HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 5401 PCB ANR 21-01 Documentary Stamp Tax Distributions
SPONSOR(S): Agriculture & Natural Resources Appropriations Subcommittee, Tomkow
TIED BILLS: CS/HB 7019, HB 7021 IDEN./SIM. BILLS:
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
Orig. Comm.: Agriculture & Natural Resources 9 Y, 5 N White Pigott
Appropriations Subcommittee
1) Appropriations Committee 19 Y, 10 N White Pridgeon
SUMMARY ANALYSIS
The bill conforms to funding decisions made in the Fiscal Year 2021-22 Proposed General Appropriations Act.
The bill revises documentary stamp tax distributions as follows:
Reduces the distributions paid into the State Housing Trust Fund and Local Government Housing Trust
Fund from a combined 24.17 percent to a combined 6.84519 percent and removes the required $75
million annual transfer to the State Economic Enhancement and Development Trust Fund.
Creates a distribution of 6.84519 percent to be paid into the Resilient Florida Trust Fund to be used for
lawful purposes of the trust fund, including planning and project grants.
Creates a distribution of 6.84519 percent to be paid into the Water Protection and Sustainability
Program Trust Fund to be used for wastewater grants.
Creates a direct distribution of $75 million to the State Economic Enhancement and Development Trust
Fund.
Revises the distribution to the State Transportation Trust Fund by eliminating the required $75 million
transfer to the General Revenue Fund and recalculating the minimum distribution levels to the State
Transportation Trust Fund to reflect the elimination of the transfer.
The bill prohibits the funds distributed to the State Housing Trust Fund and the Local Government Housing
Trust Fund from being transferred to the General Revenue Fund in the General Appropriations Act. The bill
also reenacts statutes related to the housing distributions to incorporate the changes to the documentary
stamp tax distributions provided in the bill.
The bill expands the use of the Water Protection and Sustainability Program Trust Fund to include the
wastewater grant program authorized in section 403.0673, Florida Statutes.
The effective date of the bill is contingent upon House Bill 7019, relating to statewide flooding and sea level
rise resilience, and House Bill 7021, relating to the Resilient Florida Trust Fund/the Department of
Environmental Protection (DEP), or similar legislation taking effect.
See FISCAL COMMENTS for estimated distributions resulting from the changes proposed in the bill.
This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h5401a.APC
DATE: 3/31/2021
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Background
Documentary Stamp Tax
The documentary stamp tax imposes an excise tax on deeds or other documents relating to real property
or interests in real property.1 The tax comprises two taxes imposed on different bases at different tax rates:
1. The tax on deeds and other documents granting, assigning, or transferring ownership (including
fractional ownership) of real property is $0.70 per $100 of consideration or fractional part of $100 of
consideration.2
2. The tax on certificates of indebtedness, promissory notes, wage assignments, and retail charge
account agreements is $0.35 per $100 of consideration.3
Revenue collected from the documentary stamp tax is divided between the General Revenue Fund and
various trust funds according to the following statutory formula.4
Of total collections, the Department of Revenue deducts amounts necessary to pay for collection
and enforcement of the tax.
From the amount remaining after the preceding deduction, 33 percent is distributed to the Land
Acquisition Trust Fund.
From the amount remaining after the two preceding deductions, an 8 percent service charge is paid
to the General Revenue Fund.
After the deductions listed above, the remainder of taxes collected is distributed as follows:
State Transportation Trust Fund – lesser of 24.18442 percent or $541.75 million, minus $75 million
that is transferred to the General Revenue Fund.
Grants and Donations Trust Fund in the Department of Economic Opportunity – lesser of 0.1456
percent or $3.25 million.
State Housing and Local Government Housing Trust Funds – 24.17 percent, minus $75 million that
is transferred to the State Economic Enhancement and Development Trust Fund in the Department
of Economic Opportunity.
General Inspection Trust Fund in the Department of Agriculture & Consumer Services – lesser of
0.017 percent or $300,000.
General Revenue Fund – any remaining taxes after all other distributions.
State Housing and Local Government Housing Trust Funds
The State Housing Trust Fund5 and the Local Government Housing Trust Fund6 are administered by the
Florida Housing Finance Corporation (FHFC),7 which is a public corporation of the State of Florida that is
housed within the Department of Economic Opportunity (DEO). The FHFC administers both federal and
state resources to finance the development and preservation of affordable homeowner and rental housing
and to assist homebuyers with financing and down payment assistance. State funding for affordable
housing programs is provided from documentary stamp tax revenues that are distributed to the State
1 Chapter 201, F.S.
2 Section 201.02, F.S.
3 Sections 201.07 and 201.08, F.S.
4 Section 201.15, F.S.
5 Section 420.0005, F.S.
6 Section 420.9079, F.S.
7 Section 420.504, F.S.
STORAGE NAME: h5401a.APC PAGE: 2
DATE: 3/31/2021
Housing Trust Fund and the Local Government Housing Trust Fund. The FHFC is also authorized to
receive federal funding directly from the federal government for its housing programs; these funds are
deposited outside of the State Treasury.8 In 2020, the FHFC received $789.5 million in federal funds.9
In the early years of operation, the FHFC accessed only federal resources to finance housing initiatives. To
leverage and augment these programs, the Florida Legislature began appropriating additional funding for
state programs in the late 1980s. However, it was the enactment of the William E. Sadowski Affordable
Housing Act in 1992 that created a source of revenue for affordable housing from a portion of documentary
stamp taxes on the transfer of real estate.10
From Fiscal Year 1992-93 to Fiscal Year 2005-06, the annual revenue generated from the documentary
stamp tax increased 535 percent, growing from $639 million to over $4 billion as Florida experienced a
housing boom.11 Documentary stamp tax revenues distributed to the housing trust funds also grew
exponentially, increasing from $40.8 million in Fiscal Year 1992-93 to over $600 million in Fiscal Year
2005-06.12 The 2005 Legislature adopted a cap, effective July 1, 2007, that limited the annual distributions
to the housing trust funds to $243 million per year, with a mechanism for a small increase over time.13
Following the collapse of the housing market, documentary stamp tax revenues decreased significantly
each year, bottoming out at just over $1 billion in Fiscal Year 2009-10.14 Likewise, the distributions to the
housing trust funds decreased to $159 million in Fiscal Year 2009-10.15
The 2011 Legislature removed the cap on annual distributions to the housing trust funds, but created a new
annual requirement starting July 1, 2012, providing that the first $75 million in documentary stamp tax
collections credited to the housing trust funds be automatically transferred to the newly created State
Economic Enhancement and Development Trust Fund within DEO.16 Since the start of Florida’s economic
recovery in Fiscal Year 2012-13, documentary stamp tax revenues and the distributions to the housing
trust funds have grown rapidly, outpacing annual growth in both the consumer price index and Florida’s
population.17
Each year as part of the budget process, the Legislature determines the use of the revenues in the housing
trust fund. The chart on the following page shows a five-year history of documentary stamp tax revenues
distributed to the housing trust funds and the authorized uses of those revenues.
8 Section 420.507, F.S.
9 Information provided by the Florida Housing Finance Corporation on Federal Funding Resources is on file with the
Appropriations Committee.
10 Chapter 92-317, Laws of Fla.
11 Long-Term Revenue Analysis (vol. 36), pp. 47-48. Florida Revenue Estimating Conference. Available at
http://edr.state.fl.us/Content/conferences/longtermrevenue/2020longtermrevenueanalysis.pdf.
12 Documentary Stamp Tax Conference Results. Florida Revenue Estimating Conference. Available at
http://edr.state.fl.us/Content/conferences/docstamp/index.cfm.
13 Chapter 2005-92, Laws of Fla.
14 See supra note 10.
15 2011 Florida Tax Handbook, p. 70. Florida Revenue Estimating Conference. Available at
http://edr.state.fl.us/Content/revenues/reports/tax-handbook/taxhandbook2011.pdf
16 Chapters 2011-189 and 2011-142, Laws of Fla.
17 See supra notes 10 and 11.
STORAGE NAME: h5401a.APC PAGE: 3
DATE: 3/31/2021
REVENUE DISTRIBUTIONS FROM DOCUMENTARY STAMP TAX
FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21
Local Gov't Housing TF $197,319,930 $208,356,854 $221,115,328 $244,752,930 $284,700,000
State Housing TF $84,254,822 $88,971,199 $94,423,240 $104,524,227 $121,600,000
$ 281,574,752 $ 297,328,053 $ 315,538,568 $ 349,277,157 $ 406,300,000
APPROPRIATIONS
FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-2118
Local Gov't Housing TF $ 135,500,000 $ 109,000,000 $ 86,840,000 $ 111,560,000 $ 30,000,000
State Housing TF $ 64,600,000 $ 28,000,000 $ 36,790,000 $ 81,040,000 $ 115,000,000
$ 200,100,000 $ 137,000,000 $ 123,630,000 $ 192,600,000 $ 145,000,000
SWEEPS
FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21
Local Gov't Housing TF $ 86,500,000 $ 95,130,000 $ 127,400,000 $ 115,000,000 $ -
State Housing TF $ 30,414,438 $ 59,270,000 $ 54,600,000 $ 10,000,000 $ -
$ 116,914,438 $ 154,400,000 $ 182,000,000 $ 125,000,000 $ -
Water Protection and Sustainability Program Trust Fund
The Water Protection and Sustainability Program Trust Fund in the Department of Environmental
Protection (DEP) was created by the 2005 Legislature to implement the Water Protection and Sustainability
Program, which includes the alternative water supply program and the water storage facility revolving loan
fund.19 The trust fund initially received annual distributions of $100 million from the documentary stamp
tax.20 However, in 2008, the Legislature reduced the distribution to a maximum of $80 million each year.21
The 2009 Legislature eliminated the annual distribution to this trust fund and redirected those revenues to
the General Revenue Fund.22 Current revenues in the trust fund consist of interest earnings on cash
remaining in the trust fund to support prior years’ surface water improvement and alternative water supply
projects.
Wastewater Grant Program
The 2020 Legislature created the Wastewater Grant Program within the DEP to provide grants for projects
that reduce excess nutrient pollution.23 The program is subject to appropriation and requires a 50 percent
local match of funds.24 Eligible projects include:
Projects to retrofit onsite sewage treatment and disposal systems to upgrade such systems to
enhanced nutrient-reducing onsite sewage treatment and disposal systems.
Projects to construct, upgrade, or expand facilities to provide advanced waste treatment.
Projects to connect onsite sewage treatment and disposal systems to central sewer facilities.
18 The Conference Report on the Fiscal Year 2020-21 General Appropriations Act provided a total appropriation of $255
million from the Local Government Housing Trust Fund. The Governor vetoed $225 million of the appropriation and
replaced state funds with federal Coronavirus Relief Funds. See Specific Appropriation 2282 of Chapter 2020-111, Laws
of Fla.
19 Chapter 2005-289, Laws of Fla.
20 Chapter 2005-290, Laws of Fla.
21 Chapter 2008-114, Laws of Fla.
22 Chapter 2009-68, Laws of Fla.
23 Chapter 2020-150, Laws of Fla.
24 Section 403.0673, F.S. Subsection (3) allows the DEP to waive the local match rural areas of opportunity.
STORAGE NAME: h5401a.APC PAGE: 4
DATE: 3/31/2021
The Fiscal Year 2020-21 General Appropriations Act included $25 million from the General Revenue Fund
for this program.25
Resilient Florida Trust Fund
The Resilient Florida Trust Fund does not currently exist in law. House Bill 7021 (2021) creates the
Resilient Florida Trust Fund within the DEP and specifies that moneys deposited in the trust fund are
available as a funding source for the Resilient Florida Grant Program and the Statewide Flooding and Sea
Level Rise Resilience Plan, including costs to operate the grant program, to develop the plan, and to
provide grants to regional resilience coalitions. House Bill 7021 (2021) also authorizes DEP to use moneys
deposited in the trust fund for administrative and operational costs of the Florida Flood Hub for Applied
Research and Innovation and coastal resilience initiatives.
Resilient Florida Grant Program
The Resilient Florida Grant Program does not currently exist in law. House Bill 7019 (2021) creates the
Resilient Florida Grant Program, which authorizes the DEP to provide grants to local governments to fund
the costs for community resilience planning to prepare for threats from flooding and sea level rise. House
Bill 7019 (2021) also requires DEP to annually develop a three-year Statewide Flooding and Sea Level
Rise Resilience Plan, to be submitted to the Governor and the Legislature, that consists of ranked projects
that address risks of flooding and sea level rise to coastal and inland communities.
In addition, House Bill 7019 (2021) creates the Florida Flood Hub for Applied Research and Innovation
within the University of South Florida College of Marine Science. The hub must organize existing data
needs, coordinate research funds, establish community-based programs to improve flood monitoring and
prediction, and develop opportunities to partner with other flood and sea level rise research and innovation
leaders. Lastly, House Bill 7019 (2021) authorizes counties and municipalities to enter into agreements to
form regional resilience coalitions for the purpose of planning for the resilience needs of communities and
coordinating intergovernmental solutions to mitigate adverse impacts of flooding and sea level rise.
Effect of the Bill
The bill revises documentary stamp tax distributions as follows:
1. Reduces the distributions to the State Housing Trust Fund and Local Government Housing Trust
Fund from a combined 24.17 percent to a combined 6.84519 percent and removes the required $75
million annual transfer to the State Economic Enhancement and Development Trust Fund.
2. Creates a distribution of 6.84519 percent to be paid into the Resilient Florida Trust Fund to be used
for lawful purposes of the trust fund, including planning and project grants.
3. Creates a distribution of 6.84519 percent to be paid into the Water Protection and Sustainability
Program Trust Fund to be used for wastewater grants as specified in section 403.0673, Florida
Statutes.
4. Creates a direct distribution of $75 million to the State Economic Enhancement and Development
Trust Fund.
5. Revises the distribution to the State Transportation Trust Fund by eliminating the required $75
million transfer to the General Revenue Fund and recalculating the minimum distribution levels to
the State Transportation Trust Fund to reflect the elimination of the transfer.
The bill prohibits the transfer of funds distributed to the State Housing Trust Fund and the Local
Government Housing Trust Fund from being transferred to the General Revenue Fund in the General
25 Specific Appropriation 1641, Chapter 2020-111, Laws of Fla.
STORAGE NAME: h5401a.APC PAGE: 5
DATE: 3/31/2021
Appropriations Act. The bill also reenacts statutes related to the housing distributions to incorporate the
changes to the documentary stamp tax distributions provided in