DOR ISSUES SHORT SALES DOC STAMP RULING

The Florida Department of Revenue (DOR) issued a ruling late yesterday stating that doc stamp taxes owed on a short sale should be based on the sale price paid by the purchaser and not on the sale price PLUS any amount forgiven by the home seller's lender. DOR's ruling is effective immediately. A problem arose because Florida law does not clearly explain doc stamp fees on a short sale; consequently, local governments were making their own decisions and charging different amounts. FAR stepped in to officially request a Technical Assistance Advisory (TAA) from DOR, which would give Realtors a specific document that explains the short sale doc stamp procedure. "Just like Florida Realtors, DOR officials were concerned about how this issue could affect Florida homebuyers and sellers and its potential impact on the real estate market's recovery," says FAR Public Policy Representative Trey Price. "Advisories can sometimes take months or even a year before a conclusion is made, however, so DOR's quick decision illustrates their understanding of the importance of this issue