Could a bank outside Florida's alternate documentary-stamp procedure use notes preprinted with the alternate-procedure statement?

Subject

Alternate Procedure

Plain-English summary

A financial institution that was not authorized for Florida's alternate documentary-stamp procedure could still use a note preprinted with the procedure's tax-paid statement. It could not rely on that statement, however. It had to affix the proper adhesive tax stamps to the document and should cross out the statement or mark it not applicable.

Only an authorized participant could use the alternate procedure to remit tax directly without adhesive stamps. Authorized participants also had to keep the required journal and place the prescribed notation on the document.

What this means for you

Using another institution's preprinted form did not transfer its payment authorization. The institution's actual approval status controlled how documentary stamp tax had to be paid and evidenced.

Common questions

Was the preprinted note itself prohibited? No.

Could the nonparticipant remit tax under the printed statement? No. It had to use adhesive stamps.

What should happen to the alternate-procedure statement? The ruling said it should be crossed out or marked not applicable.

Citations and references

• Fla. Admin. Code r. 12B-4.001(4)
• Fla. Stat. § 213.22

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 94B4-017

Original ruling text

Nov 09, 1994

Re: Technical Assistance Advisement No. 94(B)4-017
Documentary Stamp Tax; Alternate Procedure

Dear :

This is in response to your letter of October 24, 1994,
requesting a Technical Assistance Advisement regarding the
proper use of the required documentary stamp tax statement for
the alternate procedure.

Your question concerns whether notes with the preprinted
required statement used by banks on the alternate procedure can
be used by banks not on the alternate procedure.

Florida Administrative Code Rule 12B-4.001(4), provides
that tax may be collected and remitted to the Department without
affixing adhesive stamps to the document if approved by the
Department. If approved, a journal must be kept and a notation
must be placed on the document to evidence that the tax was
paid. Further, only authorized persons may use the alternate
procedure. There are no provisions prohibiting a note with a
preprinted statement concerning the alternate procedure from
being used by a person not on the procedure. However, only
persons on the procedure may use the statement and remit the tax
to the Department. A person not on the procedure must affix the
adhesive stamps to the document and should either mark through
the statement or indicate that it is not applicable.

Therefore, a financial institution not on the alternate
procedure can use a preprinted note with the alternate procedure
statement as long as it affixes the proper tax to each document.

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,

James E. Silvey
Tax Law Specialist
Technical Assistance

Jes/jes