Florida Real Estate Sales Associate Examination Content OutlineReal Estate Closings and Post-ClosingEasy
A buyer is purchasing a property for $400,000. They are obtaining a new mortgage of $320,000. What is the amount of the Florida documentary stamp tax on the promissory note?
- A$2,800.00
- B$4,000.00
- C$80.00
- D$1,120.00
Show answer & explanationAnswer & explanation
Correct answer: D. $1,120.00
The Florida documentary stamp tax on a promissory note is calculated at $0.35 per $100, or fraction thereof, of the new mortgage amount. For a $320,000 mortgage, this equals $1,120.00.
Why the other options are wrong
- A. This is incorrect; it might be confused with the doc stamp tax on the deed.
- B. This is incorrect; it might result from using the full purchase price or an incorrect rate.
- C. This is incorrect; it might result from an incorrect rate or calculation.
Florida Doc Stamp Tax on Promissory Notes
A state tax imposed on new or assumed promissory notes (mortgages) in Florida, calculated based on the loan amount.
- Rate is $0.35 per $100 (or fraction thereof) of the mortgage principal.
- Paid by the borrower (buyer) at closing.
- Applies to new mortgages and assumed mortgages.
Memory trick: Don't Forget the Stamps on Your Deeds and Notes!