Florida intangible tax can sit on loan papers

Some Florida loan papers have a tax line that is easy to mix up with the other charges.

Nonrecurring intangible tax can come up when a written promise to pay money is tied to a mortgage or lien on Florida real property. The state rate is 2 mills. In plain math, the secured amount is multiplied by 0.002. The lender is the taxpayer for this tax, but the cost may be passed to the borrower.

This can show up with a home loan, refinance, credit line, private loan, or business deal tied to Florida land or a Florida building. Most of the time, the tax is handled when the note or mortgage is recorded. Some situations are paid straight to Florida Revenue instead, including certain papers that are not recorded right away.

Before signing, ask the lender or closing agent to point out the intangible tax line. Ask what amount was used and how the payment will be handled. If more than one property backs the debt, or if some property sits outside Florida, ask how the Florida part was figured.

It is a small-looking line that is easier to understand before closing day.