Nonrecurring Intangible Tax
Chapter 199, Florida Statutes (F.S.), imposes nonrecurring intangible tax on obligations to pay money to the extent the obligation is secured by a
mortgage or lien on Florida real property. The tax is due even if the mortgage or lien is not recorded or filed in Florida. In no event will the
tax be calculated on an amount greater than the fair market value of the collateralized Florida real property.
The tax is due only to the extent the obligation is secured by Florida real property. Thus, if Florida real property and other properties secure
an indebtedness, with neither property required to be looked to first for collection, the tax may be prorated.
The lender is the taxpayer for the nonrecurring intangible tax. The nonrecurring intangible tax is paid at the time the mortgage is filed or
recorded in Florida. If the mortgage is not recorded within 30 days of the date the obligation is secured by the mortgage, the tax payment
is to be made directly to the Florida Department of Revenue. Any tax payment made directly to the Department is delinquent after the 30th day following the date the
obligation is secured by the Florida real property.
Generally, only unconditional obligations to pay money are subject to the tax. However, pursuant to section 199.143(3), F.S., a
line of credit obligation is also subject to the nonrecurring intangible tax to the extent secured by a mortgage on Florida real property.
Once the tax has been paid on the full amount of the line of credit, no additional tax is due.
