Florida Department of Revenue and Doc Stamps Tax
The Florida Department of Revenue has recently clarified the wording of a law regarding documentary stamp taxes that will now make short sales a bit easier for home sellers to actually sell their homes. Because the law was unclear, many title companies closing short sale properties were collecting the documentary stamps on the deed at the taxable market value listed with the county tax collector’s information on a home located within that county and not the actual sales price. Because of the shortfall between the taxable value and the sales price most title companies needed to cover any potential problems for the new purchaser so the tax collector wouldn’t go after the new owner for the short fall in the documentary stamp tax. The Florida Department of Revenue has made an official statement saying the amount paid for the interest in Florida real property is consideration and subject to tax.
Link to the actual letter from the Florida Department of Revenue. Doc Stamp Tax on Short Sales PDF