What Are Doc Stamps in Florida?
If you’re buying or selling real estate in the Sunshine State, you’ve likely encountered the term “doc stamps.” So, what are doc stamps in Florida? In short, documentary stamp taxes are excise taxes levied on documents that transfer interest in Florida real property, such as warranty deeds, quitclaim deeds, and mortgages. This tax is required by law and must be paid before the deed can be officially recorded.
FL Documentary Stamp Tax Is Paid By Who?
One of the most common questions during closing is: FL documentary stamp tax is paid by who? By tradition and custom in most Florida counties (except Miami-Dade and Broward, where customs differ slightly), the seller is generally responsible for paying the documentary stamp tax on the deed. However, the buyer is typically responsible for paying the doc stamps on the mortgage and any intangible taxes associated with the new loan.
Is the Buyer or Seller Legally Responsible for Paying Documentary Transfer Tax in Florida?
While custom dictates that the seller pays the tax on the deed, you might wonder: is the buyer or seller legally resposible for paying documentary transfer tax in Florida? From the perspective of the Florida Department of Revenue (DOR), both parties are strictly liable for the tax. If the tax is not paid, the DOR can pursue either the buyer or the seller to collect the outstanding amount. That is why title companies and closing agents ensure these taxes are collected and paid out of the closing proceeds.
Who Normally Pays Transfer Taxes in Florida?
To summarize, who normally pays transfer taxes in Florida?
- The Seller: Pays the doc stamps on the deed (the transfer of the property). Note: Seller stamps on deed Florida rates are currently $0.70 per $100 of consideration (except in Miami-Dade County, where it is $0.60 plus a surtax).
- The Buyer: Pays the doc stamps on the mortgage and the intangible tax on the mortgage.
What Are Docs and Tangible Fees in Florida?
During the closing process, you will see a breakdown of costs. What are docs and tangible fees in Florida? “Docs” refer to the documentary stamp taxes discussed above. “Tangible fees,” or more accurately, the Intangible Tax, is a tax on new mortgages in Florida. The rate is $0.002 per dollar of the mortgage amount. If you are paying in cash, you won’t have to worry about the intangible tax or the doc stamps on a mortgage.
State of Florida Doc Stamps Payment Process
The state of Florida doc stamps payment is typically handled seamlessly by your title company or real estate attorney. They will collect the funds at closing, record the deed and mortgage with the county clerk, and remit the taxes on your behalf. The stamps themselves are not physical stamps anymore, but rather a notation on the recorded document proving the tax was paid.
FAQ: Addressing Specific Concerns
Florida DOR is saying I’m not paying doc stamps but EPN is paying them?
If you received a notice or see that the Florida DOR is saying im not paying doc stamps but epn is paying them?, don’t panic. EPN stands for eRecording Partners Network, which is a popular electronic recording service used by title companies and closing attorneys. When a deed is electronically recorded, EPN acts as the intermediary that physically transfers the funds to the county clerk and the Florida Department of Revenue. So, while your money paid for the tax at closing, EPN is the entity that actually submitted the payment to the state.
