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.
