The Florida Senate
BILL ANALYSIS AND FISCAL IMPACT STATEMENT
(This document is based on the provisions contained in the legislation as of the latest date listed below.)
Prepared By: The Professional Staff of the Committee on Finance and Tax
BILL: CS/CS/SB 1584
INTRODUCER: Finance and Tax Committee; Community Affairs Committee; and Senator Gruters
SUBJECT: Taxation of Real Property Platform Transactions
DATE: April 14, 2021 REVISED:
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Hackett Ryon CA Fav/CS
2. Kim Babin FT Fav/CS
3. AP
Please see Section IX. for Additional Information:
COMMITTEE SUBSTITUTE - Substantial Changes
I. Summary:
CS/CS/SB 1584 limits the documentary stamp tax to the difference between the price the seller
paid and the price the subsequent purchaser paid for a single-family residence or condominium,
if the seller sells the property:
 To an unrelated purchaser in an arm’s length transaction within 75 calendar days after the
date the seller bought the property; and
 For a price that is 110 percent or less than what the seller paid for the property.
The Revenue Estimating Conference has not yet reviewed CS/CS/SB 1584. Staff estimates the
bill will have a significant but indeterminate negative impact on state revenues.
The bill takes effect July 1, 2021.
II. Present Situation:
Documentary Stamp Tax
Chapter 201, F.S., levies an excise tax (called the documentary stamp tax) on documents such as
deeds, stocks and bonds, notes and written obligations to pay money, mortgages, liens, and other
evidences of indebtedness. The Florida Department of Revenue (DOR) administers the
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provisions of that chapter,1 including provisions governing the collection of documentary stamp
taxes, which are distributed each fiscal year to the General Revenue Fund and various other trust
funds.
The DOR classifies the documentary stamp taxes as two taxes imposed on different bases at
different tax rates.2 The first tax rate is 70 cents on each $100 of consideration for deeds,
instruments, or writings whereby lands, tenements, or other real property or interest that are
granted, assigned, transferred, conveyed or vested in a purchaser.3 The second tax rate is 35 cents
per each $100 of consideration, capped at $2,450, for certificates of indebtedness, promissory
notes, wage assignments and retail charge account agreements.4
After certain required payments on debt service on bonds, documentary stamp taxes are
deposited into various trust funds5 including the Land Acquisition Trust Fund, State
Transportation Trust Fund, Grants and Donations Trust Fund, and the State Housing Trust Fund.
All documentary stamp tax revenues, except those which are transferred to the Land Acquisition
Trust Fund in compliance with the Florida Constitution, are subject to an 8 percent service
charge,6 which is transferred to the General Revenue Fund.7 Additionally, the DOR is permitted
to deduct the amount necessary to pay for the cost it incurs in collecting the revenues.
Miami-Dade County is authorized to charge a local surtax on documents except for those
involving the sale or transfer of a single family home.8 The surtax must be used to fund local
affordable housing plans. In Miami-Dade County the documentary stamp tax is 60 cents on each
$100, paid to the state, and a 45 cent per $100 surtax on transactions other than those involving
single family homes, paid to Miami-Dade County.
III. Effect of Proposed Changes:
The bill provides a limitation on the documentary stamp tax to the difference between the price
the seller paid and the price the subsequent purchaser paid for residential property, if the seller
sells the property:
 To an unrelated purchaser in an arm’s length transaction within 75 calendar days after the
date the seller bought the property; and
 For a price that is 110 percent or less than what the seller paid for the property.
The bill defines “residential property” as a property classified as single family or condominium
for property tax assessment purposes, which is a single dwelling unit.
The bill takes effect July 1, 2021.
1
Section 201.11, F.S.
2
Florida Revenue Estimating Conference, 2020 Florida Tax Handbook, at 77 (2020) available at:
http://edr.state.fl.us/Content/revenues/reports/tax-handbook/taxhandbook2020.pdf (last visited April 9, 2021).
3
Id. See also s. 201.02(1), F.S.
4
Id.
5
Section 201.15, F.S.
6
Section 201.15, F.S.
7
Section 215.20, F.S.
8
Section 201.031, F.S.
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IV. Constitutional Issues:
A. Municipality/County Mandates Restrictions:
Not applicable. The bill does not require counties and municipalities to spend funds, limit
their ability to raise revenue, or reduce the percentage of a state tax shared with them.
Therefore, the mandates provisions of Art. VII, s. 18 of the State Constitution do not
apply.
B. Public Records/Open Meetings Issues:
None.
C. Trust Funds Restrictions:
None.
D. State Tax or Fee Increases:
The bill does not create or raise state taxes or fees. Therefore, the requirements of
Art. VII, s. 19 of the State Constitution do not apply.
E. Other Constitutional Issues:
None identified.
V. Fiscal Impact Statement:
A. Tax/Fee Issues:
The Revenue Estimating Conference has not yet reviewed CS/CS/SB 1584. Staff
estimates the bill will have a significant but indeterminate negative impact on state
revenues.
B. Private Sector Impact:
Sellers and purchasers of single-family residences or condominiums whose transactions
meet the bill’s criteria will benefit from reduced documentary stamp taxes.
C. Government Sector Impact:
None.
VI. Technical Deficiencies:
None.
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VII. Related Issues:
 One reading of lines 20-24 is that the tax is calculated by subtracting the seller’s purchase
price from the subsequent purchaser’s purchase price. Adding “The consideration upon
which” at the beginning of line 20 may provide clarification.
 The relating-to clause of the bill on lines 2-3 should be expanded beyond taxation of real
property platform transactions.
VIII. Statutes Affected:
This bill substantially amends section 201.02 of the Florida Statutes.
IX. Additional Information:
A. Committee Substitute – Statement of Substantial Changes:
(Summarizing differences between the Committee Substitute and the prior version of the bill.)
CS by Finance and Tax on April 14, 2021:
The CS:
 Provides that sales by any original purchaser of real property may be eligible, rather
than limiting eligibility to sales by real property platforms and their affiliated groups
of corporations.
 Reduces the timeframe in which the seller must purchase and sell the property from
180 days to 75 days.
 Removes a restriction against the seller using the property for certain purposes while
the seller owns it.
 Defines “residential property” and removes the definitions of “affiliated group of
corporations” and “real property platform.”
CS by Community Affairs on March 30, 2021:
The CS:
 Narrows the term “real property platform” to require it be a publically traded
company;
 Provides that the tax exemption only applies to arm’s length deals for single dwelling
units;
 Provides that the tax exemption applies to sales as well as other forms of property
interest transfer; and
 Otherwise clarifies the exemption without changing the substantive effect of the bill.
B. Amendments:
None.
This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.