- Calculate Deed Tax as \(\lceil \frac{285,900}{100} \rceil \times 0.70 = \$2,001.30\).
- Calculate Note Tax as \((\lceil \frac{157,310}{100} \rceil + \lceil \frac{100,000}{100} \rceil) \times 0.35 = \$900.90\).
- Calculate Intangible Tax as \(100,000 \times 0.002 = \$200.00\).
- The total tax is \(\$2,001.30 + \$900.90 + \$200.00 = \boxed{\$3,102.20}\).
Explanation
- Problem Analysis and Data Overview
To determine the total documentary stamp taxes and intangible taxes for the property transaction in Leon County, Florida, we need to calculate three distinct taxes based on the provided financial data.
- Purchase Price (Consideration for Deed): \(\$285,900\)
- Recorded First Mortgage (assumed): \(\$157,310\)
- Second Mortgage (new): \(\$100,000\)
Florida tax regulations require us to calculate:
- Documentary Stamp Tax on the Deed.
- Documentary Stamp Tax on the promissory notes (mortgages).
- Intangible Personal Property Tax on new mortgages.
- Calculate Documentary Stamp Tax on the Deed
The Documentary Stamp Tax on the Deed is calculated at a rate of \(\$0.70\) per \(\$100\) of the consideration (purchase price). We must round up any fractional increments of \(\$100\).
The consideration is \(\$285,900\).
Calculation: \(\frac{\$285,900}{\$100} = 2,859\). Since this is an exact integer, we have 2,859 taxable units.
Deed Tax \(= 2,859 \times \$0.70 = \$2,001.30\).
- Calculate Documentary Stamp Tax on Notes
The Documentary Stamp Tax on promissory notes is calculated at a rate of \(\$0.35\) per \(\$100\) of the mortgage amount, rounding up any fractional increments.
- First Mortgage (\(\$157,310\)): \(\frac{\$157,310}{\$100} = 1,573.1\). Rounding up gives 1,574 units.
Tax on First Note \(= 1,574 \times \$0.35 = \$550.90\).
- Second Mortgage (\(\$100,000\)): \(\frac{\$100,000}{\$100} = 1,000\). Rounding up gives 1,000 units.
Tax on Second Note \(= 1,000 \times \$0.35 = \$350.00\).
Total Note Tax \(= \$550.90 + \$350.00 = \$900.90\).
- Calculate Intangible Personal Property Tax
The Intangible Personal Property Tax is applied at a rate of \(\$0.002\) per \(\$1\) of new debt. This applies only to the new second mortgage of \(\$100,000\).
Calculation: \(\$100,000 \times 0.002 = \$200.00\).
- Final Calculation and Conclusion
Summing all the calculated taxes:
- Deed Tax: \(\$2,001.30\)
- Note Tax: \(\$900.90\)
- Intangible Tax: \(\$200.00\)
Total Tax \(= \$2,001.30 + \$900.90 + \$200.00 = \$3,102.20\).
This total matches option (C). The final answer is \(\boxed{\$3,102.20}\).
Examples
In real estate transactions, understanding tax obligations is crucial for budgeting closing costs. For instance, if you are buying a home, knowing that Florida law charges specific rates for recording deeds and mortgages helps you set aside enough cash to finalize the purchase. This math ensures that both the buyer and the seller are prepared for the financial requirements mandated by local and state authorities.