Notice of Proposed Rule

DEPARTMENT OF REVENUE
Miscellaneous Tax
RULE NO: RULE TITLE
12B-4.014: Conveyances Not Subject to Tax
PURPOSE AND EFFECT: The purpose of the proposed amendments to Rule 12B-4.014, Florida Administrative Code (F.A.C.) (Conveyances Not Subject to Tax), is to remove the provision stating that a corrective deed is subject to minimum documentary stamp tax only if tax was paid on the original deed. This provision was determined by the circuit court in 46th Avenue Properties, Inc. v. Department of Revenue (6th Judicial Circuit, Case No. 01-9177 C1-19, Feb. 2, 2003) to be without authority. The effect of repealing this subsection is that when a corrective deed is filed, and tax was not correctly paid on the original deed, no additional tax is due on the corrective deed. Instead, tax remains due on the original deed.
SUMMARY: The amendments to Rule 12B-4.014, F.A.C. (Conveyances Not Subject to Tax), remove the provision stating that a deed filed to correct an error in a prior deed is subject to minimum documentary stamp tax only if the tax was paid on the original deed.
SUMMARY OF STATEMENT 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: 201.022, 201.02 FS.
A HEARING WILL BE HELD AT THE DATE, TIME AND PLACE SHOWN BELOW:
DATE AND TIME: February 20, 2008, 9:00 a.m.
PLACE: Room 118, Carlton Building, 501 South 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: Tim Phillips, Tax Law Specialist, Technical Assistance and Dispute Resolution, Department of Revenue, P. O. Box 7443, Tallahassee, Florida 32314-7443, telephone (850)922-4724

THE FULL TEXT OF THE PROPOSED RULE IS:

12B-4.014 Conveyances Not Subject to Tax.

(1) through (2) No change.

(3) To Correct Error: Where a conveyance is made to correct a deficiency in a previous deed on which the tax has been paid, only minimum tax is required. (1933 Op. Att’y. Gen. Fla. 1933-34 Biennial Report, Page 50 (April 7, 1933); Letter from the Att’y. Gen. Fla. to State Comptroller (Dec. 10, 1962)).

(4) through (15) renumbered (3) through (14) No change.

Specific Authority 201.11, 213.06(1) FS. Law Implemented 201.01, 201.02 FS. History–Revised 8-18-73, Formerly 12A-4.14, Amended 2-21-77, 12-26-77, 12-23-80, Formerly 12B-4.14, Amended 12-5-89, 6-4-90, 2-13-91, 2-16-93, 10-18-94, 12-30-97, 1-4-01,_________.


NAME OF PERSON ORIGINATING PROPOSED RULE: Tim Phillips, Tax Law Specialist, Technical Assistance and Dispute Resolution, Department of Revenue, P. O. Box 7443, Tallahassee, Florida 32314-7443, telephone (850)922-4724
NAME OF SUPERVISOR OR PERSON WHO APPROVED THE PROPOSED RULE: Buzz McKown, Revenue Program Administrator II, Technical Assistance and Dispute Resolution, P. O. Box 7443, Tallahassee, Florida 32314-7443, telephone number (850)922-4721
DATE PROPOSED RULE APPROVED BY AGENCY HEAD: January 15, 2008
DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAW: The proposed amendments to Rule 12B-4.014, Florida Administrative Code (Conveyances Not Subject to Tax), were noticed in the Florida Administrative Weekly on September 21, 2007 (Vol. 33, No. 38, p. 4320). A rule development workshop was held on October 8, 2007. No one appeared to provide comment regarding these proposed rule changes. No written comments have been received by the Department.