T/M #07-08
April 5, 2007
TRANSMITTAL MEMORANDUM
DEPARTMENT OF REVENUE RULES
PURPOSE:
This transmittal memorandum contains instructions for filing updated material for Department of Revenue Rules.
CONTENTS:
Documentary Stamp Tax Rules
RULE NUMBER: RULE TITLE:
12B-4.013 Conveyances Subject to Tax
SUMMARY:
The amendments to Rule 12B-4.013, F.A.C. (Conveyances Subject to Tax), is to remove provisions from the rule that are not in compliance with the ruling of the Florida Supreme Court in Crescent Miami Center, LLC v. Department of Revenue, 903 So.2d 913 (Fla. 2005). The effect of the removal of subsections (7), (8), and (10) of this rule is to ensure that the Department’s rules conform to existing statutes and this case law.
FORMS AFFECTED:
NONE
EFFECTIVE APRIL 5, 2007
STATE OF FLORIDA
DEPARTMENT OF REVENUE
CHAPTER 12B-4, FLORIDA ADMINISTRATIVE CODE
DOCUMENTARY STAMP TAX
PART II DEEDS-DOCUMENTARY STAMP TAX AND SURTAX
AMENDING RULE 12B-4.013
12B-4.013 Conveyances Subject to Tax.
(1) through (6) No change.
(7) Corporation: A conveyance of realty to a corporation in exchange for shares of its capital stock, or as a contribution to the capital of a corporation, is subject to tax. There is a presumption that the consideration is equal to the fair market value of the real property interest being transferred.
(8) Corporation Dividends, Dissolution, Liquidation: A conveyance of real property by a corporation to its stockholders in lieu of a cash or stock dividend, or for the surrender or retirement of the corporate stock, is taxable. There is the presumption that the consideration is equal to the fair market value of the real property interest being transferred.
(7)(9) No change.
(10) Partnerships: A conveyance of real property by a partner in exchange for an interest in a partnership, or where the value of the partner’s interest in the partnership is increased by the conveyance, is taxable. There is the presumption that the consideration is equal to the fair market value of the real property interest being transferred. This presumption for consideration is also applicable for transfers of real property from a partnership to a partner, except as otherwise provided in Section 201.02(5), F.S.
(11) through (32) Renumbered (8) through (29) No change.
Specific Authority 201.11, 213.06(1) FS. Law Implemented 201.01, 201.02 FS. History–Revised 8-18-73, Formerly 12A-4.13, Amended 12-11-74, 2-21-77, 5-23-77, 12-26-77, 7-3-79, 9-16-79, 11-29-79, 3-27-80, 12-23-80, 12-30-82, Formerly 12B-4.13, Amended 12-5-89, 6-4-90, 2-13-91, 2-16-93, 10-18-94, 12-30-97, 7-28-98, 1-4-01, 5-4-03, 4-5-07.