What tax is levied on all new loans and assumed loans in Florida?

The documentary stamp tax is a specific tax levied on certain documents that are executed, delivered, or recorded in Florida, including new loans and assumed loans. This tax is calculated based on the total amount of the loan or the consideration involved in the transaction. The purpose of the documentary stamp tax is to generate revenue for state and local governments, and it is a common aspect of real estate transactions.

Understanding this tax is crucial for real estate professionals in Florida, as it directly affects the costs associated with transactions. Each loan, whether newly created or assumed from a previous borrower, is subject to this tax, which needs to be considered by both buyers and sellers during a transaction.

Other options, such as income tax, sales tax, and property tax, do not apply in this context. Income tax typically relates to earnings rather than specific transactions in real estate. Sales tax generally applies to the sale of goods and services but is not directly associated with the financing of real estate. Property tax is an ad valorem tax based on the assessed value of real estate, but it is separate from the loan transaction itself.