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In Florida, intangible tax on new mortgages is:

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Question & Answer

Review the question and all answer choices

A

$0.50 per $100

Answer A is incorrect because $0.50 per $100 represents a higher tax rate than Florida actually imposes. This might be confused with tax rates in other states or with documentary stamp taxes on mortgages, which are different.

B

$0.35 per $100

Answer B is incorrect because $0.35 per $100 does not match Florida's specific intangible tax rate. This might be a distractor based on outdated information or rates from other jurisdictions.

C

$0.20 per $100 (2 mills)

Correct Answer
D

Not required

Answer D is incorrect because Florida does require intangible tax on new mortgages. This misconception might arise from confusion with states that don't impose this tax or from thinking certain mortgage types are exempt.

Why is this correct?

Answer C is correct because Florida law specifically imposes an intangible tax rate of 2 mills on new mortgages, which equates to $0.20 per $100 of the mortgage amount. This rate is unique to Florida and must be memorized for exam purposes.

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