Was the submitted Florida open-end loan form subject to documentary stamp tax as a written obligation to pay money?

Subject

Open-End Loan Form

Plain-English summary

The submitted open-end loan form was not subject to documentary stamp tax. The Department said a taxable written obligation had to contain, within the document or incorporated documents, a written promise to pay, a sum certain in money, and the borrower's signature.

The reviewed form did not meet those requirements under section 201.08(1).

What this means for you

The conclusion was tied to the exact form submitted. Adding or incorporating any missing element could change whether a loan document is treated as a taxable written obligation.

Common questions

What three elements did the Department require? A written promise to pay, a sum certain in money, and the borrower's signature.

Could referenced documents supply those elements? Yes. The ruling says the form itself or documents it references may contain them.

Did this form meet the test? No.

Citations and references

• Fla. Stat. §§ 201.08(1) and 213.22

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 94B4-010

Original ruling text

Jul 22, 1994

Re: Technical Assistance Advisement No. 94(B)4-010
Documentary Stamp Tax on Open-End Loan Form
XXX (Form)

Dear :

Your request for a technical assistance advisement
regarding the taxability of the Form has been received in this
office.

In order to be taxable under s. 201.08, F.S., a written
obligation to pay money must have the following three elements
within the four corners of the document or must reference other
documents containing these elements:

1. A written promise to pay;
2. A sum certain in money; and
3. The signature of the borrower.

The Form submitted for our review does not meet
requirements under s. 201.08(1), F.S., for taxing purposes.
Therefore, the Form would not be subject to documentary stamp
tax.

This response constitutes a Technical Assistance Advisement
under s. 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 s. 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 and your request
are public records under Chapter 119, F.S., which are subject to

disclosure to the public under the conditions of s. 213.22, F.S.
Your name, address, and any other details which might lead to
identification of the taxpayer must be deleted by the Department
before disclosure. In an effort to protect the confidentiality
of such information, we request you notify the undersigned in
writing within 15 days of any deletions you wish made to the
request or the response.

Sincerely,

Nadine C. Posey
Tax Audit Specialist III
Technical Assistance
NCP/mh