12B-4.013: Conveyances Subject to Tax
PURPOSE AND EFFECT: The purpose of amendments to Rule 12B-4.013, F.A.C. (Conveyances Subject to Tax), is to remove provisions from the rule that are not in compliance with the ruling of the Florida Supreme Court in Crescent Miami Center, LLC v. Department of Revenue, 903 So.2d 913 (Fla. 2005). The effect of the removal of subsections (7), (8), and (10) of this rule is to ensure that the Department’s rules conform to existing statutes and this case law.
SUMMARY: The provisions of subsections (7), (8), and (10) of Rule 12B-4.013, F.A.C. (Conveyances Subject to Tax), currently provide that conveyances of real property to corporations and partnerships in exchange for an ownership interest and conveyances of real property by a corporation as payment in lieu of cash dividends or transferred in corporate dissolutions or corporate liquidations are subject to the documentary stamp tax. The proposed amendments remove these provisions that are not in compliance with the ruling rendered in Crescent Miami Center, LLC v. Department of Revenue.
SUMMARY OF ESTIMATED REGULATORY COSTS: No Statement of Estimated Regulatory Cost was prepared.
Any person who wishes to provide information regarding a statement of estimated regulatory costs, or provide a proposal for a lower cost regulatory alternative must do so in writing within 21 days of this notice.
SPECIFIC AUTHORITY: 201.11, 213.06(1) FS.
LAW IMPLEMENTED: 201.01, 201.02 FS.
A HEARING WILL BE HELD AT THE TIME, DATE AND PLACE SHOWN BELOW:
TIME AND DATE: January 3, 2007, 10:00 a.m.
PLACE: Room 118, Carlton Building, 501 S. Calhoun Street, Tallahassee, Florida
Pursuant to the provisions of the Americans with Disabilities Act, any person requiring special accommodations to participate in this workshop/meeting is asked to advise the agency at least 48 hours before the workshop/meeting by contacting: Larry Green at (850)922-4830. If you are hearing or speech impaired, please contact the agency using the Florida Relay Service, 1(800)955-8771 (TDD) or 1(800)955-8770 (Voice).
THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Joe Parramore, Revenue Program Administrator I, Technical Assistance and Dispute Resolution, Department of Revenue, P.O. Box 7443, Tallahassee, Florida 32314-7443, telephone (850)922-4709.
THE FULL TEXT OF THE PROPOSED RULE IS:
12B-4.013 Conveyances Subject to Tax.
(1) through (6) No change.
(7) Corporation: A conveyance of realty to a corporation in exchange for shares of its capital stock, or as a contribution to the capital of a corporation, is subject to tax. There is a presumption that the consideration is equal to the fair market value of the real property interest being transferred.
(8) Corporation Dividends, Dissolution, Liquidation: A conveyance of real property by a corporation to its stockholders in lieu of a cash or stock dividend, or for the surrender or retirement of the corporate stock, is taxable. There is the presumption that the consideration is equal to the fair market value of the real property interest being transferred.
(7)(9) No change.
(10) Partnerships: A conveyance of real property by a partner in exchange for an interest in a partnership, or where the value of the partner’s interest in the partnership is increased by the conveyance, is taxable. There is the presumption that the consideration is equal to the fair market value of the real property interest being transferred. This presumption for consideration is also applicable for transfers of real property from a partnership to a partner, except as otherwise provided in Section 201.02(5), F.S.
(11) through (32) renumbered (8) through (29) No change.
Specific Authority 201.11, 213.06(1) FS. Law Implemented 201.01, 201.02 FS. History–Revised 8-18-73, Formerly 12A-4.13, Amended 12-11-74, 2-21-77, 5-23-77, 12-26-77, 7-3-79, 9-16-79, 11-29-79, 3-27-80, 12-23-80, 12-30-82, Formerly 12B-4.13, Amended 12-5-89, 6-4-90, 2-13-91, 2-16-93, 10-18-94, 12-30-97, 7-28-98, 1-4-01, 5-4-03,__________.