Florida’s annual intangible tax no longer exists. The Legislature repealed the recurring tax on stocks, bonds, notes, and similar financial assets effective January 1, 2007, so residents have not had to file an annual intangible personal property return since then.1Florida Senate. Chapter No. 2006-312 A separate, one-time intangible tax on mortgages secured by Florida real estate is still on the books, and the documentary stamp tax on notes and mortgages still applies to most real estate financing.
Is There Still an Annual Intangible Tax in Florida?
No. The annual intangible personal property tax was repealed by Chapter 2006-312, Laws of Florida, with the repeal taking effect January 1, 2007.1Florida Senate. Chapter No. 2006-312 Florida residents do not owe a recurring yearly tax on investment portfolios, and the state has not enacted a replacement wealth tax.
If you are reviewing older financial records, estate documents, or a decedent’s tax history, you may still see references to this tax for years before 2007. Those references are historical only.
What the Old Annual Tax Covered
Before repeal, the tax applied to intangible personal property held on January 1 each year, including corporate stocks and shares, government bonds, notes and other obligations for money, and beneficial interests in certain trusts.2Florida Senate. Florida Statutes § 199.0233Florida Senate. Florida Statutes § 199.052 Returns were generally due by June 30.4Florida Senate. Florida Statutes § 199.103 Individual filers received a $250,000 exemption and married couples filing together received $500,000, which kept many smaller portfolios out of the tax entirely.5Florida Senate. Florida Statutes § 199.185
The Non-Recurring Intangible Tax on Mortgages
One piece of the old intangible tax regime survived the 2007 repeal. Florida still imposes a non-recurring intangible tax on obligations secured by a mortgage or other lien on Florida real estate.6Florida Senate. Florida Statutes § 199.133
The rate is 2 mills, or $2.00 per $1,000 of the debt amount, and the tax is paid once, when the mortgage is recorded.6Florida Senate. Florida Statutes § 199.133 Payment usually goes to the Clerk of the Court in the county where the property sits. If the document is not recorded, the tax is paid directly to the state.7Florida Senate. Florida Statutes § 199.135
Documentary Stamp Tax on Notes and Mortgages
The documentary stamp tax is a separate excise tax that applies to written obligations to pay money and to the mortgages or security instruments that back them.8Florida Senate. Florida Statutes § 201.08 It attaches when the obligation is signed, delivered, or recorded in Florida, and it reaches both the underlying debt and the mortgage instrument.
Documents commonly subject to the tax include:
- Promissory notes
- Installment sales contracts
- Certain agreements for deeds
- Renewals of existing notes
Rate and Cap
The current rate is $0.35 per $100 of the debt, or $3.50 per $1,000. A statutory maximum of $2,450.00 caps the tax on certain documents such as promissory notes.8Florida Senate. Florida Statutes § 201.08 That cap does not apply to the tax on recorded mortgages.9Florida Dept. of Revenue. Documentary Stamp Tax – Section: Notes and Mortgages
Who Pays and How
All parties to the document are legally responsible for the tax. The borrower and lender can agree between themselves on who writes the check, but if nothing is paid, the state can look to any of them. In most closings, a title company or closing agent handles payment to the Clerk of the Court. If the taxable document is never recorded, the tax goes directly to the Department of Revenue.10Florida Dept. of Revenue. Documentary Stamp Tax
Future Advances and Renewals
On a mortgage that allows future advances, the tax is paid initially on the amount actually borrowed. As additional funds are drawn, more tax becomes due on those new amounts at the time of the advance. Renewing or modifying a note can trigger additional tax if the principal increases, though modifications that do not change the terms of the debt may not count as taxable renewals.8Florida Senate. Florida Statutes § 201.08
Consequences of Not Paying
A mortgage with a future-advances clause cannot be enforced in court as to those future advances until the tax is paid.8Florida Senate. Florida Statutes § 201.08 Failure to pay the required tax is also a misdemeanor of the first degree, which is why lenders and closing agents treat the stamp tax as a non-negotiable closing cost.