Senate Bill sb1542c1

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    Florida Senate - 2001                           CS for SB 1542

    By the Committee on Finance and Taxation; and Senator Sebesta





    314-1967-01

  1                      A bill to be entitled

  2         An act relating to the excise tax on documents;

  3         amending s. 201.02, F.S.; exempting certain

  4         transfers of homestead real property that

  5         involve spouses and that create a tenancy by

  6         the entireties from the tax on deeds and other

  7         instruments relating to real property or

  8         interests therein; providing that a certificate

  9         of title issued by a clerk of court in a

10         judicial sale of real property pursuant to

11         foreclosure proceedings shall be subject to

12         said tax; providing for the method of

13         computation of the tax when the certificate of

14         title is issued to the party in whose favor a

15         judgment of foreclosure is granted; providing

16         for retroactive application; clarifying that

17         said tax does not apply to contracts and

18         related documents for selling the residence of

19         an employee relocating at the employer's

20         direction; providing an effective date.

21

22  Be It Enacted by the Legislature of the State of Florida:

23

24         Section 1.  Subsection (7) of section 201.02, Florida

25  Statutes, is amended, and subsections (8) and (9) are added to

26  that section, to read:

27         201.02  Tax on deeds and other instruments relating to

28  real property or interests in real property.--

29         (7)(a)  Taxes imposed by this section do not apply to a

30  deed, transfer, or conveyance from an individual to that

31  individual and that individual's spouse that creates a tenancy

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    Florida Senate - 2001                           CS for SB 1542
    314-1967-01




  1  by the entireties in real property to which the homestead tax

  2  exemption provided by s. 196.031 is applicable.

  3         (b)  Taxes imposed by this section do not apply to a

  4  deed, transfer, or conveyance between spouses or former

  5  spouses pursuant to an action for dissolution of their

  6  marriage wherein the real property is or was their marital

  7  home or an interest therein. Taxes paid pursuant to this

  8  section shall be refunded in those cases in which a deed,

  9  transfer, or conveyance occurred 1 year before a dissolution

10  of marriage. This paragraph subsection applies in spite of any

11  consideration as defined in subsection (1). This paragraph

12  subsection does not apply to a deed, transfer, or conveyance

13  executed before July 1, 1997.

14         (8)  A certificate of title issued by the clerk of

15  court in a judicial sale of real property under an order or

16  final judgment issued pursuant to a foreclosure proceeding

17  under chapter 702 shall be subject to the tax imposed by

18  subsection (1); however, if the certificate of title is issued

19  to the party in whose favor the judgment of foreclosure is

20  granted in the foreclosure proceeding, the amount of tax shall

21  be computed based solely on the amount of the highest and best

22  bid received for the property at the foreclosure sale.

23         (9)  Taxes imposed by this section do not apply to a

24  contract to sell the residence of an employee relocating at

25  his or her employer's direction or documents related to the

26  contract, which contract is between the employee and the

27  employer or between the employee and a person in the business

28  of providing employee relocation services. Taxes on such

29  transactions apply only to the transfer of the real property

30  comprising the residence by deed that names the grantee.

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    Florida Senate - 2001                           CS for SB 1542
    314-1967-01




  1         Section 2.  The method of computation of tax provided

  2  by section 201.02(8), Florida Statutes, as created by this

  3  act, on a certificate of title which is issued to the party in

  4  whose favor a judgment of foreclosure is granted in a

  5  foreclosure proceeding shall apply retroactively, except that

  6  all taxes that have been collected must be remitted, and taxes

  7  that have been remitted before July 1, 2001, on transactions

  8  that are subject to the method of computation provided by this

  9  act are not subject to refund. It is further the intent of the

10  Legislature that section 201.02(9), Florida Statutes, as

11  created by this act, confirms and clarifies existing law.

12         Section 3.  This act shall take effect July 1, 2001.

13

14          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
15                             SB 1542

16

17  This committee substitute amends the documentary stamp tax
    provisions regarding deeds to provide that:
18
          The documentary stamp tax is not chargeable as to a
19        deed, transfer, or conveyance of homestead real property
          between spouses for the purpose of creating a tenancy by
20        the entireties.

21        The documentary stamp tax does not apply to a contract
          to sell the residence of an employee relocating at his
22        or her employer's direction or documents related to the
          contract.
23
          The documentary stamp tax on a certificate of title is
24        calculated solely on the final bid amount if the
          certificate of title is issued to the party in whose
25        favor the judgment of foreclosure is granted in the
          foreclosure proceeding, notwithstanding the amount of
26        any underlying indebtedness.

27  This committee substitute further provides that this provision
    applies retroactively, except that all taxes that have been
28  collected must be remitted and taxes remitted before the
    effective date are not subject to refund.
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