Florida Intangible Tax Change


**Please make note of this Ernst Lookup Change if you close files in Florida.  If you do not close files in Florida, this does not apply. *** 

In response to user concerns and apparent inconsistencies between county practices and state law, Ernst’s Data Research Team contacted the Florida Dept. of Finance and numerous counties in order to determine how jurisdictions define new money and impose Intangible Tax on refinance and mortgage modification transactions.  

We found that there are widespread discrepancies between and within jurisdictions about how they define new money and do, or do not, apply exemptions.  

Therefore, in order to better align our calculator with the local practice, protect our users from shortfalls, while still providing desired functionality, we have made the following changes in Florida.     

  • Will no longer use the question “Intangible Tax: Is the debt to be refinanced with the same lender or assignee of that debt?” It has been removed.
  • Added a new question (Q3):  Does the new money Intangible Tax exemption for mortgage modifications and refinances apply to this transaction?
  • Added a new field (V8):   What is the amount of the taxable new money associated with this transaction?
  • BOTH (Q3) and (V8) apply to Mortgage Refinance and Modification transactions

The calculation for a new mortgage IS NOT changing, ONLY the mortgage refinance/modification is changing. 

The new calculation for a refinance or calculation will work as follows: 

  • Users must still answer “Mortgage Tax: Is the refinanced debt a modification of the original debt instrument?”  YES and provide the New Mortgage Amount and both the Original Debt Amount and Unpaid Principal Balance

           -This will calculate mortgage and intangible tax as we always have BUT without the need for the question about Intangible Tax. 

  • IF users answer (Q3) YES and provide a value greater than $0 for V8

            -The intangible tax will be calculated on the value in V8

             -Mortgage Tax will continue to be calculated as it has been 

  • IF users answer (Q3) YES AND DO NOT provide a value greater than $0 for V8

            -Intangible tax WILL NOT be calculated

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