When did Florida's warehouse-mortgage exemption prevent documentary stamp and nonrecurring intangible tax on a lender's loan, collateral assignments, and purchased loans?

Plain-English summary

The out-of-state warehouse loan agreement was not subject to Florida documentary stamp or nonrecurring intangible tax, and qualifying collateral assignments did not create a second layer of tax. The agreement was made, executed, delivered, and held outside Florida and initially was not secured by Florida real property.

Florida collateral assignments that pledged already-taxed Florida loan obligations were protected by the wholesale warehouse mortgage exemption. The result depended on all documentary stamp and nonrecurring intangible tax due on the underlying Florida collateral obligations having already been paid.

The Department also approved three related results: purchasing loans from the taxpayer's affiliate did not create added tax; non-Florida collateral documents executed or delivered in Florida remained untaxed if they contained no promise to pay, did not alter the warehouse debt or acknowledge funding, and had no Florida real-property security; and bringing completed loan, lease, and assignment documents into Florida solely for servicing and collection did not create tax.

What this means for you

Warehouse financing requires transaction-by-transaction tracing. The principal obligation, underlying collateral loan, collateral assignment, affiliate transfer, and later servicing move each have separate tax rules.

The exemption prevents duplicative tax, not the original tax on Florida collateral obligations. If the underlying Florida note or mortgage was taxable, that tax had to be paid before the warehouse collateral assignment received the exemption.

Common questions

Q: Why was the warehouse loan agreement itself untaxed? It was made, executed, delivered, and held outside Florida and was not initially secured by Florida real property.

Q: Could a Florida-recorded collateral assignment be exempt? Yes, when made under the warehouse agreement and the required tax had already been paid on the pledged Florida collateral obligation.

Q: Did buying an existing Florida loan from an affiliate create another tax? No. The taxpayer became the holder through a purchase and assignment, and the prior nonrecurring tax had been paid.

Q: Could non-Florida assignment documents be signed or delivered in Florida? On the stated facts, yes, if they merely granted security, contained no payment promise, did not change the warehouse obligation or acknowledge funding, and were not secured by Florida real property.

Q: Did moving the documents into Florida for servicing trigger tax? No. They were brought in solely to collect and service completed transactions, with Florida taxes already paid where due.

Citations and references

• Fla. Stat. §§ 201.01 and 201.08 — documentary stamp tax on obligations and recorded indebtedness
• Fla. Stat. § 201.21 — wholesale warehouse mortgage exemption
• Fla. Stat. § 201.23(1)(c) — out-of-state obligations brought into Florida for collection
• Fla. Stat. § 199.133 — nonrecurring intangible tax tied to Florida real-property security
• Fla. Stat. § 199.145(2) — no additional nonrecurring tax after a taxed obligation is assigned
• Fla. Admin. Code rr. 12B-4.053(35) and 12B-4.054 — out-of-state notes, assignments, and warehouse collateral
• Fla. Stat. § 213.22 — Technical Assistance Advisements

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 97M-004

Original ruling text

SUMMARY

A warehouse loan agreement made, executed and delivered outside of Florida which is not secured by a mortgage in Florida is not subject to the Documentary stamp tax and nonrecurring intangible tax. Documentary stamp tax and nonrecurring intangible tax will not be due upon the execution, delivery, filing or recordation in Florida of the Florida collateral assignment documents which pledge Florida collateral obligations as security for the taxpayer's obligation under the warehouse loan agreement, provided that the tax was paid on the Florida collateral obligations. No documentary stamp tax or nonrecurring intangible tax will be due on the purchase by the taxpayer and assignment to the taxpayer of Florida and non-Florida collateral obligations from its affiliate, who originated the loans.

Aug 21, 1997

Re: Technical Assistance Advisement No. 97(M)-004 Florida Documentary Stamp Tax; Florida Nonrecurring Intangible Tax; Warehouse Mortgage Exemption Sections 201.01, 201.08, 201.21, 201.23, 199.133, 199.145, F.S. XXX (The Taxpayer) XXX (The Lender) XXX (Affiliate) XXX (Servicing Agent) XXX (The Trustee) XXX (The Custodian)

Dear :

This is in response to your letter dated May 30, 1997, requesting a Technical Assistance Advisement regarding the applicability of Documentary Stamp Tax and Intangible Tax, under the facts and documents set forth herein.

Statement of Facts

The Taxpayer is an out-of-state limited liability company which has negotiated and entered into a $XX warehouse mortgage loan agreement (the "Warehouse Loan Agreement") with an out-of state corporation (the "Lender"). The Warehouse Loan Agreement, which was made, executed and delivered outside Florida, contains the Taxpayer's unconditional obligation to pay amounts actually funded by the Lender pursuant to the Warehouse Loan Agreement. To date, nothing has been filed or recorded in Florida with regard to the Warehouse Loan Agreement or any collateral to be provided by Taxpayer to secure its payment obligations thereunder (as described below). The Lender will hold the Warehouse Loan Agreement outside of Florida.

Pursuant to the Warehouse Loan Agreement, the Taxpayer is entitled to obtain funds from the Lender to make Florida and non-Florida loans directly to third parties, which loans to third parties will be either (i) secured by a recorded mortgage encumbering a fee simple interest in real estate, (ii) secured by a recorded mortgage encumbering a leasehold interest in real estate, (iii) secured by a perfected security interest in personal property, or (iv) secured by leases of personal property which, for Florida documentary stamp tax purposes, will be treated as personal property financing transactions.

Additionally, the Taxpayer will be entitled to use the warehouse loan proceeds to purchase Florida and non-Florida real property which it will lease to third parties (the "True Lease Transactions").

The Taxpayer also will be entitled to purchase secured loans, which loans will be similar to the four types of loans originated by the Taxpayer as described above, and real property subject to True Lease Transactions from a Florida corporation, an affiliate of the Taxpayer ("Affiliate"). Prior to any such purchase of loans and real property by Taxpayer from Affiliate and the assignment of same to the Taxpayer, Florida documentary stamp tax and nonrecurring intangible tax due with respect to such loan transactions originated by Affiliate and the True

Lease Transactions, if any, will have been paid in accordance with Florida Statutes Chapters 199 and 201.

The four types of loans originated by the Taxpayer, as described above, and the secured loans originated by Affiliate and purchased by the Taxpayer from Affiliate, as described above, are hereinafter referred to individually and collectively as the "Collateral Obligations."

For purposes of analyzing the Florida taxation of the Taxpayer's activities, the Taxpayer's transactions (as summarized above) generally may be categorized as follows: (1) Florida Collateral Obligations, (2) non-Florida Collateral Obligations, and (3) non-Collateral Obligations (i.e., True Lease Transactions).

Florida Collateral Obligations will involve the Taxpayer's making loans to third parties which will be secured by mortgages or pledges of Florida assets (i.e., real and personal property situated in Florida). Notes, mortgages and security agreements creating the Florida Collateral Obligations generally will be made, executed and delivered in Florida. When notes or other written obligations to pay money are made, executed or delivered in Florida, or when mortgages or security agreements relating to Florida Collateral Obligations are filed or recorded in Florida, documentary stamp taxes will be paid on the principal amount of the Collateral Obligations in accordance with Florida Statutes Section 201.08 and applicable Florida Administrative Code Rules. Likewise, all nonrecurring intangible taxes due under Florida Statutes Chapter 199 will be paid when the note or other written obligation to pay money is secured by a mortgage encumbering Florida real property. Florida Collateral Obligations include Florida secured loans which are originated by Affiliate and purchased by the Taxpayer from Affiliate.

Non-Florida Collateral Obligations will involve the Taxpayer making loans to third parties which will be secured by mortgages or pledges of real and personal property situated outside of Florida. All notes or other written obligations to pay money, mortgages and security agreements creating and securing the non-Florida Collateral Obligations will be made,

executed and delivered outside of Florida. However, some of the following documents may be made, executed or delivered in Florida: commitment letters, closing statements, UCC financing statements, side letters, construction loan agreements (where applicable), draw requests and escrow agreements.

The Taxpayer specifically represents that none of the nonFlorida Collateral Obligations documents made, executed or delivered in Florida will:

(i)

Contain a written promise to pay;

(ii)

Define, amend, modify or enlarge any existing promise to pay; or

(iii)

Acknowledge receipt of funds.

In no event will documents evidencing or securing the nonFlorida Collateral Obligations be recorded or filed in Florida. Non-Florida Collateral Obligations include non-Florida secured loans which are originated by Affiliate and purchased by the Taxpayer from Affiliate.

True Lease Transactions will involve the Taxpayer's using Warehouse Loan Agreement proceeds to purchase (and in some cases construct improvements on) Florida and non-Florida real property, and then leasing such property to third party lessees pursuant to the terms of a typical arm's-length (non-financing) lease agreement. True Lease Transactions also may involve the Taxpayer's entering into a ground lease of undeveloped Florida or non-Florida real property and then constructing improvements thereon for eventual lease to third parties under a typical arm's-length (non-financing) lease agreement. The documentary stamp tax on deeds imposed under Florida Statutes Chapter 201 will be paid with respect to the Taxpayer's purchase of any Florida real property, and any documentary stamp tax and nonrecurring intangible tax imposed under Florida Statutes Chapters 201 and 199 in respect of any recorded collateral assignments of leases or mortgages on Florida property granted by the Taxpayer to Lender will be paid in full.

The Warehouse Loan Agreement requires the Taxpayer to grant a security interest in the Collateral Obligations in favor of

the Lender (the "Collateral Assignments"). Typically, the Collateral Assignments will be either a collateral assignment of mortgage or an assignment of security agreement. Similarly, the Warehouse Loan Agreement requires the Taxpayer to grant a security interest in favor of the Lender in its rights relating to the True Lease Transactions, either by a collateral assignment of landlord's interest in a lease or by a recorded mortgage.

Pursuant to the terms of a servicing agreement (the "Servicing Agreement"), the Florida and non-Florida Collateral Obligations documents and the True Lease Transaction documents (not all of which are secured by real estate) will be brought into Florida to be held by a Florida corporation affiliated with the Taxpayer (the "Servicing Agent"), for the purposes of collecting payments on the Collateral Obligations and True Lease Transactions and paying the Taxpayer's payment obligation to Lender under the Warehouse Loan Agreement. The Servicing Agent holds a lender license under Florida Statutes Section 494.006494.0077.

The Warehouse Loan Agreement requires Taxpayer to assign its interests relating to the Collateral Obligations and the Taxpayer's interests relating to the True Lease Transactions to the Lender. Pursuant to the securitization provisions of the Warehouse Loan Agreement, the Taxpayer entered into a trust agreement (the "Trust Agreement") with Servicing Agent and a bank (the "Trustee"). The Trust Agreement provides that Taxpayer will grant a security interest in the Collateral Obligations and the Taxpayer's interests in the True Lease Transactions to Trustee, which will hold the security interests for the benefit of the Lender. Pursuant to a custodial agreement (the "Custodial Agreement"), Trustee authorized a bank (the "Custodian") to take possession of the Collateral Obligations documents outside of Florida for the purpose of perfection under Article 9 of the UCC, among other things.

The Collateral Assignments and the Collateral Assignment Documents will not incorporate by reference the Warehouse Loan Agreement, but will state that they are given as security for the Taxpayer's obligations under the Warehouse Loan Agreement.

The Collateral Assignment Documents assigning the Taxpayer's interest in Florida Collateral Obligations and True Lease Transactions to or in favor of the Lender generally will be made, executed, delivered and recorded or filed in Florida, whereas the Collateral Assignment Documents transferring the Taxpayer's interest in non-Florida Collateral Obligations and True Lease Transactions to or in favor of the Lender may be, from time to time, made, executed and delivered in Florida, but will only be recorded or filed outside of Florida.

Requested Advice

(A) The Warehouse Loan Agreement is not subject to Florida documentary stamp tax or nonrecurring intangible tax because it was not made, executed or delivered in Florida. Florida Statutes Sections 201.01; 201.08 and 199.133; Florida Administrative Code Rule 12B-4.053(35). (B) The Warehouse Loan Agreement and non-Florida Collateral Assignment Documents will not be subject to documentary stamp tax or nonrecurring intangible tax by reason of or as a result of the execution or delivery of non-Florida Collateral Assignment Documents in Florida, provided that the non-Florida Collateral Assignment Documents do not contain, define, amend, modify or enlarge the Taxpayer's promise to pay the principal sums due under the Warehouse Loan Agreement, do not acknowledge the funding of the Warehouse Loan Agreement proceeds or the Taxpayer's loans to third parties, and are not secured by Florida real property. Florida Statutes Sections 201.01, 201.08 and 199.133(2); Florida Administrative Code Rule 12B-4.053(35). (C) Documentary stamp tax and nonrecurring intangible tax will not be due upon the execution, delivery, filing or recordation in Florida of the Florida Collateral Assignment Documents, which documents pledge Florida Collateral Obligations as security for the Taxpayer's obligation under the Warehouse Loan Agreement. Florida Statutes Sections 201.21, 199.133 and 199.145(2); Florida Administrative Code Rule 12B-

4.054(4).
(D) No documentary stamp tax or nonrecurring intangible tax will be due on the purchase by Taxpayer and assignment to Taxpayer of Florida and non-Florida Collateral Obligations from Affiliate, which Collateral Obligations represent loans Previously originated by Affiliate. Florida Administrative Code Rule 12B-4.054(6); Florida Statutes Sections 199.133 and 199.145(2). (E) No documentary stamp tax or nonrecurring intangible tax will be due upon bringing the Florida and nonFlorida Collateral Obligations and True Lease Transaction documents and the Collateral Assignment Documents into Florida to be held by the Servicing Agent for the purposes of collecting payments from third parties in respect of the Collateral Obligations and True Lease Transactions and, in turn, paying the Taxpayer's obligation to Lender under the Warehouse Loan Agreement. Florida Administrative Code Rule 12B4.053(35); 1980 Op. Att'y. Gen. Fla. 080-79 (Sept. 24, 1980); Florida Statutes Sections 201.23(1)(c); 199.133 and 199.145(2).

Provisions of Law

Florida Statutes Section 201.08 imposes documentary stamp tax on promissory notes and other written obligations to pay money which are made, executed or delivered in Florida, and upon mortgages, trust deeds, security agreements and other evidences of indebtedness which are filed or recorded in Florida.

A promissory note which is made, executed and delivered outside of Florida is not a taxable document for documentary stamp tax purposes within the purview of Florida Statutes Sections 201.01 and 201.08. 1980 Op. Att'y. Gen. Fla. 080-79 (Sept. 24, 1980); See also Florida Administrative Code Rule 12B4.053(35).

Promissory notes which have been made, executed and delivered outside of Florida may be brought into Florida for collection without being subject to tax. Florida Statutes

Section 201.23(1)(c); Florida Administrative Code Rules 12B4.054(18) and 12B-4.053(35).

An assignment of a mortgage by a lender to a new lender who has purchased the note and mortgage and becomes the holder of the note and mortgage is not subject to documentary stamp tax. However, where the assignment of a mortgage is given as collateral security for a new loan, the assignment is a taxable mortgage when recorded in Florida. Florida Administrative Code Rules 12B-4.054(6) and 12B-4.053(28).

Florida Statutes Section 201.21 exempts from all excise taxes principal obligations when the maker thereof pledges or deposits with the payee or holder thereof, pursuant to any agreement commonly known as a wholesale warehouse mortgage agreement, as collateral security for the payment thereof, any collateral obligation or obligations, provided all excise taxes imposed under Chapter 201 upon or in respect to such collateral obligation or obligations shall have been paid. The term "collateral obligation" means any note, bond, or other written obligation to pay money secured by mortgage, deed of trust, or other lien upon real or personal property. A collateral assignment of a collateral obligation made pursuant to a wholesale warehouse mortgage agreement does not invalidate the exemption from documentary stamp taxation under this provision. Florida Statutes Section 201.21; Florida Administrative Code Rule 12B-4.054(4).

Florida Statutes Section 199.133(1) imposes a one-time nonrecurring tax on every promissory note and other obligation for payment of money if, and to the extent, such note or obligation is secured by a mortgage, deed of trust, or other lien upon Florida real property.

The nonrecurring tax applies to a note, bond, or other obligation for payment of money only to the extent it is secured by mortgage, deed of trust, or other lien upon real property situated in Florida. Florida Statutes Section 199.133(2).

No additional nonrecurring intangible tax is due upon the assignment by the obligee of a note, bond, or other obligation

for the payment of money upon which the nonrecurring tax previously has been paid. Florida Statutes Section 199.145(2).

Determination

The responses to your questions are as follows:

(A) The Warehouse Loan Agreement is not subject to Florida documentary stamp tax or nonrecurring intangible tax because it was not made, executed or delivered in Florida.

Documentary Stamp Tax: The Taxpayer's written obligation to pay money to the Lender is set forth exclusively in the Warehouse Loan Agreement. The Warehouse Loan Agreement was made and executed by the Taxpayer outside Florida and delivered to the Lender outside Florida. Since the Florida documentary stamp tax is not imposed upon obligations to pay money which are made, executed and delivered outside Florida, the Warehouse Loan Agreement is not subject to the documentary stamp tax.

Nonrecurring Intangible Tax: When the Warehouse Loan Agreement was made, executed and delivered outside Florida, it was not secured by a mortgage, deed of trust, or other lien upon real property situated in Florida. The making, execution and delivery of the Warehouse Loan Agreement outside of Florida did not give rise to nonrecurring intangible taxes.

(B) The Warehouse Loan Agreement and non-Florida Collateral Assignment Documents will not be subject to documentary stamp tax or nonrecurring intangible tax by reason of or as a result of the execution or delivery of non-Florida Collateral Assignment Documents in Florida, provided that the non-Florida Collateral Assignment Documents do not contain, define, amend, modify or enlarge the Taxpayer's promise to pay the principal sums due under the Warehouse Loan Agreement, do not acknowledge the

funding of the Warehouse Loan Agreement proceeds or the Taxpayer's loans to third parties, and are not secured by Florida real property.

Documentary Stamp Tax: The Florida documentary stamp tax applies, in part, to promissory notes and other written obligations to pay money which are made, executed or delivered in Florida. The Warehouse Loan Agreement will not be subject to Florida documentary stamp tax because the Warehouse Loan Agreement confirms and completes the Taxpayer's obligation to pay money to the Lender and was made, executed and delivered outside of Florida.

The non-Florida Collateral Assignment Documents, including those which are made, executed and/or delivered in Florida, will not be subject to documentary stamp tax because such documents will grant merely a security interest in favor of the Lender and will not contain a promise to pay, will not define, amend, modify or enlarge the Taxpayer's promise to pay under the Warehouse Loan Agreement, and will not acknowledge the funding of the Warehouse Loan Agreement proceeds or the Collateral Obligations loan proceeds.

Nonrecurring Intangible Tax: The non-Florida Collateral Assignment Documents will not be subject to nonrecurring intangible tax because they will not be secured by mortgage, deed of trust, or other lien upon real property situated in Florida. To the extent the Warehouse Loan Agreement is secured by non-Florida Collateral Obligations, the Warehouse Loan Agreement will not be subject to nonrecurring intangible tax.

(C) Documentary stamp tax and nonrecurring intangible tax will not be due upon the execution, delivery, filing or recordation in Florida of the Florida Collateral Assignment Documents, which documents pledge Florida Collateral Obligations as security for the Taxpayer's obligation under the Warehouse Loan Agreement.

Documentary Stamp Tax: The documentary stamp tax, absent an exemption, taxes collateral assignments of mortgages or security agreements which are filed or recorded in Florida. However, the wholesale warehouse mortgage exemption provided in Florida Statutes Section 201.21 exempts from the documentary stamp tax promissory notes and other obligations to pay money ("principal obligations") where, pursuant to a wholesale warehouse mortgage agreement, the maker of the principal obligation pledges to or deposits with the obligee, as collateral security for the payment of the principal obligation, any note or other written obligation to pay money which is secured by a mortgage, deed of trust, security agreement, or other lien upon real or personal property with respect to which all documentary stamp taxes imposed thereon have been paid. The pledging of a specific collateral obligation to secure a specific principal obligation, if required under the terms of the wholesale warehouse mortgage agreement, does not invalidate the applicability of the wholesale warehouse mortgage exemption. Florida Statutes Section 201.21.

In the present case, the mere execution and delivery of Collateral Assignment Documents in Florida will not subject such documents to documentary stamp tax because such documents will not contain a promise to pay. The filing or recording in Florida of Collateral Assignment Documents assigning the Taxpayer's interests in Florida Collateral Obligations in favor of the Lender, absent a specific exemption, would be subject to Florida documentary stamp tax. However, pursuant to the terms of the Warehouse Loan Agreement, the Taxpayer is required to pledge or collaterally assign to or in favor of the Lender the Florida Collateral Obligations as collateral security for the payment of the Taxpayer's obligation to pay money to the Lender under the Warehouse Loan Agreement. Accordingly, assuming all Florida documentary stamp taxes due upon or in respect to all Florida Collateral

Obligations have been paid, the Collateral Assignment Documents assigning the Taxpayer's interests in Florida Collateral Obligations in favor of the Lender, when filed or recorded in Florida, will not be subject to Florida documentary stamp tax.

Nonrecurring Intangible Tax: No additional nonrecurring intangible tax will be due upon the recordation or filing in Florida of the Florida Collateral Assignment Documents because a nonrecurring tax previously has been paid upon the recordation or filing of the Florida Collateral Obligation documents.

(D) No documentary stamp tax or nonrecurring intangible tax will be due on the purchase by Taxpayer and assignment to Taxpayer of Florida and non-Florida Collateral Obligations from Affiliate, which Collateral Obligations represent loans previously originated by Affiliate.

Documentary Stamp Tax: The Taxpayer also will utilize a portion of the Warehouse Loan Agreement proceeds to purchase Collateral Obligations originated by Affiliate, as described above. Pursuant to Florida Administrative Code Rule 12B-4.054(6), an assignment of a mortgage by a lender to a new lender who has purchased the note and mortgage and becomes the holder of the note and mortgage is not taxable. The assignment by Affiliate of the Collateral Obligations and its interest therein to the Taxpayer will be exempt from documentary stamp tax.

Nonrecurring Intangible Tax: No additional nonrecurring intangible tax will be due upon the purchase by Taxpayer and assignment to Taxpayer of the Florida Collateral Obligations obtained from Affiliate because a nonrecurring tax previously has been paid. No nonrecurring intangible tax will be due upon the purchase by Taxpayer and assignment of the non-Florida Collateral Obligations to Taxpayer because such obligations will not be secured by mortgage, deed of

trust, or other lien upon real property situated in Florida.

(E) No documentary stamp tax or nonrecurring intangible tax will be due upon bringing the Florida and nonFlorida Collateral Obligations and True Lease Transaction documents and the Collateral Assignment Documents into Florida to be held by the Servicing Agent for the purposes of collecting payments from third parties in respect of the Collateral Obligations and True Lease Transactions and, in turn, paying the Taxpayer's obligation to Lender under the Warehouse Loan Agreement.

Documentary Stamp Tax: Pursuant to the terms of the Servicing Agreement, the Florida and non-Florida Collateral Obligations and True Lease Transaction documents and the Collateral Assignment Documents will be brought into Florida to be held by the Servicing Agent solely for the purposes of collecting payments on and otherwise servicing the Collateral Obligations and True Lease Transactions and paying the Taxpayer's payment obligation to Lender under the Warehouse Loan Agreement.

Prior to being brought back into Florida for servicing, each of the Florida Collateral Obligations will have been fully made, executed and delivered in Florida and any mortgages or other security documents or agreements will have been recorded or filed in Florida and any Florida documentary stamp taxes due in respect of such transactions will have been paid. Likewise, all Florida Collateral Assignment Documents will have been fully made, executed and delivered, and recorded or filed, in Florida. Similarly, all leases and other documentation relating to Florida True Lease Transactions which will be brought back into Florida will have been fully executed and recorded in Florida.

Correspondingly, prior to being brought into Florida for servicing, each of the non-Florida Collateral

Obligations will have been fully made, executed and delivered outside of Florida and any mortgages or other security documents or agreements will have been recorded or filed outside of Florida, and no Florida documentary stamp taxes will be due or will have been paid. Likewise, all non-Florida Collateral Assignment Documents will have been fully made, executed and delivered, and recorded or filed, outside of Florida. Similarly, all leases and other documentation relating to non-Florida True Lease Transactions which will be brought into Florida will have been fully executed and recorded outside of Florida.

Because the Collateral Obligations and True Lease Transaction documents and the Collateral Assignment Documents thereafter will be brought into Florida solely for purposes of collecting payments due from third parties on the Collateral Obligations and True Lease Transactions and paying the Taxpayer's payment obligation to the Lender under the Warehouse Loan Agreement, no documentary stamp taxes will be due in connection with the bringing of such obligations and documents into Florida.

Nonrecurring Intangible Tax: No additional nonrecurring intangible tax will be due upon bringing the Florida and non-Florida Collateral Obligations and True Lease Transaction documents and the Collateral Assignment Documents into Florida because the nonrecurring tax only applies to a note, bond, or other obligation for payment to the extent it is secured by mortgage, deed of trust, or other lien upon real property situated in Florida. Since the nonrecurring intangible tax has been paid with regard to the Florida Collateral Obligations, no additional tax is due upon the assignment by the obligee of a note, bond, or other obligation for the payment of money upon which the nonrecurring tax previously has been paid.

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,

Joy B. Eldred, C.P.A.
Tax Law Specialist
Technical Assistance and Dispute Resolution Office of General Counsel

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