Home Buying in Hialeah>Question Details

Owner, Home Buyer in Hialeah, FL

What is a state documentary stamp tax?

Asked by Owner, Hialeah, FL Sat Dec 22, 2012

And does the seller have to pay that ?
Also what would be the normal estimate cost of that in the state of florida?

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2
Phil Rotondo’s answer
Documentary stamp tax is levied at the rate of $.70 per $100 (or portion thereof) on documents that transfer interest in Florida real property, such as warranty deeds and quit claim deeds. (The Miami-Dade County rate is $.60 on all documents plus $.45 surtax on documents transferring anything other than a single-family residence). This tax is usually paid to the Clerk of Court when the document is recorded. The Clerks of Court send the money to the Department of Revenue and the Department distributes the funds according to law.

A reference sheet is available to help determine the correct amount of documentary stamp tax due on documents that transfer an interest in Florida real property.

Documentary stamp tax is also levied at the rate of $.35 per $100 (or portion thereof) on documents that are executed or delivered in Florida, for example:

Notes and other written obligations to pay.
Certain renewal notes.
Bonds (original issuance).
Mortgages.
Liens.

Florida law limits the maximum tax due on notes and other written obligations to $2,450. However, there is no limit on the documentary stamp tax due for mortgages or liens filed or recorded in Florida. Tax is paid to the Clerk of Court if the document is recorded, or sent directly to the Department of Revenue if the document is not recorded.

Documentary stamp tax is payable by any of the parties to a taxable transaction. If one party is exempt, the tax must be paid by the nonexempt party. United States government agencies; Florida government agencies; and Florida's counties, municipalities, and political subdivisions are exempt from documentary stamp tax.
2 votes Thank Flag Link Sun Dec 23, 2012
BEST ANSWER
Doc stamps are a tax paid on the sell of a property.

To answer your question if the seller has to pay for doc stamps the answer is Yes.It is a customary fee paid by the seller But, it depends on how your contract is wriiten because you can negotiate with the buyer for them to pay during the offer and acceptance phase of the transaction.

In Dade this fee is .60 cents per every $100 of the purchase price. The rest of Florida is .70 cent

ex. Purchase price of $150,000 divided by 100 = 1500 x .060 = $900.00 doc stamp fee paid by seller.

Note: Buyers have to pay a note tax and a doc stamp tax.

So, taxes are paid by both buyer and seller.
0 votes Thank Flag Link Sat Jan 5, 2013
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