12C-2.004. Property Subject to Tax - Government Leasehold Estates and Nonrecurring.

(1) Tax on Governmental Leasehold Estates – All leases of government-owned property are subject to an annual tax if rental payments are due as consideration for the lease, unless the lessee serves or performs a governmental, municipal, or public purpose or function as defined in Section 196.012, F.S.

(2)(a) A nonrecurring tax is imposed at the rate of $2.00 per thousand dollars (2 mills) of the value of a note or other obligation for payment of money that is secured by a mortgage, deed of trust, or other lien on Florida real property.

(b) The following are examples of property subject to the nonrecurring tax:

1. Agreements or contracts for deed.

2. Agreements not to encumber real property if the agreement attaches as a lien on the real property.

3. Future Advances – to the extent secured by a lien on Florida real property.

4. Line of Credit – to the extent secured by a lien on Florida real property, as described in Section 199.143, F.S.

(c) Example: Note and mortgage given to secure loan with a principal amount of $1,000,000.

Tax computation:

	Principal	$1,000,000.00
	Tax rate	x .002 ____________
	Tax due	$2,000.00

(3)(a) Where a note, bond or other obligation for the payment of money is secured by realty located both inside and outside of the state and by personal property located both inside and outside of the state, the nonrecurring tax is required to be apportioned based on each type of property’s relative percentage of the principal amount of debt at the time the obligation is created.

(b) Example: Note and mortgage given to secure a loan of $1,000,000. The mortgage includes real property located in and out of Florida as well as personal property located in and out of Florida.

Security	Value	Percentage	Tax
Value of Florida Real Property	$250,000.00	25%	$500.00(*)
Value of NonFlorida Real Property	250,000.00	25%	– 0 –
Total Value of All Real Property	500,000.00	50%	N/A
Value of Florida Personal Property	250,000.00	25%	0(**)
Value of NonFlorida Personal Property	250,000.00	25%	0(**)
Total Value of All Personal Property	500,000.00	50%	0(**)
Total Collateral	$1,000,000.00	100%

(*) Nonrecurring 2 mill tax

(**) There is no tax on personal property.

(4)(a) Where the value of real property pledged to secure an obligation is less than the balance of the obligation, the amount of the obligation secured by the value of Florida real property is subject to the nonrecurring tax.

(b) Example:

Principal Amount of Loan	$1,000,000.00
Less Value of Florida Real Property Amount subject to nonrecurring tax		-500,000.00 $   500,000.00

Rulemaking Authority 199.202, 213.06(1) FS. Law Implemented 196.199(2)(a), (b), 199.133, 199.135 (2005), 199.143, 199.145, 199.155, 199.183 FS. History–New 4-17-72, Amended 12-20-73, 5-8-79, Formerly 12C-2.04, Amended 11-21-91, 5-18-93, 10-9-01, 1-28-08, 1-17-13.