Documentary stamp and intangible taxes
Florida charges three taxes that show up on almost every closing statement. Memorize the rates; the exam will not give them to you.
| Tax | Rate | Based on | Customarily paid by |
|---|---|---|---|
| Documentary stamps on the deed | $0.70 per $100 or fraction | Total consideration (price) | Seller |
| Documentary stamps on the note | $0.35 per $100 or fraction | Amount of the new note | Buyer |
| Nonrecurring intangible tax | 0.002 (2 mills) | Amount of the new mortgage | Buyer |
Who pays is set by custom and the sales contract, not by the tax statutes, so a problem can assign them differently. Follow the problem.
The rounding rule
Both documentary stamp taxes are charged per $100 or fraction of $100. Round the amount up to the next whole $100 before you multiply. A $245,050 price is treated as $245,100: 2,451 × $0.70 = $1,715.70. The intangible tax has no rounding; multiply the loan by 0.002.
Assumed mortgages
When a buyer takes over the seller's existing loan, the assumed balance is part of what the buyer pays, so deed stamps are due on the full price. No new note is signed, so there are no note stamps or intangible tax on the assumed loan.
Working backward
If you know the deed stamps, divide by 0.70 and multiply by 100 to find the price. $1,960 ÷ 0.70 = 2,800 hundreds, or $280,000.
Miami-Dade County uses a different deed stamp rate for some property. Exam problems use the statewide rate unless they say otherwise.