The buyer gets a $280,000 mortgage in Florida. The intangible tax is:
Question & Answer
Review the question and all answer choices
$280
$280 would result from applying a rate of 1 mill ($0.001) per dollar, which is half the correct intangible tax rate — this is a common arithmetic error made by students who confuse the mortgage intangible tax rate with other per-mill calculations used in Florida property taxation.
$560
$840
$840 would result from applying a rate of 3 mills ($0.003) per dollar, which does not correspond to any Florida intangible tax rate and likely reflects a miscalculation or confusion with a different tax or fee charged at Florida closings.
$980
$980 does not correspond to any standard application of Florida's intangible tax rate to a $280,000 mortgage and appears to result from an incorrect rate or an arithmetic error unrelated to the actual statutory formula.
Why is this correct?
Florida Statute § 199.133 imposes an intangible tax on promissory notes and other written obligations to pay money at a rate of 2 mills ($0.002) per dollar of the obligation amount, so a $280,000 mortgage note is taxed as follows: $280,000 × 0.002 = $560. This calculation is straightforward once the correct rate is memorized, and $560 is the precise amount owed at closing for this mortgage.
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