real property and the value of all
other property are equal.
$100,000 divided by $200,000 = 0.50
0.50 x $151,250 = $75,625
$75,625 x 0.002 = $151.25 tax due
The nonrecurring intangible tax is generally paid to the county at the
time the note or mortgage is recorded.
If the tax is not paid to the county, it should be paid directly to
the Florida Department of Revenue with a statement that includes the
name of the parties, date, and amount of note.
Reference: 12C-2.011, Florida Administrative Code
