Who Pays Intangible Tax in Florida

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Who Pays Intangible Tax in Florida?

In the state of Florida, individuals and businesses are required to pay intangible tax on certain types of assets and financial transactions. Intangible tax is levied on intangible personal property, which includes assets that have value but do not have a physical form. This tax applies to various financial instruments and transactions, such as stocks, bonds, mutual funds, and promissory notes.

The responsibility for paying intangible tax in Florida can vary depending on the type of asset or transaction involved. In some cases, the tax is typically paid by the seller or issuer of the asset, while in other cases it may be the responsibility of the buyer or recipient.

Here are 8 frequently asked questions about who pays intangible tax in Florida:

1. What assets are subject to intangible tax in Florida?
Assets subject to intangible tax in Florida include stocks, bonds, mutual funds, money market funds, promissory notes, and certain other financial instruments.

2. Who pays intangible tax on the sale of stocks or bonds?
In most cases, the seller of stocks or bonds is responsible for paying the intangible tax in Florida. The tax rate is typically 0.002% of the gross sales price.

3. Who pays intangible tax on the purchase of stocks or bonds?
In general, the buyer of stocks or bonds is not responsible for paying intangible tax in Florida. However, they may be required to pay documentary stamp tax on the transaction.

4. Who pays intangible tax on mutual funds?
The owner of the mutual fund shares is responsible for paying intangible tax in Florida. The tax rate is 0.10% of the net asset value of the shares.

5. Who pays intangible tax on promissory notes?
The borrower or issuer of the promissory note is responsible for paying intangible tax in Florida. The tax rate is 0.002% of the face value of the note.

6. Who pays intangible tax on the transfer of ownership of a business?
In most cases, the buyer of a business is responsible for paying the intangible tax in Florida. The tax rate is typically 0.002% of the purchase price.

7. Who pays intangible tax on loans or mortgages?
The borrower or mortgagor is generally responsible for paying intangible tax in Florida. The tax rate is 0.002% of the face value of the loan or mortgage.

8. Who pays intangible tax on the transfer of stocks or bonds as a gift?
In the case of a gift of stocks or bonds, the donor is responsible for paying the intangible tax in Florida. The tax rate is typically 0.002% of the fair market value of the assets at the time of the gift.

In conclusion, the responsibility for paying intangible tax in Florida depends on the type of asset or transaction involved. It is important for individuals and businesses to understand their obligations and consult with a tax professional if they have any questions or concerns about intangible tax in the state.
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