Was a conservation nonprofit's sale of Florida real property to the Internal Improvement Trust Fund exempt from documentary stamp tax?

Plain-English summary

The Department ruled that documents transferring two parcels of Florida real property from the nonprofit seller to the Board of Trustees of the Internal Improvement Trust Fund qualified for the documentary stamp tax exemption in section 201.02(6).

The seller was exempt from federal income tax under I.R.C. § 501(c)(3). After reviewing materials describing its activities and operations, the Department also deemed preservation of natural resources to be the organization's purpose. Those facts, together with the transfer to the Board, satisfied the exemption.

What this means for you

The exemption is narrower than a general nonprofit-property exemption. This ruling required the specified federal tax status, a natural-resource-preservation purpose, and a transfer to the Board of Trustees of the Internal Improvement Trust Fund.

Common questions

Was documentary stamp tax due on the described deeds? No.

Was section 501(c)(3) status alone enough? No. The advisement separately examined and approved the seller's natural-resource-preservation purpose.

Did the identity of the buyer matter? Yes. The exemption applied to the transfer to the specified Board.

Citations and references

• Fla. Stat. § 201.02(1), (6); Fla. Admin. Code r. 12B-4.014(14); and I.R.C. § 501(c)(3), as cited in the advisement.

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 09B4-007

Original ruling text

SUMMARY
QUESTION: Do the documents conveying real property from the Taxpayer to the Board meet
the exemption requirements pursuant to section 201.02(6), F.S.?
ANSWER: Taxpayer is a nonprofit organization exempt from federal income tax under s.
501(c)(3), I.R.C., whose primary purpose is deemed to be the preservation of natural resources.
Therefore, Taxpayer meets the requirements of section 201.02(6), F.S., and qualifies for the
exemption from documentary stamp tax on the documents transferring real property to the
Board.

October 16, 2009

Re:

Technical Assistance Advisement 09B4-007
Documentary Stamp Tax – Exemption for Sale of Real Property to Trustees of the
Internal Improvement Trust Fund
Sections 201.02(1) and (6), Florida Statutes (F.S.)
Rule 12B-4.014(14), Florida Administrative Code (F.A.C.)
XXX (“Taxpayer”)
XXX (“University”)
XXX (“Board”)
Agreements for Sale and Purchase (“Transaction”)

Dear :
Your letter dated XXX, requests a Technical Assistance Advisement concerning whether
documentary stamp tax is due on a transfer of real property from the Taxpayer to the Board.
This response to your request constitutes a Technical Assistance Advisement under Chapter 1211, F.A.C., and is issued to you under the authority of section 213.22, F.S.
FACTS AS PRESENTED
Taxpayer has entered into a transaction consisting of two agreements for the sale and purchase of
two parcels of Florida real property by the Taxpayer to the Board, who will take fee simple title
to all of the property. The consideration paid by the Board under the transaction is XXX.
Absent an exemption or exclusion from tax, XXX in documentary stamp tax would normally be
due.

Technical Assistance Advisement 09B4-007
Page 2

Taxpayer is a nonprofit organization organized for charitable and education purposes that is
exempt from federal income tax under s. 501(c)(3), I.R.C., and has as its purpose the
preservation of natural resources. Taxpayer is classified as a school for federal income tax
purposes. Through a collaboration with the University entered into in XXX, Taxpayer offers
doctorate and post doctorate fellowships for the purposes of higher education and research,
XXX, XXX and XXX, XXX, XXX, or related disciplines and research facilities supportive of
those specific uses. Taxpayer’s activities are conducted at the XXX (Florida city) campus.
QUESTION
Are the documents that convey the real property from the Taxpayer to the Board exempt from
documentary stamp tax pursuant to section 201.02(6), F.S., and Rule 12B-4.014(14), F.A.C.?
PROVISION OF LAW AND DISCUSSION
Documentary stamp tax is imposed under section 201.02(1), F.S., on deeds and other instruments
transferring an interest in real property based on the consideration given. Consideration
includes, but is not limited to, monies paid or to be paid. The tax is computed at the rate of $.70
per $100 of the consideration or fraction thereof.
An exemption from the documentary stamp tax is granted for documents that transfer Florida
real property from certain nonprofit organizations to the Board. For purposes of this exemption,
the nonprofit organization must be an organization exempt from federal income tax under s.
501(c)(3), I.R.C., whose purpose is the preservation of natural resources. See section 201.02(6),
F.S., and Rule 12B-4.014(14), F.A.C.
The Taxpayer is an organization exempt from federal income tax under s. 501(c)(3), I.R.C. In
regards to the preservation of natural resources requirement, the Taxpayer described some of its
charitable purposes. These include the following:
•

XXX;

•

XXX;

•

XXX;

•

XXX;

•

XXX;

•

XXX;

•

XXX;

•

XXX.

Technical Assistance Advisement 09B4-007
Page 3

CONCLUSION
Taxpayer has provided the Department with numerous materials, including brochures, bulletins,
and published articles, which describe in depth the Taxpayer’s activities and operations in the
field of the preservation of natural resources. Upon review of the material provided and
discussions with the Taxpayer’s representatives, it is deemed the Taxpayer’s purpose consists of
the preservation of natural resources. Since Taxpayer also is a nonprofit organization exempt
from federal income tax under s. 501(c)(3), I.R.C., and is transferring property to the Board,
Taxpayer qualifies for the exemption from documentary stamp tax pursuant to section 201.02(6),
F.S.
This response constitutes a Technical Assistance Advisement under section 213.22, F.S., which
is binding on the Department only under the facts and circumstances described in the request for
this advice as specified in section 213.22, F.S. Our response is predicated on those facts and the
specific situation summarized above. You are advised that subsequent statutory or
administrative rule changes or judicial interpretations of the statutes or rules upon which this
advice is based may subject similar future transactions to a different treatment than expressed in
this response.
You are further advised that this response, your request and related backup documents are public
records under Chapter 119, F.S., and are subject to disclosure to the public under the conditions
of section 213.22, F.S. Confidential information must be deleted before public disclosure. In an
effort to protect confidentiality, we request you provide the undersigned with an edited copy of
your request for Technical Assistance Advisement, the backup material and this response,
deleting names, addresses and any other details which might lead to identification of the
taxpayer. Your response should be received by the Department within 15 days of the date of this
letter.
If you have any further questions with regard to this matter and wish to discuss them, you may
contact me directly at (850) 922-4844.
Sincerely,

Joy B. Eldred, CPA
Tax Law Specialist
Technical Assistance and Dispute Resolution

JBE/

Record ID: 65884