The Real Deal Miami

Bill to close document stamp tax loophole dies in House

May 07, 2008 09:53AM

After receiving unanimous approval in the Florida Senate last week, Senate Bill 2040, a bill to close a loophole that lets buyers and sellers of big properties avoid the state’s documentary stamp tax, died in the House without a vote. The loophole lets sellers avoid doc stamp taxes by setting up deals as transfers of corporate entities rather than as real estate sales, meaning that you could sell a trophy office tower and end up paying less doc stamp taxes than for a one-bedroom condo deal.