Question

Linda purchases property in Escambia County from Susan. Linda has $30,000.00 as a down payment and gets a mortgage in the amount of $150,000.00 and there is no other consideration for the transfer. How much will the doc stamp tax on the deed be?

Answer 1

$1,260

Step-by-step explanation:

First of all, Linda's base for any taxes will be the total transaction cost = $30,000 + $150,000 = $180,000

The we must calculate the $100 taxable units = $180,000 / $100 = 1,800 units

Since Escambia County is located in Florida, we must use Florida's documentary stamp tax of $0.70 per taxable unit (floridarevenue.com):

doc tax due = 1,800 taxable units x $0.60 per taxable unit = $1,260