Page 63 - Akerman | 2016 Guide to Doing Business in Florida

5.2.4 Income Tax on Corporations

Florida’s income tax is applicable to subchapter C corporations only, at a rate of 5.5% of the
Florida tax base. The Florida tax base is calculated based upon an allocable portion of the
corporation’s Federal income tax base.

Partnerships, S corporations and limited liability companies are exempt unless a Federal
subchapter C corporate election is in place, however, owners of such pass through entities
who are subchapter C corporations are subject to Florida corporate income tax if the pass
through entity does business in Florida or owns property in Florida.
5.2.5 Ad Valorem Property Tax

Unless expressly exempted, all real property and all personal property used for business
purposes in Florida are subject to ad valorem taxation. With limited exceptions, any claim for
exemption must be filed with county property appraiser on or before March 1 of the year.

For further discussion on ad valorem property taxes in the context of real estate transactions,
see Section 9.4.4 of this Guide [Ad Valorem Real Estate Taxes].

5.2.6 Documentary Stamp Tax/Transfer Tax

Excise taxes, commonly referred to as “Stamp Taxes,” are imposed on the following:
a. Deeds, instruments, or other writings whereby any real property or any interest
therein is transferred 70¢ on each $100 of consideration therefor ($1.05 on
each $100 in Miami-Dade County). For purposes of computing the
documentary stamp tax, consideration generally includes any debt to which
the real estate is subject. The documentary stamp tax also applies to certain
transfers of interests in legal entities (such as limited liability companies) used
as conduits to transfer Florida real estate;

b. Promissory notes, nonnegotiable notes, written obligations to pay executed or
delivered in Florida and on renewals thereof, 35¢ per $100 of obligation, not
to exceed $2,450 when not secured by a mortgage or security interest filed
or recorded in Florida; and

c. Filed or recorded mortgages, trust deeds, security agreements, or other
evidences of indebtedness and for each renewal of same, stamp tax of 35¢
on each $100 of indebtedness or obligation evidenced thereby. There is no
cap on the documentary stamp tax applied on these instruments. When a
mortgage is recorded, the tax is on the mortgage, not the note.

Mortgages are also subject to an 0.2% assessment of nonrecurring intangible tax.

Apportionment may apply if taxable obligations are also secured by out-of-state real property or
personal property.

For further discussion on Documentary Stamp Taxes in the context of real estate transactions,
see Section 9.4.3 of this Guide [Documentary Stamp Taxes].

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